What are the effects of the credit crunch on the UK as a whole?

by: admin Sunday, March 8th, 2009

What are the effects of the credit crunch on the UK as a whole and what has the government done so far to help?

It has rendered Companies which were thought to be on a sound financial footing highly vulnerable, some have already gone others will follow.

The most important thing to keep UK plc afloat is to keep the bamking system working - if that collapses so does everything else.

The government has tried to ensure that this happens by
Nationalising Northern Rock
Taking a stake in other banks
Effectively forcing the so-called independant Bank of England to cut interest rates
Encouraged Joe Public not to remove his savings from the banks by extending the bank deposit guarantee scheme

Whether this is enough and will prove effective only time will tell - the longer everything continues the more likely it is we will come out the other side and look back with relief that the mess caused by the greed of certain bankers is finally over.

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One Response to “What are the effects of the credit crunch on the UK as a whole?”

charlie Said:

It has rendered companies which were thought to be on a sound financial footing highly vulnerable, some have already gone others will follow.

The most important thing to keep UK plc afloat is to keep the bamking system working - if that collapses so does everything else.

The government has tried to ensure that this happens by
Nationalising Northern Rock
Taking a stake in other banks
Effectively forcing the so-called independant Bank of England to cut interest rates
Encouraged Joe Public not to remove his savings from the banks by extending the bank deposit guarantee scheme

Whether this is enough and will prove effective only time will tell - the longer everything continues the more likely it is we will come out the other side and look back with relief that the mess caused by the greed of certain bankers is finally over.

References :

Comment made on March 9th, 2009 at 3:10 am
 

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