The blame game is already under way. Five masters of the universe have already fallen on their swords as part of the price of the taxpayers' unprecedented bail-out of our stricken banks. But the enforced departures of those who ran HBOS and RBS are only the start of the story.
As an angry, bewildered public search out the culprits, no one would be too surprised if Threadneedle Street comes to resemble some latter-day Appian Way, lined with crucifixions of the bankers, brokers and traders who brought our economy to its knees.
But perhaps we all bear some share of the blame. The banks and finance houses bombarded us with credit cards, personal loans, mortgages and remortgages up to ludicrous multiples of annual income, and elastic overdrafts. No one made us take the money. Many of us were happy to rack up debts comforted by the thought that ever-rising house prices would float us off the rocks of personal bankruptcy. read more
Source:http://www.telegraph.co.uk/opinion/main.jhtml?xml=/opinion/2008/10/20/do2004.xml
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. A mortgage loan is a secured loan in which the collateral is property, such as a home.
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