So the news this morning is that for six months after its multi-billion pound taxpayer rescue, Northern Rock continued to loan £800m in high-risk mortgages. The findings are from a National Audit Office report, which directly blames the Treasury for failing to carry out due diligence. Have these high-risk mortgages been significant for the lender? When examining the bigger picture, are they in the foreground? The Northern Rock 125% "Together" mortgage is apparently responsible for 50% of its arrears and 75% of its repossessions. And so... we're left to wonder what "due diligence" isn't being carried out right now, and we continue to sleep walk from crisis to crisis, with an unelected PM hopelessly out of his depth.

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