Saturday, October 11, 2008

Credit Crunch

Well not a day goes by currently without there being headlines spread all across the UK media about the current financial woes which are currently bestowing themselves on the world's markets, Governments and people.

In some ways I feel a bit removed from it all - so far I haven't felt the effects too much because I rent where I live, I use public transport, and I work in the public sector (not Local Government!). So far my bank has just managed to avoid falling through a hole. But food shopping has definitely become more expensive in recent months...that I have noticed on the monthly shopping bill.

But it's everywhere you go and everyone seems to be talking about it. The media certainly don't help and have exacerbated the problem. But that is the age we live in now and it is an integral part of how we exist and communicate with each other, and to make some sense of the world we live in.

Well anyway, I found this helpful link on the BBC website which explains what all these financial and economic terms actually mean - we are hearing them all of the time in the UK but maybe you're not exactly sure what the journalists and commentators are always talking about.

http://news.bbc.co.uk/1/hi/magazine/7642138.stm

At least now I know exactly what the term 'Credit Crunch' specifically means - banks have stopped lending to one another because they're not sure how much/if they have any money to actually lend! This has caused loan rates to rise, and it can now be stupidly hard for people to secure a loan/mortgage deal. (There goes me buying a flat/house in the foreseeable future then!). And this is why banks are now collapsing and asking for money from Governments. Well, what Silly Wally Bankers we have.... ;)

There's some fascinating terminology on this site as well, including:
- Bear Markets and Bull Markets
- Dead Cat Bounce
- Spiv (spin-off from 2WW flashy chancers who dealt in the black market, now being used to refer to chancy 21st Century traders)

It looks like it might take a while indeed for economies to recover properly from all of this.....seems like everyone is waiting to see what will happen. A bit of belt-tightening, prudence and appreciation of the simpler things in life in the meantime won't do anyone any harm I hope.

1 comment:

Anonymous said...

That's a very useful link for the likes of me who finds the financial jargon a completely mysterious turn-off.

Also, I don't like the attitude to animals - bulls, bears and cats of the world unite against being involved. And what I think you really meant by Silly Wally Bankers was Silly Billy W**kers.