Houses are too expensive

I am watching a programme on BBC about the credit crisis, not an inspiring piece of journalism more populist than insightful.

However what beggars belief is the representative of the Council for Mortgage Lenders suggesting that we need to get the housing market going again, and everything will be all right.

What! Have we all missed/forgotten the fact, yes fact, that this credit crunch is the result of the housing bubble, call it "sub prime mortgages" if you like, it's the same thing. Lending money to people who couldn't afford it based on the assumption that house prices will continue to rise at a faster rate than the economy is clearly not a long term strategy.

Sadly it is a strategy that successive UK governments have been pursuing since about 1979. This year we are all paying the price for all that excess.

Thatcherism/Reaganomics, call it what you will, I just hope it has died.