Just another turn in the "cycle" which has been going on for well over 150 years. The media love to build up the stories, relying on people's short memories.
To an old codger like me, the late 1980s/early 1990s negative equity crisis happened only yesterday.
There are people for whom this will be a disaster - those who cannot keep up repayments because they are over mortgaged, those who have to move for work who have to go to a more expensive part of the country and the developers who have forced prices to an unsupportable level, ably aided and abetted by the banks - who will want their money back from developers and buyers alike and will cry foul if those they should have never lent to in the first place can't stump up on demand.
|