The almost contempt for those who have made use of ‘cheap credit’ is palpable. What were people supposed to do, turn down a 2% mortgage and say, no thanks I’d like 15% like the ‘good old days’ please. Of course not!!
It is the change from this point that is going to really hurt people, regardless of what interest rates were 40 years ago. Who would have bought a home planning for a 150% interest rise? No one.
I despise the ‘they knew it would come to an end’ mentality. A young family in their 20’s or early 30’s will have been looking at the situation in front of them, not adult in these mythical times where people were ‘living in the real world’, with some contingency where possible, but no where near enough to account for drastic changes. The banks are at fault for facilitating, not the normal people living in the modern world.
Perhaps if all those home owners from the times of 15% interest rates had sold their properties without profit beyond inflation then the market would squeeze the life out of the young now. Any takers? Thought not.