The credit crunch began when the US sub prime mortgages went under and triggered a spiral effect in the economies around the world. This was followed by the falling value of houses in Britain that has continued unabated to this day. Northern Rock succumbed to the crisis in September 2007 and was nationalized in February 2008.
Consumer prices shot up in 2007 and even in the first half of 2008. In January 2008 Bear Sterns collapsed followed by Lehman Bothers in September of the same year. The Bank of England has since earmarked 50 billion pounds to purchase private assets (ANL, 2009)