Banks just don’t understand

Story link: Banks just don’t understand

The property market in particular was spiraling out of control and faith in the market as a long term investment has been the norm for many people. The banks could of sustained the growth in the market by some simple rate fluctuations.

Banks just don’t understand

The Bank of England did not understand the severity of economic problems before the current financial crisis, its deputy governor says.
Sir John Gieve told the BBC that the Bank knew “crazy borrowing” was taking place and the price of houses and other assets was rising unsustainably.