Welcome to 2007

[NickFitz]

AIUI the original sub-prime problem wasn't so much the dodgy lending per se, but that this was hidden and disguised within portfolios of supposedly sounder loans, the financial equivalent of mixing radioactive waste with household refuse.

I seem to remember linking to something that explained it quite well... and indeed I did

[Gonzo]

AIUI the original sub-prime problem wasn't so much the dodgy lending per se, but that this was hidden and disguised within portfolios of supposedly sounder loans, the financial equivalent of mixing radioactive waste with household refuse.

Indeed.

The John Bird and John Fortune piece on it is still the best explanation that I have seen going. linky (It is SFW but not if work does not like YouTube)

If banks want to take the risk, I hope its only small institutions like Kensington and Precise, we don't bail them out if it goes tits up.

Absolutely.

There is nothing wrong with lending money to higher risk customers provided that everyone involved is aware of the risk they are taking. If it all goes tits up then the taxpayer should not be bailing them out.

[Doggy Styles]

AIUI the original sub-prime problem wasn't so much the dodgy lending per se, but that this was hidden and disguised within portfolios of supposedly sounder loans, the financial equivalent of mixing radioactive waste with household refuse.

That was exactly what the problem was, except it was radioactive waste with the household shopping. However, the article seems to be about sub-prime mortgages themselves, not their wrappers.

If banks want to take the risk, I hope its only small institutions like Kensington and Precise, we don't bail them out if it goes tits up.

[OwlHoot]

The return of sub-prime.

AIUI the original sub-prime problem wasn't so much the dodgy lending per se, but that this was hidden and disguised within portfolios of supposedly sounder loans, the financial equivalent of mixing radioactive waste with household refuse.

[thunderlizard]

We say 'overlooked by the high street'

which, coincidentally, also describes the type of compact, grotto-style, Luxcrete-aspect dwellings that these mortgages will now make available.

[AtW]

The return of sub-prime.

From the ******** article:

"Figures today from the Bank of England revealed that net new mortgage lending (not including redemptions and repayments) in September was £112m, down from £1.62bn in August. "

[Clippy]

The return of sub-prime.