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Little Darling
crazymac:
--- Quote from: KTM Gordo on April 23, 2009, 16:49:40 ---The causes of the current situation are many and varied, and not really due to our goverment's actions. For the main source, look further west - across the pond.
--- End quote ---
While I agree the catalyst may have been over the pond, there is much to blame our government for!
It is through their allowing the banks free reign to offer the products they did, and to encourage us into more debt, and the house prices to spiral out of control and of course allowing the bonus system in the financial institutions!!
That have all meant that we are in deeper and will be in longer than a lot of countries :evil:
Gordo:
--- Quote from: crazymac on April 23, 2009, 21:11:30 ---While I agree the catalyst may have been over the pond, there is much to blame our government for!
It is through their allowing the banks free reign to offer the products they did, and to encourage us into more debt, and the house prices to spiral out of control and of course allowing the bonus system in the financial institutions!!
That have all meant that we are in deeper and will be in longer than a lot of countries :evil:
--- End quote ---
What products would those be?
As someone who is very much at the sharp end in the financial industry I can see both sides of the argument - not just the easy banker-basing line taken by the media. I've posted on here before about the background to the current situation and the parties involved.
crazymac:
I'm not going to pretend to be anywhere near an expert on this, I base my comments on mainly what I read and hear, so yes, some of it may well be biased aginst the bankers?
I just don't see why the lending institutions should have been allowed to offer 120% mortgages? Credit card companies (the majority of which are bank owned) have been increasing credit limits year on year, people have been encouraged to get into more and more debt through these actions, all these things have contributed.
Now, don't get me wrong, people have to take some responsibility for their actions, I have a £100,000 mortgage which I have had now for about 8 years but my house has increased in value to over £300,000 at the peak, but about £250,000 to £260,000 now. I could have remortgaged for an obscene amount of money, I could have used my credit cards to their limits (2 cards as a family with a limit of £15,000 on each one) but I didn't. I kept my mortgage as it was, and I cleared some balances I did have so now we don't have any credit card balance. So I am OK in the grand scheme of things.
Other people didn't, business's allowed to self cert on there morgages, I know of one guy who's wife wanted a new house so he told the mortgage company that he could afford a £500,000 mortgage, the house has been repossessed and sold for less than half that and he has had to fold his business. Thats his own stupid fault! but he should NEVER have been allowed to do it.
The Government have no ability to do what they are being asked to do. To get a job, I have to be experienced and qualified to do that job, instead what we have is a bunch of overpaid, underqualified managers who are playing at running a large business while fiddleing their expenses on what is already a highly paid job! £85,000 a year is a tidy salary and lets face it, if the majority of politicians had to have an interview for a real job they wouldn't get the job!!
Gordo:
--- Quote from: crazymac on April 23, 2009, 23:26:12 ---Other people didn't, business's allowed to self cert on there morgages, I know of one guy who's wife wanted a new house so he told the mortgage company that he could afford a £500,000 mortgage, the house has been repossessed and sold for less than half that and he has had to fold his business. Thats his own stupid fault! but he should NEVER have been allowed to do it.
--- End quote ---
Why not? He's an adult, and he knew the risks. The reason he had to get a self-cert. mortgage is because he wouldn't have been able to get a normal one! :doh:
You can put in safeguards, but when people circumvent them there isn't a lot you can do.
The real problem is that we've developed a culture where people won't take responsibility for their own actions - it's always someone else's fault.
V8MoneyPit:
--- Quote from: KTM Gordo on April 24, 2009, 14:09:59 ---The real problem is that we've developed a culture where people won't take responsibility for their own actions - it's always someone else's fault.
--- End quote ---
Indeed, but that is one thing where we can lay the origins firmly across the pond, don't you think?
I'm 100% with you on your comments though. Frankly, it doesn't matter who is in power, there have been factors that would have forced us into recession anyway. It's the way it has been handled that might be questionable.
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