As British taxpayers discovered to their cost during the
financial crisis, big banks were simply too big to fail. The banks are no
longer the biggest domestic threat facing the UK economy, that dubious honour
now belongs to the housing market. At the start of this year UK homes were
worth £5.75 trillion in total, around 2.7 times GDP, according to Savills. The
UK property sector is too big to fail and the regulators are partly to blame,
because their easy money policies have ramped up house prices to today's crazy
levels. The property market is now a Ponzi scheme. It can only be kept going by
sucking in new blood at the bottom, and banks are happily obliging by opening
up a new front in the mortgage price war, with a blitz of cheap deals aimed at
young buyers borrowing 95% of their property's value. Precisely the ones who
are most vulnerable to a crash. Read more on Yahoo News.
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