tag:blogger.com,1999:blog-1141932539860553199.post9200005996839263313..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: Hair splitting/What can't speak can't lieMark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1141932539860553199.post-85584065482007109402010-08-13T20:08:01.370+01:002010-08-13T20:08:01.370+01:00Well, if I could have borrowed more than 2.5 times...Well, if I could have borrowed more than 2.5 times my salary when I took out a mortgage, back in the mid eighties, I would have done (and I was buying mainly because I couldn't find anywhere decent to rent, not just because I saw it as a good investment). IMHO ridiculously high house prices are a direct result of banks allowing people to borrow more (i.e. low interest rates). I don't think much temptation or pressure was/is required.Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-69821858432987837002010-08-13T19:15:57.788+01:002010-08-13T19:15:57.788+01:00B "Only because the banks let them do so.&quo...B <i>"Only because the banks let them do so."</i> is putting it mildly. I would say because the Home-Owner-Ist coalition has pressurised/tempted them into doing so.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-70436548934969077342010-08-13T17:52:23.021+01:002010-08-13T17:52:23.021+01:00"Average mortgages now are much higher than b..."Average mortgages now are much higher than before, because people have generally decided to put more of their salaries into housing"<br /><br />Only because the banks let them do so. If the interest rates were higher, the multiple of their salaries that people could borrow would be lower. The proportion of salaries paid in interest has remained pretty constant in the long term (see chart 3).Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.com