Wednesday Apr 16th 2008
The Economy, an Alternative View
Let’s go back to the summer of 2007. Remember that, when the economy was growing nicely?
But at that time, there were several things underneath the surface that were of serious concern to economists and commentators. These problems included:
- Excessive borrowing by consumers and by banks
- Consumers were getting 125 per cent mortgages and borrowing way over their ability to pay
- House prices were growing unsustainably fast
- First time buyers were being priced out of the market
- Imports were too high and exports too low leading to a huge balance of trade deficit
- Interest rates were comparatively high at 5.75 per cent
Coriolanus | 4:19pm |
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