The Credit Crunch can be bewildering. (I’m glad the derivatives market is not on the A Level syllabus) I have to admit that 18 months ago, I had little idea about terms such as CDOs and ‘Credit Default Swaps’
Outside of Wall Street and the City, I’m sure most people had little idea either. Yet, despite being a mystery to the wider public, the Credit default swap market had (according to the International Swaps and Derivatives Association) ballooned to more than $45 trillion by mid-2007. If it is possible to put any meaningful perspective on this figure, Mongolia had a total GDP of $3.905 billion (2007 est.) The GDP of the UK, is a little over $1 trillion.
18 months ago, I would never have predicted so many high profile banking firms would have gone bankrupt or required bailouts from the government. The credit crunch has certainly been a shock to the global financial system.
These are some essays on the Credit Crunch.
- Whose to Blame for Credit Crunch?
- Problems of Credit Crunch
- Banking Sector and Moral Hazard
- Credit Crunch Explained
- Debt in the US
- Cash for Trash and Bank Aid (satire)
- The Cost of Government Bailouts
- Problem of Collapsing Share Prices
- Short Selling explained
- The Free Market Fails
- Future of Banking In UK (After Lloyds TSB HBOS merger)
- Merger of HBOS and Lloyds TSB
- Financial System Collapse
- Banks in Trouble Government to rescue
Economics
- Unemployment in the UK – how the credit crunch is affecting the real economy
- Credit Crunch and National Debt
It Could Be worse
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[...] Essays on the credit crunch at Economics Help [...]
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Much is made of help available for the credit crunch ?
What exactly is out there to help normal families ?
I need to know one of the responses by goverment to the crises has been to take a stake in a number of banks/bulding societies. how does this effect the mix of the UK economy.
A credit crunch (also known as a credit squeeze or credit crisis) is a reduction in the general availability of loans (or credit) or a sudden tightening of the conditions required to obtain a loan from the banks. A credit crunch generally involves a reduction in the availability of credit independent of a rise in official interest rates. In such situations, the relationship between credit availability and interest rates has implicitly changed, such that either credit becomes less available at any given official interest rate, or there ceases to be a clear relationship between interest rates and credit availability (i.e. credit rationing occurs).
I have been ready, in anticipation, for some time now, for the credit crunch which is upon us.
I believe that the real cause of this,was the second world war,as we have been operating in a state of bankruptcy since then.
War is the most expensive thing that mankind indulges in and the only people that win, are the private bankers that lend the offending governments the money for war, plus interest.
Rothschild is to have allegedly made $200,000,000 as a result of world war two.
Heaven only knows what this figure is by today’s standards.
I see the only solution is to generate a passive income, so that you no longer trade time for cash.
Many don’t know how to do this, but one method is to do this on line.
This can be a minefield as there are many individuals that will sell you a product which is really “information overload” and leaves you confused as to how to make an income on line.
In essence you need:
a product, put it on a website
and drive customers to it.
The video presentation on my site will show you exactly how to do all three stages.
[...] Financial / Economic Crisis Explained How Can A few bad mortgages in the suburbs of Florida lead to the Bankruptcy of a country like Iceland? What has caused the stock market to fall by 40% -the worst decline since the Great Depression? And why has the credit crunch pushed the global economy into recession? A concise explanation from a young Economics instructor in Oxford, England. See related series of essays here. [...]
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