The current account deficit has increased 50% to £20 billion in the 3rd quarter.

That’s double what was expected, and it is largely as a result of the credit crunch.

My take is that there were a lot of revenues generated by phony deals on phony securities, and the time to pay the piper is now coming due.

It should push down the Sterling a bit, which is one reason that my year end predictions now look increasingly unlikely.^*

^*There is also the fact that I can’t predict my way out of a paper bag.