Spain's Ordonez - monetary policy to blame
Miguel Fernandez Ordonez, the governor of the Bank of Spain, has blamed central banks' reluctance to raise rates in the wake of the dotcom crash as the principal cause of the current crisis.
Speaking in Barcelona, Ordonez said that low rates allowed firms and households to become highly leveraged. As soon as interest rates rose, and credit became more expensive, defaults rose as homeowners could no longer meet mortgage payments, he said.
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