IF I reach old-age, I wonder whether some young person might ask me "Say, old-timer, what was it like living through the property mania at the start of the century?"
I would say it was a period when people were told to believe things that were impossible, and believed them because they wanted to.
The idea took hold that borrowing money and spending it on consumables equalled wealth creation. It was like something straight from George Orwell's book 1984' with a new slogan at the Ministry of Truth - Debt is wealth'.
Everyone talked about the need to get on the property ladder'. This did untold damage to the young generation who had to pay ridiculous prices. Their elders, who should have known better, egged them on. People came to believe once they bought a property the rise in value was guaranteed and they were effectively being paid for owning it.
Those who came early to the party, bought at a decent price and got out when they saw the top did well. Those who came late, and paid top-whack, got slaughtered.
A lot of ordinary folks fell for the idea that high house prices meant their house contained money.
It was possible to borrow more using the property as collateral.
There were TV adverts featuring people borrowing £25,000 secured on their home as innocuously as ordering a takeaway pizza. What these people failed to point out was that with a loan like this you were only three missed payments away from losing your home.
Things wouldn't have been so bad if folks had spent the money on wealth generating assets but a lot spent it on consumables - cars, holidays, plasma televisions and paying off other debt.
Yep it was good while it lasted, but it had to end one day; and it did.
Those who saw through the illusion and knew what was happening were fine. Many of those who believed the dream without question were ruined.
KEVIN HEY, Castle Road, Colne.
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