If the Financial Services Authority succeeds in bringing in rules to stop lenders lending to people who can't repay their debts, house prices will collapse, according to the Council of Mortgage Lenders. A momentary pause here while we consider that. Okay... we'll continue. But reckless mortgage lending's a thing of the distant, pre-credit crunch past? Yes?

In July it pointed out that so-called non-verified loans still made up 43% of all home loans granted in the first three months of 2010.

Quick, someone call in the regulator. There's some obvious that needs stating.

The regulator argued that this practice exposed the borrowers to debt in their eagerness to buy a home.

That should do it.

Seriously, a situation in which only reckless lending is what's supporting what things cost? It would be funny if it wasn't so frightening.

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