The 10 people most responsible for the recession

[Mich the Tester]

How about the financially niave general public? People who thought a bedsit in Brixton for 250k was "a bargain". At a time when sensible people were doubting these overvaluations many idiots werer taking out 100% plus self cert mortagages, bacuase it was "different this time". Many leaving themselves little or no room to manouvre should things go pear shaped. Borrowing stupid multiples of income with no contingency plan. The last decade saw sense go out of the window, in favour of the "I want it now" forget about tomorrow speculators. It was always going to end in tears, that was apparent several years ago, but even when you thought this madness has to end it continued.

I agree to some extent. I'm not convinced that the majority in NL were really that profligate, but I often found myself wondering how so many people financed those BMW X5s and Mercedes M classes when the price was not far off a small house.

But isn't it the responsibility of the so-called experts, i.e. financial advisors and bankers, to protect people against financial irresponsibility? Isn't it also their responsibility to simply refuse loans to people who are in danger of going over the top, even if their payment record has been good?

Our house is financed by a mortgage that we took out based on Mrs Tester's income; she's head of nursing at a large care charity, so her income is OK but not huge. Obviously that means our house is OK but not huge, but it's very nice to sleep comfortably in the knowledge that should my contracting income fall away, we can still pay the mortgage, important bills and food with one income. We can live it up from my income, and live from hers.

[Bagpuss]

There were organisations such as the Nationwide bs who were still operating to a sensible model, as many banks appeared to be. However the problem lies with a parallel market that was operating. A market where many organisations were happily opening themselves up to self cert (self lie in many cases) and borrowers who fell outside their normal lending policies. This was the market of the mortgage broker, a subprime sales market that has had a large part to play in this boom/bust. These shady practices that the mainstream banks were complicent, should have been regulated/controlled whatever.

[spongebob]

I want to know how George Bush got on that list. I didn't know he was party to any serious economic decisions.

[Ruprect]

Spongebob, that is a splendid avatar.