http://www.independent.ie/national-...ned-to-reckless-mortgage-lending-2267944.html
Should this not read:
"House buyers have returned to reckless borrowing"?
Should this not read:
"House buyers have returned to reckless borrowing"?
"House buyers have returned to reckless borrowing"?
People can only borrow what the banks approve.
http://www.independent.ie/national-...ned-to-reckless-mortgage-lending-2267944.html
Should this not read:
"House buyers have returned to reckless borrowing"?
People can only borrow what the banks approve.
This is up there with the barman got me drunk.
Barmen, in fact, have a legal duty of care under common law to make sure that you don't get yourself dangerously drunk. Ask any publican.
Banks ought to be expected to have the same duty of care towards borrowers.
People can only borrow what the banks approve.
My car will do 150 MPH.
Doesn't mean I drive at that speed.
Surely the onus is on both the individual (must be realistic about what they can afford) and the banks (responsible lending). You cant just say its one fault over the other.
People need to cop on and realise that it is insane to borrow 5-10 times your salary. That being said if someone goes to the bank looking for same the banks need to just say no. Realistically if one bank says no they all should say no. They should have the same infrastructure and regulations in place
You don't seriously believe that by merely changing the person that runs the regulatory body the world is going to be fine in the future? Every time some huge bubble bursts, especially financial ones, it is blamed on bad or insufficient regulations, or even deregulation. It is then preached, that all that is needed is the right person and he/she has been found and everything is going to be fine. Fastfoward a few years and the same happens again.On the first part, oh that such wisdom prevailed a few years back. I think the base point is that consumers always need to be protected from themselves because they have proved themselves to be essentially clueless and greedy. It's that nasty 'human' factor they all possess. If 100xsalary loans are available, people will grab them up despite the "end-of-their-world" warnings that might accompany them. To stop the nonsense this is where the regulator comes in. Thanks be to god we now have a regulator with balls and brains at the moment.
Mortgages are not some complex being. From the consumers point of view it is simple: the bank lends you a certain amount of money for a set time at certain interest conditions, and all you are obliged to do is ensure you can make the monthly payments in good and bad times.I hate this argument. Banks deal in money and finance, it's their primary purpose. People don't, and mortgages aren't simple transactions. They go to the bank and expect them to give them what they can afford, and while that's certainly misguided, it's just plain the way it's been done. Tradition is hard to change.
I agree, but the largest blame rests on governments and central banks for providing the money at such low interest rates. Borrowers are the only ones to blame if they did not make adequate provisions to cope in the bad times, whether this be out of ignorance or carelessness doesn't matter.Lenders, borrowers and the governement are all to blame for where we are today, and as the article suggests, not much has changed. (Plus it's in the "independent", hello?) Saying that the article is wrong because borrowers are to blame is on the same intellectual level as the article. Seriously, grow up.
I fully agree with you. I know of so many highly educated people, that do not know the first thing about personal finance. And I would love to see a world where no company or industry or group of individuals is bailed out for making mistakes. The costs of the mistakes of some should never be carried by society as a whole. All that does is reduce the risk for the risk taker. Heads I win, tails I break even; that can only lead down one road.If you want to change the process, start by educating everyone. Gov.ie needs to educate borrowers (and themselves on basic economics), borrowers needs to buck up and educate themselves, and lenders need to be educated by letting them suffer the consequences of their actions.
Mortgages are not some complex being.