This is not quite a Black Wednesday moment but it is a huge blow to the government’s record for economic competence. In many ways, nationalising Northern Rock was the easy bit. The government now has a whole bunch of problems on its hands; John Redwood has a list of questions that Darling needs to answer that is well worth looking at.
Northern Rock will not go away quickly or quietly. It will act as a constant drag on Labour’s poll ratings all the way up to the next election.