Hi falkenberg,

I agree with you. If anyone does banking badly they can crash the system.

In the US the banking system did Real Estate really badly. In California the decided it was sensible to lend people 9 times their annual salary with no money down! They also didn't require people to pay even the interest on their loans as part of their regular payment. The excess unpaid interest just rolled into the growing principle.

The could only do this because there was a market of EVEN STUPIDER investors to sell these idiotic loans to.

What happened? Well house prices spiked of course!

BECAUSE, houses don't cost what people can afford. Houses cost what banks will LOAN! That is how supply and demand work in real estate.