How did the credit crunch start? What’s going to happen?
I have an idea what the credit crunch is all about but I’m not sure I really understand it. Can anyone explain to me in layman’s terms what started it all, how it’s going to affect the average person and what are the predicted long-term effects of so many people being out of work? Is this is global problem?
Just want to understand it all a bit better, cheers guys.x
oh beacuse of silly banks !
3 Responses to “How did the credit crunch start? What’s going to happen?”
oh beacuse of silly banks !
Comment made on April 14th, 2009 at 7:53 amReferences :
basically banks lent way to much to people on mortgages and loans and stuff. say a person would ask for £100,000. they would give them around £115,000. the people then couldn’t pay as much back as well as interest. its defiantly a global problem! the average person will probably be less likely to get a job and stuff. i’d say in a bout 4 years it will have sorted itself out. hope i helped!
Comment made on April 14th, 2009 at 8:08 amReferences :
all to do with the cost of things. Banks gave too much, and people couldn't pay them back. Now we the tax payer have to suffer and pay back the country's debt. Companies can't afford to keep their business running as people arn't spending.
For example; car industry. People just arn't buying the high performance cars as they just can't afford to run them. The consumer can't afford it as they were in debt in the first place with the bank. Can't afford to run the cars due to tax and fuel prices. Car industry has suffered as people arn't buying, therefore production has cut down. And when motors arn't being made, staff arn't needed. Therefore lay offs.
Fuel tax prices are a huge blame also…it hit the aviation industry too.
Everyone gets affected. It's to do with the flow of the countries spending.
Easiest way to think the through…if your in a job where something is always gonna be needed/happen like the armed services, police, fire or paramedics…those jobs are secure. Government funded.
If you work in retail for instance…you can also be affected. People just arn't spending the money like people use to do. They are broke. I think the credit crunch is a win or loose situation. You can loose your job, house, car, etc and become bankrupt. In the meantime you can also pick up fantastic deals. Like houses or cars…if you got the money and new into this game.
Best way to survive, watch your spending and be patient when it comes to financial purchases.
The last post has got it explained in a nut shell. 4yrs should sort it. Today tax dropped by 2.5% to encourage spending…but we will pay for this at the pumps. Its lunacy!
Comment made on April 14th, 2009 at 8:56 amReferences :
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