Well, I am all for letting banks take their part of the fall, as one who (a)has bought a flat where to live, and (b) works in public sector at the moment.

For me, personally, however, it would be quite enough to make me feel secure, if defaulting on my mortgage meant that bank only takes my apartment and has to write off everything else I would owe them.

As it is now, I am stuck with a mortgage that is still manageable, but barely, and the understanding that even if I have to give back to the bank the apartment, I would still owe them for the rest of my life, as they wouldn't be able to quickly sell the apartment for the same price I bought it for.

As I understood, betting only the apartment you buy, rather than half your wage for the rest of your life is the situation in the US mortgage market [although a recent visiting friend from the US denied this, so there are conflicting reports].

If a provision such as this would have been adopted sometime at the start of the credit boom, I believe it would have been quite enough of the detterent for banks to lend more responsibly.

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Then you and I are in the same boat (by the way your English is quite astounding - it actually makes me nervous - Please understand that when I switch back to Latvian, it's just out of an obstinate desire to put into practice the little skill I have picked up from the years of falling asleep infront of Latvian grammar tables).

Phoned my mother (cute eh?)to find out about the negative equity situation in the UK (This place I bought in Latvia is the first for me), and she said that the homeless + debt-for-life situation does indeed exist - it's just most people simply file for personal bankruptcy, which is relatively easy in the UK. Maybe this is a potential defence for the likes of us should it (put put) come to that.

Still want to emphasise the moral unfairness of the attack on Public Sector workers - will be meeting M. Hansen on Thursday (he doesn't know yet) and I'll see what he has to say about it - he's recently been sticking the boot in, while wincing I should add.

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Yes, personal bankrupcy starts to sound attractive. I heard something about the Latvian govt making it more feasible for people as well -- until now it was supposedly too expensive(!) to declare yourself bankrupt unless you happened to be a Ltd.

Public sector, public sector. Honestly, I am in two minds. Perhaps because I believe I personally could still earn more or at least as much as now in private sector, if push comes to a nastier shove. But really, when I look at the organization I am in, I doubt some long needed changes in personnel would have taken place unless the budget was cut so severely. And I think it is the case in much more than my institution.

Thanks for the compliment on language. I like to practice it when possible -- I feel I don't get enough opportunity in the last years, at least on general subjects.

I do enjoy very much reading your Latvian posts. I must admit though, it is quite interesting to occasionally have to backtrack to English to understand why you were using a particular phrase or order or words. ;)

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