The party is over

It isn't hard for an economy to grow when homeowners are supplementing their income by 5-8 percent with loans collateralized on rising housing values. However, that scam is over. Property prices are crashing, home equity is evaporating and the banks have turned the tap off.

For far too long, the UK depended on home equity loans to sustain consumption. The party is now over. The hangover has just begun.