Tuesday, May 8, 2007

The crash is coming and it could be soon

The Bank of England must act decisively and swiftly to curb the current house price madness

Will Hutton
Sunday May 6, 2007
The Observer

Who remembers that only 15 years ago the British housing market went badly wrong; prices plunged and nearly a million buyers were trapped in their homes for years because the price was lower than the value of their mortgage? A crippling 15 per cent mortgage rate had been imposed to quell an unstoppable burst of lending that was pushing a dangerous rise in inflation

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