Credit crisis and we! At the moment, the focus is on finding solutions to the problems related to the credit crisis. We think about how to prevent our money? How to pay our rent/montage? How to prevent us for not losing our jobs.
But, in the long term, I think there are many lessons to learn from the current credit crisis.
The roots of the crisis
From 2000 onwards, and especially in and after 2005, huge amounts of money were loaned as mortgages to people in the United States with poor credit records. When US house prices began to fall, loan default rates increased, funding dried up, and these leveraged structured finance vehicles turned sour.
Actually, the credit crisis did not changed my life(style) at all. I think that most of the people don’t know what money, credit or even a budget is.
My life went on, in the credit crisis. But there are some people who lost their jobs and houses in the U.S. but never were in a crisis. There are foundations and organizations that will prevent the average of people from not having a home or something to eat. Not that I doubt that people lost their jobs because of the credit crisis, but I think that some of them is just “blaming” the credit crisis for everything.
Although some prices have risen related to the credit crisis. For instance the prices of gas, food and insurance.
I think that the government must interfere in this crisis. What would happened if the government had not interfered to save the banks? The credit markets would have collapsed (such as DSB bank). This will result a break down of the financial system. I hope everybody agrees on this.
Unfortunately, higher taxes are needed to pay for the government intervention that have re-established “stable” credit markets (so far).
After all, I can conclude that I do not need to be worried of the credit crisis. If the government interference in a right way, the economy will recover in couple of years.
And if the economy will not recover then……
I will say think about this!
Hi Liana,
BeantwoordenVerwijderenThanks for sharing your view on the credit crunch. I'll send my coment by e-mail.
Regards,
Jannie
Hi Liana
BeantwoordenVerwijderenNice piece you’re the first one who writes a quite positive piece on the credit crunch under circumstances off course
Dear Liana,
BeantwoordenVerwijderenI think you are right about what you say. Most of the people, especially in Europe, do not feel any harm of the crisis. Personally, I don't feel or see any changes since the credit crisis is active. I have not less work or less money to spend. However this might change when the student grants are abolished of course but that is still to be decided.
For certain people and companies the crisis is even beneficial. People with a good job and a high salary earn exactly the same as before and benefit from the decreased prices. In addition, the crisis provided the perfect excuse for companies to lay off employees.
To my opinion, government interference is important and necessary to recover as soon as possible.
Nice text!
KR Jordy
Hi Liana,
BeantwoordenVerwijderenyour vision about wether the government should interfere yes or no is very clear: yes.
You give a view of yourself within the credit crisis(actually it is the same for me, I do not really notice much from it).
I found one grammar mistake within your blog in the first paragraph: We think about how to prevent our money? Don't you mean protect instead of prevent?
Furthermore the amount of information within your blog is very much. You did a really good job on that for the few words you could use.
Anouk