drplokta: (Default)

[personal profile] drplokta 2020-10-04 01:01 pm (UTC)(link)
To avoid 2008 happening again, legislate that mortgage repayments can never increase by more than 2% per year (except where such an increase is required to catch up on arrears). That avoids all the people being sucked in by crazy initial deals, planning to refinance on another crazy initial deal in two years when the first deal is up, and then getting caught out when the deals evaporate. But remember, UK mortgage lending practices weren’t actually the problem. Northern Rock’s loan book wasn’t that bad. The problem was that mortgage lending in the US was much much worse, and when that collapsed the flow of finance that Northern Rock relied on to roll over its own finances dried up.
channelpenguin: (Default)

[personal profile] channelpenguin 2020-10-05 09:00 am (UTC)(link)
Have to say again - most Germans rent. Even middle-class professionals. Even middle-class professionals who are also landlords... I don't see any collapse of capitalism here! I do see better conditions for renters though ...