The Credit Crunch Explained
Credit Crunch 2007
Four years after the Credit Crunch we find that the banks still don’t trust each other and they are finding it hard to lend to us.  The value of houses has dropped and property valuers are still down valuing properties. The number of mortgage interest rates available today is down from around 21,000 five year ago and today there are approximately 4,000 mortgage interest rates; interestingly, the number of interest rates available in the mid 1970’s was around 5,000.Â
Credit Crunch affected the Building Industry
House builders have only just started building houses again and still there are thousands of building industry workers unemployed. The cost of petrol has risen and the knock on effect of this has been continued rising costs of groceries in your weekly shopping. We are told regularly that gas and electricity prices are going to rise by up to 35% over the next three years.
What Is The Credit Crunch?
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 global downturn, here is a Timeline of the Global credit crunch
The Independent on Sunday – Credit Crunch one year on. Four years ago last August the interbank lending rate 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
Leave your thoughts and experiences about the credit crunch 2007 below.
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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.