It's horrible to think of people facing repossessions, but when we read that UK consumers owe "more than £1,000 billion, exceeding the debts of Africa and South America put together" what do we really expect? We knew we had 70% of Europe's consumer debt, but to learn we owe more than two continents combined really puts the problem in context.
House prices have been rising faster than earnings. Ultimately, that's not sustainable. The Economist estimated months ago that UK housing was 60% overvalued on average.
Labour's economic "success" is a mirage. The liberal reforms of the Thatcher years have been steadily eroded. We have not been getting richer as much as we have been spending borrowed money against overvalued assets. That gave us the appearance and perhaps even the feeling of success, but the reckoning was bound to come eventually. As belts tighten and retail-driven jobs are lost, the true costs of the burgeoning British state - 800,000 unproductive posts added since Gordon Brown took the financial reins - will become painfully apparent.
Telegraph | News | Home repossession orders soar by 66 per cent as debt mounts