Britain: The Economic Fallout

The economic crisis is rippling out to the sectors that service the financial elitefrom child care to restaurants to travel agencies
A shop window is seen boarded up in Princes Street, in Edinburgh, Scotland. Bruno Vincent/Getty Images

With unemployment rising and investment banks likely to lay off thousands more in the coming months, Britain is in the midst of a major slowdown. Although the situation isn't as dire as in the U.S., ripple effects from the financial crisis are starting to spread through the British economy. From restaurants to real estate agents to domestic staff agencies, myriad businesses that service Britain's financial sector are feeling the pinch. "Cafés, restaurants, and other services linked to the City and financial markets are going to be reamed," says Jamie Dannhauser, an economist at Lombard Street Research in London.

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