Getting some perspective on the problem of mortgage arears
We have a serious mortgage arrears problem. But gross exaggeration of the problem won't help to solve the problem.
Back in November, Morgan Kelly frightened us all when he told us: "If you thought that the bank bailout was bad, wait until mortgage defaults hit home". Around that time, Constantin Gurdgiev, Brian Lucey and nine others wrote an article calling for "a debt forgiveness mechanism ... with an expected total cost to the entire system of circa €37bn to €49bn".
So how bad really is the mortgage problem?