Hi Rebel,I noted this:KATE THOMPSON: So when we’re putting down...

Hi Rebel,

I noted this:

KATE THOMPSON: So when we’re putting down a customer’s income, we are allowed – we were allowed to use capital growth. It was projected income. It’s not disposable income. But we were allowed to use it.”

How crazy is that?

Guy, I don't know how big the problem will end up being, or what it will mean to the banks but I know it certainly does stink like a dead rat. What I take from it all, regardless of whether this issue blows up or not, is that the last few years before 2008/09 were crazy and unsustainable and are unlikely to happen again for a long time. Mania for credit on this scale is gone, this will be felt on all asset markets.