I really disliked this program I saw yesterday. It somehow portrayed the very bank that lends the money as the ones responsible for borrowers' misfortune. If you borrow money, you have to pay it back!  Its simple.  To somehow try to blame banks for lending seems ridiculous.

I know why this programme is being aired. Let me take you back to September 2007.  Everyone was predicting a crash in the property market by the end of the year.  Someone at ITV thought right lets make a programme about how lender's have lent recklessly and then blame the lenders for the situation we are in now.

It would have been perfect!  We would be in to 2008, property prices would have crashed and the programme would have got loads of viewers.  However its airing has back fired. This program is completely out of place with current conditions.  Yes there are people in trouble with meeting their loan commitments.  But there always will be!  About 300 people get repossessed every day, even in the good times!

Anyway I reckon the sort of people who punt these sort of programmes are always over 50 years old.  Old enough to remember the crash of the 1990s, felt the pain and then think its all coming again. Interest rates are low, they are going even lower and debt is currently manageable for 98 per cent of borrowers.  The other 2 per cent will always get in trouble and will always have a good story to tell.

The good thing is banks will always lend to people they believe are a good bet. If they did not they would go bust.

Ajay

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Posted on: 26th Feb 2008