Bank of Mum & Dad a "giant ponzi scheme"

By Leith van Onselen

History doesn’t repeat but it sure does rhyme. A decade after the Global Financial Crisis (GFC), 100% mortgages have returned to the UK via the ‘Bank of Mum & Dad’. From Wolf Street:

[The UK’s] all-important housing market is beginning to show signs of strain. In April house sales were down 9.4% on the previous year. In the UK’s most valuable market, London, house prices had their worst month since 2009, slipping 0.7%, according to the latest figures from the Office for National Statistics (ONS).

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

Bank of Mum & Dad a “giant ponzi scheme”