Oh dear: Now banks relax mortgage loan rules

[wendigo100]

As if houses prices aren't high enough already, and as if personal debt isn't high enough already! BBC here.

People who have a poor credit history or are self employed are finding it easier to borrow money to buy a home, market analyst Datamonitor has said. Banks are increasingly willing to relax their rules because the mainstream market is saturated, Datamonitor said.

This seems utterly crazy, if you consider that average house prices have topped 200 grand, and this:

Caller deluge hits debt helplines

Both the Citizens Advice Bureau and Consumer Credit Counselling Service have said their debt advice lines have had more calls than normal for January. National Debtline had 12,000 calls in the first two weeks of January - making it the busiest month since it was set up in 1987.

Have banks not got any strategic thoughts in their heads?

[BlasterBates]

....a last blow in a tau t balloon ?

[threaded]

The Earl of Oxford declared that Spain would permit two ships, in addition to the annual ship, to carry out merchandise during the first year... [but] the first voyage of the annual ship was not made till the year 1717 [the deal had been made six years earlier], and in the following year the trade was suppressed by the rupture with Spain.

[Bagpuss]

According to some on here the bubble was going to burst in 2001. 5 years later it still hasn't happened!

One thing it's taught me is to never listen to any advice on this board

[threaded]

I can calculate the movement of the stars, but NOT the madness of men.

[BlasterBates]

[DOOM]
Well just to get this in perspective, in 1997 analysts warned that shares were overvaluated, and in 2001 they dropped below 1997 valuations, and in 2001 analysts predicted that the housing crash would be around 2003, so 2 years isn't long for an overdue crash.
[/DOOM]

[Bagpuss]

[DOOM]
Well just to get this in perspective, in 1997 analysts warned that shares were overvaluated, and in 2001 they dropped below 1997 valuations, and in 2001 analysts predicted that the housing crash would be around 2003, so 2 years isn't long for an overdue crash.
[/DOOM]

No but 3 years is!

[threaded]

Oh! may some western tempest sweep
These locusts whom our fruits have fed,
That plague, directors, to the deep,
Driven from the South Sea to the Red!
May he, whom Nature’s law obey,
Who lifts the poor, and sinks the proud,
‘Quiet the raging of the sea,
And still the madness of the crowds!
But never shall our isle have rest,
Till those devouring swine run down,
(The devils leaving the possest)
And headlong in the waters drown.
The nation then too late will find,
Computing all their cost and trouble,
Directors’ promises but wind,
South Sea at best, a mighty bubble.

[sasguru]

....a last blow in a taught balloon ?

How do you teach a balloon? And even if you can, what does a taught balloon have to do with house prices? Granted you could exhibit it at a freak show and make lots of money to pay off your mortgage. I certainly would pay good money to see a taught balloon. Could it walk on stilts? Sit up and beg?
Do the crossword?
The mind boggles.

[NoddY]

And the benefits of house price inflation are .....??????????