Thursday, Jul 24, 2008
Another reason we won't go back to "normal"...
IFA Online: FSA removes compliance officer at disgraced mortgage firm
All the young 20 and 30 somethings with the memory of a goldfish waiting for lending conditions to return to "normal" - ie what they were pre-crunch, have got a long wait. I doubt we'll see a bubble like that again in our lifetime. Apart from the burnt fingers - the FSA won't let it happen again. Looks like they are finally getting around to properly enforcing their "suitability" regime to the mortgage market. Another nail in the coffin.
Posted by jackas @ 02:03 PM (510 views) Add Comment
8 Comments
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1. renting2 said...
Not at all sure that it won't happen again. If predictions are correct and there is a large correction down, then there must follow a large correction back to 'normal' prices. But we know from experience that there'll be an overshoot and I bet banks etc will push hard again, all fuelled by a continued fiat currency and paper-tiger regulators. That is unless someone with real b***s AND real economic nous, steps up to the mark. Can't personally see that.
2. layers said...
The big surprise is that only 1 compliance officer from 1 firm has been removed??? and who the Hell are PMSG anyway, and why were they singled out? They were all at it - Lloyds offered me £300k more than I asked for back in 2005, and when I pointed out that I could barely afford it, let alone if interest rates moved up, the woman just laughed. And no, I didn't take a mortgage out, but was under pressure from the wife, so went through the motions ;-)
3. d'oh said...
layers - you are correct...they are just hanging a few people out to dry so that it looks like they are doing something. It is unjust...either let them all swing or let them all off...don't just pick on the little guys who can't afford proper legal representation.
4. d'oh said...
ps - It wasn't just mortgages. I can remember in 2005 helping a friend out with an interest rate swap of my own, which involved me taking out a loan with Cahoot. It was obscene how easily they handed over £25k to me at 5.6% interest. Literally 2 minutes on the internet. I sort of wish I'd borrowed it for myself and invested it in the yellow stuff or similar. Complete madness.
5. jackas said...
It's not an isolated incident - it's nearly one a week now...
http://www.fsa.gov.uk/Pages/About/Media/Facts/fines/index.shtml
6. layers said...
@4 d'oh - oh well at least you didn't lose anything!
7. dave said...
Of course there will be another boom. How on earth will anyone, particularly the completely useless FSA, spot any sort of bubble, even if it were sitting on the end of their nose? Who would have the nerve to burst that bubble? The Bank? The Treasury? Don't make me laugh.
Markets by their very nature are cyclical and houses will certainly rise once again. Now, who's brave enough to call the bottom?
8. jackas said...
Good luck to you Dave, but be warned.
People that try to pick bottoms usually just end up with smelly fingers.