Here’s the latest from The Magnificent 60s
Easy credit led to a boom in the standard of living but also created global recession after the sub-prime mortgage scandal. Back in the day you couldn’t borrow money except from a bank and they only lent to people with money. To get a mortgage you needed to prove you could save, you required at least a 10 per cent deposit before any bank would loan you money for a mortgage, and you needed to go through a stiff criteria test. Even then, you were at the mercy of inflation. If you were absolutely desperately you could go to money-lenders and pay back inflated sums, the notorious “vig” of the Mafia.
But then someone invented the notion of buying on credit from largely unlicensed brokers. You could live the dream – television, white goods, carpets, furnishings, a car – even if you couldn’t afford it and you didn’t have to go through any kind of procedure to qualify…