Government/Bank or joe public at fault??

[pace]

The last time official interest rates were at 6% in 2001 household dept was at $425 billion and now its reported at around $900 billion.
Now is this the government fault for allowing banks to lend out so much money to anyone who seemed to put there hand up. And now the banks deciding to bring it back to a sustainable level and will have the power to force people who cant pay to sell. It just seems as if the government has let this slide, creating what looks like big money worries for a lot of people.
Or is it our faults that we in general are to easily led and tend not to look so much into the furure as to problems that might arise.
Personly I would have liked to have seen the banks regulated on just how much credit they can give. As i think we havent yet seen the last of the interest rate rises. Good luck to anyone in trouble out there.

[Culprit]

Banks can lend you 100% of your mortgage. While rates are relatively low at 6% compared to 19% years ago. Back then you could only borrow 25% of your income. Now as long as you can repay the loan they do not care what you earn. The banks want you to default as they get the cost back on the sale of the house and the person still has to pay off the shortfall. Hence banks billion dollar profits get announced.
The pressure on consumers is immense. If you can’t afford it, forget it. You are better off saving your money.


The banks are self regulated. Say no more.

[Robert Walls (not really)]

The Bank Shareholders are too blame.

Profit, Profit, Profit....