(3). When the global housing boom turned to bust, mortgage arrears spiked. In America, the proportion of troubled loans rose from 0.2% before the financial crisis to a peak of 11% in 2012. In Ireland 18% of all mortgages are now in arrears; by value, they account for 23% of the market.
(4). 1:This crisis is partly self-inflicted. 2:In Greece and Ireland, where foreclosure is very difficult, arrears have piled up. 3:Greece has banned almost all repossessions since 2008. 4:That means the total cost to local banks of the property crash is still worryingly uncertain. 5:A recent paper from the Federal Reserve Bank of Atlanta found that slowing foreclosure in America lowered, rather than supported, property prices during the crisis. 6:Banks may need to be cruel to borrowers to be kind to the wider economy.