And while Mr. Osborne says the BOE will decide whether the program is extended after three years, the pressure to keep it going to avoid future house-price falls is sure to be intense.

WSJ: Osborne Is Losing His Allies on All Sides

That implies a recognition of the need to avoid pushing down too hard on inflation once it falls to 2%.

ECONOMIST: Stalemate | The

If its enterprise value falls below its liabilities, equity holders will avoid further losses by a "put" to debt holders, meaning they bail out and let creditors fight over the remains.

FORBES: Default-risk bookies