|
Re: Northern Rock
I blame the following.
tv channels promoting home ownership probably to protect vested interested.
poloticians promoting home ownership for same reason as above as well as owning a home making you feel wealthier than what you are.
a economy that has been fueled by rising house prices and credit in general meaning interest rates need to be kept low to keep it going but the cost is prudent people who save instead of borrow lose out and price of goods increase (inflation).
There is only one fix and that is a correction which will involve a housing price crash to correct the value of money and bring down inflation as well as a probable recession. Credit needs to cut so people start learning to spend within their means only again. The problem with the solution for politicians is it is not going to win them an election.
|