In the UK we had a property bubble. House prices rose but wages didn't rise with it. Lack of banking regulation meant many people bought mortgages which were up to 10x their actual yearly income. When interest rates rise, it is inevitable they will default. This is the crux of why interest rates are so low (0.5% and have been for 18 months) at the moment.
![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png)
timeasmymeasure
no subject
Date: 2011-03-23 11:50 pm (UTC)