Sub prime explained.

[player1]

Most of us have heard of sub prime ? Basically it's the reason North wreck went tits-up. I spend most of the day on financial sites and first became aware of the problem in the US some months ago. The reasons behind this crisis are often only described in banking world jargon. This BBC link is probably the easiest to understand. It explains how banks here, and all over the world got round complex lending rules. Boring ? Well no ! Because this reckless lending has caused a massive asset bubble in housing. All bubbles burst and this one is no exception.

http://news.bbc.co.uk/1/hi/business/7164898.stm

well this country is jsut a mini america these days so hopefully our house prices will crash too. At least then i can actually afford to buy one

[Stevie]

For me , this kind of thing sucks bigtime , I have 2 girls and their families struggling to pay morgages and 2 boys @ Uni , its a nightmare for any of the younger generation trying to get a foothold on the housing ladder , even a half decent flat or terraced house costs 70 grand + and unless your very lucky and get a good secure job it will take 2 wages to make a go of it .

yup tell me about it