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We ain’t seen nothing yet…

Lord Adair Turner’s recent review, a regulatory response to the global banking crisis, was according to the Conservatives, both a “devastating critique of the last 10 years of economic policy and financial regulation” and a “withering critique of its failings”.

The City was spared an expected banking revolution but what it and the mortgage market got was perhaps more a stay of execution.

The regulator knows more stringent lending rules could reduce the chances of borrowers falling foul of repossession and protect banks against defaults.

But it also understands the flipside, that tighter lending criteria only makes it harder for first-time buyers and then the whole market suffers.

With the Financial Services Authority’s review of the mortgage market expected in September, the Turner review made me think of Canadian rock band Bachman Turner Overdrive’s classic 1975 hit You ain’t seen nothing yet.

Just check out the lyrics:

“I met a devil woman, She took my heart away, She said I had it coming to me, But I wanted it that way, I think that any love is good lovin’, So I took what I could get, She looked at me with big brown eyes, and said You ain’t seen nothing yet, B-B-B-Baby you just ain’t seen n-n-n-nothing yet, Here’s something that your never gonna forget.”

And we will never forget. The devil woman in this instance being the incredibly lax banking system that brought about the crisis and with September just six months away, it’s a fair bet to say we ain’t seen nothing yet. Life might be about to get a whole lot tougher.

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