I don't often agree with Matt. He is usually too right wing for my taste but he makes some valid points here about the growing mortgage debt problem. Like many people I initially felt that I should not have to bail out those who were reckless or financially illiterate. (ie the guy on the late late who said he never heard of a stress test) but Matt does make some valid points about why we cant ignore this problem-even from a moral point of view.
I would also acknowledge that many people borrowed conservatively but can no longer pay because of redundancy.
Given particularly the situation with our developers who because it seems of negligence by the banks wont be pursued for personal guarantees ( according to the Indo), why cant something be done for Joe soap. Like forcing banks to take an equity stake for certain types of mortgages? Seems the Banks can swallow billions of tax payers money but can't be flexible for their clients?
We can’t afford not to tackle our debt crisis -Times Online