Saturday, 21 March 2009

Nobody saw this coming !?!?!!?

Of all the things said about the current financial crisis the least credible seems to be "we never saw it coming".

My father's a vicar, and by no means a financial wiz, and even he saw it coming - for property prices to be sustainable, the average man has to be able to afford the average house - this should be a pretty simple calculation - mortgage = 3 * income - as soon as this started getting stretched to 3.5, 4 or even 4.5 times it should have been obvious.

But even without applying a formula, just the number of TV programs telling us how unaffordable housing was becoming should have given the game away.

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