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gruffydd

Lax Lending Did Not Cause Property Bubble -

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she is correct, IO, 8 times joint, self cert, guaranteed no checks. 125%, buy with a friend, homebuy, all symptoms of a tight and sustainable lending regime.

and 100% solvent and self sustaining banks just prove the case.

truly a miracle economy, prudently run within the golden rules.

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Guest DissipatedYouthIsValuable
she is correct, IO, 8 times joint, self cert, guaranteed no checks. 125%, buy with a friend, homebuy, all symptoms of a tight and sustainable lending regime.

and 100% solvent and self sustaining banks just prove the case.

truly a miracle economy, prudently run within the golden rules.

Surely not.

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she is correct, IO, 8 times joint, self cert, guaranteed no checks. 125%, buy with a friend, homebuy, all symptoms of a tight and sustainable lending regime.

and 100% solvent and self sustaining banks just prove the case.

truly a miracle economy, prudently run within the golden rules.

:D:D:D

Yup!

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she is correct, IO, 8 times joint, self cert, guaranteed no checks. 125%, buy with a friend, homebuy, all symptoms of a tight and sustainable lending regime.

and 100% solvent and self sustaining banks just prove the case.

truly a miracle economy, prudently run within the golden rules.

They live in their own little make believe world covering their behinds when anything goes wrong.

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House price bubbles have not been caused by lax lending, the Association of Mortgage Intermediaries has told the FSA.

:lol:

I particularly like the way "other macro economic factors" are the reason given for the crash, and that all countries were affected regardless of their individual regulatory regime.

He then feels it necessary to point out how different our system is to the American one. Even though, apparently, this would have had no bearing on events anyway :rolleyes:

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:lol:

I particularly like the way "other macro economic factors" are the reason given for the crash, and that all countries were affected regardless of their individual regulatory regime.

He then feels it necessary to point out how different our system is to the American one. Even though, apparently, this would have had no bearing on events anyway :rolleyes:

Incredible, isn't it!?! :P

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:lol:

I particularly like the way "other macro economic factors" are the reason given for the crash, and that all countries were affected regardless of their individual regulatory regime.

He then feels it necessary to point out how different our system is to the American one. Even though, apparently, this would have had no bearing on events anyway :rolleyes:

Forgive me, but doesn't that make his point?

That many countries were effected regardless of the regulatory regime?

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Forgive me, but doesn't that make his point?

That many countries were effected regardless of the regulatory regime?

The way I read it, he is on one hand saying that financial regulation is irrelevant, and on the other saying we are not like America.

I presumed his latter point was that things in America were much worse due to their ninja loans, Alt-As, teasers, etc.. and he was thus trying to distance us from their system.

If on the other hand I have mis-interpreted it and he is actually saying that our bust is no different to America's despite the difference in lending policies, then I think he is just wrong/misguided.

Ultimately the reason for the bubble was the availablity of cheap credit (I don't think anyone is arguing that). In countries with tighter lending standards the reason they suffered a similar fate was due to people and companies speculating with money raised in other countries.

Take Spain or eastern europe, many prices were not pushed up by the locals, but more by foreign money/speculation.

The only way that the lending would have been controlled is if it was regulated and if the financial regulators had had the slightest clue what was going on. It wasn't and they didn't.. simple as that. It is probably true that all of the regulatory bodies world wide were equally clueless, but this is not to say that they could not have prevented the problem if they had understood it. I am starting to move around to the stand point that the central banks should have better directed them, but again I think it has been shown that they also had no clue what was going on.

Finally, to argue that financial regulation is irrelevant is to argue that:

Controlling BTL mortgages would not have had an impact

Controlling minimum LTVs wouldn't have had an impact

Not allowing sub-prime mortgages would not have had an impact

Not allowing joint 5 times earnings would not have had an impact

Edit to add.. Oops.. missed off the best one, liar loans! (not that any financial regulator should have been concerned about that of course :rolleyes: )

Edited by libspero

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Be warned folks! This is now the second article in 24 hours that's trying to shift blame.

The bankers are saying 'don't look at us' and Portillo is saying its the 'unemployed deserve condemnation'.

We need to keep a watch for further instances of blame shift. We all know who caused the crisis and we all know how far they'll go to resist change.

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Finally, to argue that financial regulation is irrelevant is to argue that:

Controlling BTL mortgages would not have had an impact

Controlling minimum LTVs wouldn't have had an impact

Not allowing sub-prime mortgages would not have had an impact

Not allowing joint 5 times earnings would not have had an impact

Edit to add.. Oops.. missed off the best one, liar loans! (not that any financial regulator should have been concerned about that of course :rolleyes: )

All those factors gave rise to the greatest financial scam/pyramid ponzi rip-off of ALL time. We will be living with the consequences for at least a quarter of a century...

http://www.telegraph.co.uk/finance/comment...t-starting.html

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