United States citizens having been accustomed to the highest living standards in the world based on a mature industrial economy refused to adjust their standard of living to the new economic reality: a large part of the US industry left town and headed overseas.

Treacherous materialistic values and a perceived necessity of "keeping up with the jones's" led to a society to become accustomed to living of consumer credit and financed possessions. Unable to pay for their luxuries and toys the Americans sought after new sources of finance and this is where greed and market demand crossed. The offer of cash on a re-financed house during a housing price bubble on the rise was simply too tempting to resist... a price fall was unthinkable, never (!) - after all, we are talking about a "bricks and mortar" business.... ;-)

The almost daily flow of "we made it hugely rich", news of the extremely young IT entrepreneurs and the house purchasing spree which followed the IPO burst in the US and Europe which in the late 90's and early 2000's led to high salaries and cash payouts did only fuel the frenzy.

Sitting near the top of the corporate banking pyramid, Fi had already read the signs "never since WWII has the American consumer taken out so much credit, the line is off the charts!". This was at the end of 2005!

More to come, watch this space...