I read that dead man walking Gordon Brown has indicated he will seek to force banks to stop lending at 100% for would be mortgages “to encourage more responsibility”.
What a load of tripe.
For starters, isn’t this the same Gordon Brown who has forced interest rates down to virtually zero in a madcap attempt to prop up the necessarily deflated property market? How irresponsible is it to virtually wipe out the motive to save whilst rewarding the feckless borrowers? Also, haven’t we already seen that the MORE government interfers in the financial markets the more problems it creates? Finally, surely the decisions for lending must lie with private banks? If they call it wrong – let them sink. If they call it right – everyone wins. Banks ran themselves pretty well before the Gordon Brown fueled property boom which created the credit bubble that has now burst. This problem didn’t start in America – it started in Downing Street.