|
Global financial credit crunch |
|
With the American economy at the lowest point that it has been in years, we are now in the midst of a global financial credit crunch. The bad practices of the banks and other financial institutions in America have created a ripple effect that is being felt all over the world now. Having been deemed the worst crisis since the Depression, hundreds of millions of dollars have been lost causing some of the largest financial institutions in the country to collapse. As well the largest insurance company in America and the largest savings and loan were both seized by the government. These being cut off brought with it the constricting of money that was available to businesses both small and large. Along with these seizures came the reduction in shipping being done globally, which drastically affected the European banks. The decline in a variety of stock indexes was another immediate and dramatic effect of these seizures. All this being said has resulted in the huge reduction in the value of products around the world. This has become known as a global financial credit crunch, when the affects are being felt all over the globe. People are losing jobs, homes, and
many other things that they treasured. Primarily this was due to greed of bankers and lenders in a lot of people's opinions. It is expected that there will be more and more countries wanting financial assistance as the global financial credit crunch deepens. Europe and Britain have made efforts of their own to save some of the major banking institutions that have been drastically affected in their respective countries. Even with this the people of the world are eventually going to be the ones to pay the ultimate price in one way or another. There will be no way for this to be avoided as the job losses and the increasing cost of goods and services around the world will continue to happen. The vicious cycle will continue until there is a viable solution that is decided upon by the countries leaders. The people around the world can only hope that the decision makers that they have chosen or elected into power are able to come up with solutions that will benefit everyone. Not just the big businesses, but also the mid size and small business owners that have felt the negative impact as well. The Depression was a very difficult time for so many people, it is hard to imagine that we are in the situation we are in now. Hopefully the end will come quickly to the global financial credit crunch. Credit Crunch
|
No Comments.
