Could the UK default?

http://blogs.ft.com/maverecon/2008/11/how-likely-is-a-sterling-crisis-or-is-london-really-reykjavik-on-thames/

Along with Lord Levene’s statement on `You and yours` yesterday saying that `it won’t be better than 1929` I’m worried.

I know that it’s no good talking up a recession – but facts are facts.

Is there anyone that can say that these things won’t happen? I mean Buiter was right on Iceland?

If it did happen of course it would be bye bye Labour for at least a generation if not the meltdown of that Party.