It is blame time and everyone wants to point the finger at somebody. The financial services, and especially the banks, stand directly in the firing line, labelled greedy and arrogant.
In the past it was a bank rule that you may not borrow more than you could pay back during the life of your work. The rate was set at two to two and a half times your annual salary and that did not include any other income into the home. There had to be proof of name, address and earnings and most people were married, had children and wanted to own their own property.
Ten to twelve years ago, we saw a change to almost irresponsibility from the banks and other lenders, and from the new age earners who had arrived through a system that had no thought for tomorrow, never mind the future. Their thought process was to live for now and to not even consider the consequences.
It became a feeding frenzy for the banks - personal loans for property, cars, small businesses, holidays, home improvements and sabbaticals. Banks were offering four to six times a person's declared annual salary, without any proof required, simply sign here, and, while you are at it, take a credit card as well and are you sure you would not like a bit more to take a well-earned holiday? Words of reassurance were not to worry, estate agents are solid in their belief that property will continue to rise by well over 10% a year, and these are boom times and now is the time to get into the market.
However, the wise old Chinese used to say nothing is forever, and how right they were. Banks are not forever, all their money is gone and they now want back what they have lent, but those who borrowed the money no longer have it and the housing market is floundering dramatically and jobs are being cut left, right and centre.
It does not take a rocket scientist to realise implosion is imminent, both, commercially and privately. The government are promising that they will sort it out but does anyone have any confidence in them? They knew the debt that was building in the nation, but continued to fuel the fire.
Overseas aid and involvement in various projects amounts to billions of pounds and these, along with home institutions, dispose of money quicker than it comes in.
Surely, would it not have been far better for those who control such vast amounts of money to have been involved in large financial institutions, and not spent most of their time galloping about the streets strewing money left right and centre, largesse pointedly aimed at securing votes and power.
We would all do well to remember the dictum of Mr.Micawber, "Income 1 pound, expenditure 1 pound 6 pence, result, misery. Income 1pound, expenditure 19 shillings and 6 pence, result happiness". Simply on the basis of Mr.Micawber the government stand accused and should be called to account.
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