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[Rods2]

Most people, including myself, have thought of bank problems since 2007 being due to the investment bank side of retail banks, but as Thomas Pascoe points out in this DT article today, the problems actually stem from the retail side, which were made worse by the investment side.

http://blogs.telegraph.co.uk/finance/thomaspascoe/100022647/george-osbornes-misses-the-point-retail-banks-not-investment-banks-caused-this-crisis/

He is right and he is also right that the ring fencing of retail and invest area of banks will do nothing to solve this problem. Although I do agree with the separation of retail and invest banks deposits, so retail deposits cannot be used by investment banks.

[Abiton]

From your link:
"the fact remains that the start of the crisis was a result of irresponsible borrowing by households"

What a crock.  The start of the crisis was a result of irresponsible lending to households.  Obviously.  Could the banks not have said "no, you're a bad risk, go away"? 
 

[mantahatch]

From your link:
"the fact remains that the start of the crisis was a result of irresponsible borrowing by households"

What a crock.  The start of the crisis was a result of irresponsible lending to households.  Obviously.  Could the banks not have said "no, you're a bad risk, go away"? 
 

I could not agree more, if the banks did not lend more than the cost of the house. Then greedy estate agents and house sellers would not have been able to put the price of property up so quickly.

[cem_devecioglu]

as I see, most people still accusing the banks for the mortgages and the crisis..
 
but no one thinks those given credits did not evaporate.. it must be still in the system
in someones pocket.. but interestingly markets go mad and tighten much more..
 
its a common technique that ilusionists use.. they point you the wrong direction when they are doing their job.. 
 

[cem_devecioglu]

and today , if there were no electronic transactions and if there was a way to follow your money
it would be very interesting to follow its direction through higher levels of community pyramide..

[TheBoy]

Its hardly anything new. Anyone who couldn't see the crash coming were pretty dumb.

We were in a scenario where credit was cheap and easy, and people were encourage to take out new credit cards with balance transfer facilities to pay off other credit cards.

I actually know someone who bought a new car on a credit card, and thought they'd never have to pay for it, continually transferring the balance. Idiots.

It was blindingly obvious that this credit would dry up (the catalyst, possibly less predictable, was in the US), and a significant financial problem would hit a very large number of consumers. The lenders would lose money as these consumers would simply go bankrupt as they were unable to afford the high credit card charges, and no options to balance transfer. The lenders would be impacted enough not to be able to lend, and the whole house of cards would go tits up.

Now I'm just the stupid kid from the local comprehensive, so if I was able to foresee this...

Sometimes, I hate it when I'm right 

[OOMV6]

From your link:
"the fact remains that the start of the crisis was a result of irresponsible borrowing by households"

What a crock.  The start of the crisis was a result of irresponsible lending to households.  Obviously.  Could the banks not have said "no, you're a bad risk, go away"? 
 

It's both.

Why is it, that in society, we, as the human race, have this in-built ability to always blame to corporation, the big boys, the faceless. Yes, for sure, there was bucket loads of irresponsible lending, but that must mean there was a lot of irresponsible borrowing.
So as usual, Joe Bloggs does not have to think and take responsibility for his own life. He can let others make his decisions for him....... then giving him a license to blame them when is goes wrong.
Oh, and Joe Bloggs might even work for a large financial institution himself. Irony? Maybe.

I get just a tad sick of this "let me sit back and blame everybody and everything for everybody and everything that is wrong in life"

[cem_devecioglu]

now after all this mess whats the outcome ?
 
too many people lost their jobs.. so ? everyone accepts to work cheaper or no increase in salary at least..
 
you can buy homes, whole buildings, hotels so cheaper that prices would be funny to compare to before..
 
and if your pockets are deep enough you can buy banks,factories and if you are greedy and rich enough you can buy a whole country.. but stop.. this will take too much attention..
 
there are other ways.. as happened in history.. and thats not the first time..
 
 

[STMO123]

Its hardly anything new. Anyone who couldn't see the crash coming were pretty dumb.

We were in a scenario where credit was cheap and easy, and people were encourage to take out new credit cards with balance transfer facilities to pay off other credit cards.

I actually know someone who bought a new car on a credit card, and thought they'd never have to pay for it, continually transferring the balance. Idiots.

It was blindingly obvious that this credit would dry up (the catalyst, possibly less predictable, was in the US), and a significant financial problem would hit a very large number of consumers. The lenders would lose money as these consumers would simply go bankrupt as they were unable to afford the high credit card charges, and no options to balance transfer. The lenders would be impacted enough not to be able to lend, and the whole house of cards would go tits up.

Now I'm just the stupid kid from the local comprehensive, so if I was able to foresee this...

Sometimes, I hate it when I'm right 

Billions of people are right.......now.

[cem_devecioglu]

From your link:
"the fact remains that the start of the crisis was a result of irresponsible borrowing by households"

What a crock.  The start of the crisis was a result of irresponsible lending to households.  Obviously.  Could the banks not have said "no, you're a bad risk, go away"? 
 

It's both.

Why is it, that in society, we, as the human race, have this in-built ability to always blame to corporation, the big boys, the faceless. Yes, for sure, there was bucket loads of irresponsible lending, but that must mean there was a lot of irresponsible borrowing.
So as usual, Joe Bloggs does not have to think and take responsibility for his own life. He can let others make his decisions for him....... then giving him a license to blame them when is goes wrong.
Oh, and Joe Bloggs might even work for a large financial institution himself. Irony? Maybe.

I get just a tad sick of this "let me sit back and blame everybody and everything for everybody and everything that is wrong in life"

more than that.. it was a trap..

[ozzycat]

From your link:
"the fact remains that the start of the crisis was a result of irresponsible borrowing by households"

What a crock.  The start of the crisis was a result of irresponsible lending to households.  Obviously.  Could the banks not have said "no, you're a bad risk, go away"? 
 

It's both.

Why is it, that in society, we, as the human race, have this in-built ability to always blame to corporation, the big boys, the faceless. Yes, for sure, there was bucket loads of irresponsible lending, but that must mean there was a lot of irresponsible borrowing.
So as usual, Joe Bloggs does not have to think and take responsibility for his own life. He can let others make his decisions for him....... then giving him a license to blame them when is goes wrong.
Oh, and Joe Bloggs might even work for a large financial institution himself. Irony? Maybe.

I get just a tad sick of this "let me sit back and blame everybody and everything for everybody and everything that is wrong in life"

more than that.. it was a trap..

and it droped all of us in the sh1t

[Rog]

Does anyone remember 105% Mortgages ?

How does that work ? I mean . . . . really work

[geoffr70]

From your link:
"the fact remains that the start of the crisis was a result of irresponsible borrowing by households"

What a crock.  The start of the crisis was a result of irresponsible lending to households.  Obviously.  Could the banks not have said "no, you're a bad risk, go away"? 
 

It's both.

Why is it, that in society, we, as the human race, have this in-built ability to always blame to corporation, the big boys, the faceless. Yes, for sure, there was bucket loads of irresponsible lending, but that must mean there was a lot of irresponsible borrowing.
So as usual, Joe Bloggs does not have to think and take responsibility for his own life. He can let others make his decisions for him....... then giving him a license to blame them when is goes wrong.
Oh, and Joe Bloggs might even work for a large financial institution himself. Irony? Maybe.

I get just a tad sick of this "let me sit back and blame everybody and everything for everybody and everything that is wrong in life"

exactly, they're normally bloody socialists anyway who don't take personal responsibility and like to blame everyone and everything else, and if it's something like a bank or big company well that's even better for them!

[Rods2]

Its hardly anything new. Anyone who couldn't see the crash coming were pretty dumb.

We were in a scenario where credit was cheap and easy, and people were encourage to take out new credit cards with balance transfer facilities to pay off other credit cards.

I actually know someone who bought a new car on a credit card, and thought they'd never have to pay for it, continually transferring the balance. Idiots.

It was blindingly obvious that this credit would dry up (the catalyst, possibly less predictable, was in the US), and a significant financial problem would hit a very large number of consumers. The lenders would lose money as these consumers would simply go bankrupt as they were unable to afford the high credit card charges, and no options to balance transfer. The lenders would be impacted enough not to be able to lend, and the whole house of cards would go tits up.

Now I'm just the stupid kid from the local comprehensive, so if I was able to foresee this...

Sometimes, I hate it when I'm right 

I agree many people could see it coming and it was widely written about in economic sections of many newspapers, what was a surprise was the way the sub-prime mortgages in the US were packaged and sold as AAA investments so the problems spread well beyond the US banks. I don't think people outside of banking circles knew that this was happening.

The banks in the UK have made big losses in commercial property in every recession I can remember from the 1970's, where they allow developers to mortgage their holdings during a boom at the top of the market value and find when they go bust that the properties value in a recession, does not cover their losses. I can't see them ever learning a lesson here. 

[OOMV6]

http://www.youtube.com/watch?v=d48tQIHLXe8&playnext=1&list=PLA9275603AF07C7FC&feature=results_main

First video with stick men some it up really well.