The U.K. Economy Is Having a Meltdown. The Bank of England Had to Intervene.

The recent sharp drop in the British pound and in U.K. government bonds means traders are at panic stations, forcing the Bank of England to step in to calm things down.

The spectacular drops in the past month were sparked by a dramatic policy decision to borrow billions to cut taxes to supercharge growth. But they are the culmination of years of deterioration.