Sunday, 26 June 2011
Tour de Force
Without doubt the best book ive read on the economic crisis. Which WAS and IS caused by a property bubble. From an American perspective, but the parallels with the UK are pretty much priced in.
The simple fact is if we had not gone down this road of zero down, 6 times earnings, 125% mortgages,ect(in who's benefit was that stupid idea? bankers certainly but also the politicos who reaped the votes and the tax revenue generated) and stuck with 15 to 20% deposits as the insurance for the loan, we would not be talking about this at all. And they were able to go down this road because of the ultimate power tool of politics "fiat money"
Here they are talking about it.