November 13, 2008

The problems arising from the credit crunch

For some when the credit crunch began in the US, it meant very little for most people. In fact, you can expect that because it was happening over there, it would make no difference for us over here in the UK, how wrong they were.

Even now the we are still feeling the just the tip of the giant iceberg which is set to sink the financial ships that were foolish enough to sail in the treacherous waters of subprime debt and other high risk venture that could pay off big, if only they went right.

The fact is for most people in the UK the fact that our banks have been so deeply affected by this is still a shock, were we foolish enough to feel that our banks just used their money to help borrowers in the UK. Well yes, we did and even now, the full extent of the damage is not fully known.

Source [RC Analytics]