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massive interest rates to reflect the risk of our punt largely because it was small, and therefore, by their definition vulnerable. (I well remember paying 15% on my house mortgage - and that was cheap compared to unsecured loans).

I think everyone was paying double-digit interest rates for mortgages in the 1980's, not just "peripheral" economies.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Sat Feb 6th, 2010 at 08:24:56 AM EST
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There was certainly a huge premium on Irish rates compared to UK rates at the time - I don't know anything about other EC rates at the time.

notes from no w here
by Frank Schnittger (mail Frankschnittger at hot dotty communists) on Sat Feb 6th, 2010 at 08:30:17 AM EST
[ Parent ]
Britons sometimes complain about how hard it was to get a mortgage back then and the high interest rates and down payments, and how wonderful financial engineering has been for allowing people to finally get on the property ladder. (The last time I heard this said with a straight face in front of a roomfull of people was a couple of weeks before the Lehman Brothers collapse...)

Anyway, Volcker raised interest rates above 20% in 1982 and that propagated to the whole world...

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Sat Feb 6th, 2010 at 08:45:31 AM EST
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