Wednesday, September 19, 2007
Stable door is being shut now !
Fed blamed for sub-prime lending
Laws that would give new authority to two US banking regulators to police unfair and deceptive lending practices have been approved by a key committee. Wow !
Posted by alan @ 05:16 PM (617 views)
2 thoughts on “Stable door is being shut now !”
Add a comment
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
uncle chris says:
I’m astounded at the way that the UK establishment believe (publicly at least) that risky sub-prime lending is limited to the USA. It’s only because falling house prices over the pond (upto 40% in 2 years in some places) have unearthed enron-esk holes in the balance sheets of big businesses, who whole economic gamble was based on prices continuing upwards – a bit like one big pyramid scheme. It is my firm opinion that the sub-prime lending in the UK has been as dangerous (if not moreso) than in the US and that we will be hit much harder than they will be. I think the government and BoE know this, which is why both are in a state of near panic at the events of the past few weeks, and no doubt at signs that prices have begun to fall over here. In the long-run there is frankly nothing they can do, but I think what we are seeing is temporary measures to stave off the coming downturn in the UK economy until Gordon Brown is safely through the next election. As such, the UK tax-payer is being asked to bail-out the bad gambling habits of greedy banks to meet GB’s political aims.
crash bandicoot says:
In the US prices were only 4.5x average salary too. In the UK we are at double that. Anyone who has bought at these levels without a large deposit is subprime now. Only continuously rising house prices made this look like a reasonable thing to do. There must be some very worried people out there.