Which time/event would you pick out as the start of the credit crunch?
Obviously it had been building up, but it wasn’t very gradually, so which date/event would you say was the beginning of the credit crunch?
I mean worldwide, not for each individual person
http://www.visualizingeconomics.com/2008/10/02/anatomy-of-a-financial-crisis-september-2008/
The credit crunch can be tracked by the fall in the interest rate on short terms government bonds because it indicates people seeking a safe assets and loss of faith in the banks. The crisis began when it became know that Lehman was looking for a buyer, and worsened when they declared bankruptcy and their money market funds lost 3% of there value causing a large outflow of funds from banks and money market funds.
5 Responses to “Which time/event would you pick out as the start of the credit crunch?”
The day when you move out of your parents' house to pay your own way or the day you open your first bill, whether it be the water bill, the gas bill, electric bill, etc. That's when reality hits you with a bang, and that's when you suddenly realize you're an adult (who has to get a job).
Comment made on March 9th, 2009 at 12:03 pmReferences :
when this election started!!! To make people vote the way the government wants them too!!!
Comment made on March 9th, 2009 at 12:16 pmReferences :
With the start of the creation of fiat money and fractional reserve banking .
Comment made on March 9th, 2009 at 12:41 pmReferences :
http://www.visualizingeconomics.com/2008/10/02/anatomy-of-a-financial-crisis-september-2008/
Comment made on March 9th, 2009 at 1:29 pmThe credit crunch can be tracked by the fall in the interest rate on short terms government bonds because it indicates people seeking a safe assets and loss of faith in the banks. The crisis began when it became know that Lehman was looking for a buyer, and worsened when they declared bankruptcy and their money market funds lost 3% of there value causing a large outflow of funds from banks and money market funds.
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In the U.K. I put it back to the early 70s when it was compulsory to have a bank account to receive wages. Then the easing of credit rules so any and everyone lives on the never-never. I have mentioned before that if everyone in the U.K. took their money out of their accounts there would not be enough to cover it. It is like Orwell’ss 1984 we all live on credits. LET THE BANKS GO BUST then we can all get back to cash so when we spend £10.00 we know what it took to earn it.
Comment made on March 9th, 2009 at 2:04 pmOur politicians are next to useless! How many have well paid places on boars of banks? Just more pigs for the trough.
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