How fit are your finances?
Welcome back!Applying for a new loan or credit card is a competitive business, with the best deals going to the people who have the fittest credit history. If you want to be in the running, you need to remember the old fable and act like the tortoise, taking time to manage your money, rather than [...]
Learn MoreA year on from the Credit Crunch, so how are we doing?
The Credit Crunch Explained
Not very well the banks still don’t trust each other and they have found it hard to raise money to lend to us. The value of houses has dropped and property valuers are down valuing our properties. The number of mortgage interest rates available today is down from around 21,000 a year ago and today there are approximately 3,500 mortgage interest rates; interestingly, the number of interest rates available in the mid 1970’s was around 5,000.
The house builders have stopped building houses and have laid off thousands of workers. The cost of petrol has risen and the knock on effect of this is the rising costs of groceries in your weekly shopping. We are now being told regularly that gas and electricity prices are going to rise by up to 35% over the next three years.
I have found a brilliant explanation of the credit crunch byThe BBC’s Economics Editor Hugh Pym. Hugh explains, What is the credit crunch? How did it start? And how does it all link together?
Also for those of us who are really interest in the Credit Crunch here is a Timeline of the Global credit crunch
The Independent on Sunday - Credit Crunch one year on. A year ago this week interbank lending froze up, heralding 12 months turmoil in the markets. So where do we go now? We asked 10 leading figures. By Sean O’Grady, Sean Farrell and Stephen Foley on Tues 5 August 2008
Your thoughts and comments are very welcome. Just click on the comments button below and leave your thoughts and views.
If you enjoyed this post, make sure you subscribe to my RSS feed!
- 6 Comments
- Tags: banks, credit crunch, housebuilders, mortgage interest rates
It looks like the builders will continue suffering until the lending improves in probably a year’s time. But I wouldnt be too hopeful on a massive rebound with so much debt on our hands.
Reply[...] Read the rest of this great post here [...]
[...] the First and Second World Wars) which was brought down by the after shocks of the 2007 Credit Crunch. It make us wonder what chance we [...]
[...] credit crunch occurs when there is not enough credit or money available. The Bank of England has reduced interest [...]
[...] reported to be spending copious amounts of dollar to get America working and functioning again. The credit crunch started in America and has spread around the globe like a virus on the [...]
[...] Bank of England and most economists do expect prices across the economy to fall further due to the recession and they believe that both of these measures for calculating inflation will be negative later this [...]