How (not) to fix a housing crash

Ben Bernanke may have assured US politicians that the US sub-prime mortgage collapse is 'under control'. However, he has a lesson to learn from the last UK housing crash about the dangers of cheap money.

Ben Bernanke told politicians in Washington last week that the collapse of subprime mortgage companies had been 'contained'.

Perhaps Dr. Ben was just thinking of Fremont delaying its fourth-quarter results...or New Century Financial (NEW) having to restate its earnings for the first nine months of last year.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Adrian has written all things gold related from if it’s worth buying, what the real price of gold should be and what’s the point of gold for MoneyWeek. He has also written for other leading money titles on his gold expertise including Business Insider, Forbes, City A.M, Yahoo Finance and What Investment Magazine. Now Adrian is head of the research desk at BullionVault, a physical market for gold and silver for private investors online.