We look at the latest credit data, which is all about booming mortgage lending. Given the rate of change of credit, home prices are set to rise higher. Totally the wrong time to remove responsible lending obligations from the banks!
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Hi Martin
Very much enjoy your show. Just one question that I cannot work out is why do banks lend money to people who they know cannot possibly pay it back.
Cheers Michael
Simple their risk assessment is about risk of loss to the bank, not to the borrower. If there is equity, the banks have no risk.