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!
