The credit crunch was partly caused by the greed of homeowners like many of us on this site, pushing banks for loans above what was sensible, to afford houses at ridiculous prices, and the greed of the banks in agreeing to lend the money. Now suddenly everyone is scared to lend anything.
The rising price of food and oil triggered it all off by squeezing people's finances so that more folk couldn't afford their mortgage payments and lost their houses and then suddenly the banks took a sober look at their loans and were horrified to see the situation they'd gotten into.
The whole modern finance system relies on confidence and a steady flow of money round and round. That's what's stalled and it will take several years for confidence to return.
i think the credit crunch is worrying a lot of people,im already feeling the effects of it now,my bills are coming in and are more than usual,and im dreading winter fuel bills as its something i have to use as i have a child who needs to be kept warm, my food costs me more now im having to spend about £10 more a week,and i went to get a bus the other day and the prices have gone up 70peach way!! the thought of having the worry for years to come is a very scary one.
I feel scared and vulnerable because of it, especially when it is fairly obvious that it is going to take a good few years for the economy to recover. You do wonder whether it is borne out of greed when there should be enough money and resources to go round everyone, and furthermore you would whether the governments and banks could see this coming for quite a while, even if they didnt know the full impact of it. The problem is that it is going to effect or is effecting everything, for instance the property market, employment, the health service and the future generation, as it is highly likely to effect the number of children people have or whether they in face have them at all.
The credit crunch and rising cost of living is really beginning to hit me now! I have seen the spare cash in my pocket getting less and less with each passing month, and that is with being a non-smoking pedestrian! If things carry on as they are, I’ll be living hand to mouth by the end of the year. Already this year I have decided not to go on holiday this year and started to budget for a lean Christmas, setting a maximum spending limit for each person. 2009 is going to be the darkest year for many, and I don’t see a light at the end for many years.
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