FSA mortgage review: industry reaction - Telegraph: "Lord Myners said: 'Irresponsible lending helped fuel the credit crunch and also drove up house prices, making it tough for first time buyers to get into the market. This was a problem right across the world."
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Dear Mr Myners
The products were not to blame, it was what the lnders did with the mortgages after the event, they 'securitised' them and sold them on which meant they felt able to take ever higher risks in the knowledge that when the muck hit the fan they were in the clear.
This 'Ponzi' sheme was imported into the UK two decades ago but it didn't catch on until Northern Rock's main man had a few brainwaves and lost the plot, he got away with it too, but we taxpayers didn't!!
As with any crisis there is a root cause which was missed because of a "collective intellectual failure" to see outside the proverbial box.
All problems have a solution but in this case we may simply have another "collective intellectual failure" instead of root and branch reform of the system from HM Treasury down.
Yours faithfully
IFADU
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