The credit crunch is completely silly, it really is having an affect on many families, and at the moment,mine(Sophie’s)
My dad is pretty much paying out more than he’s getting in.
In simple terms, it is a crisis caused by banks being too nervous to lend money to us or eachother.
Where they will lend, they will charge higher rates of interest to cover their own risk.
This means that living conditions will become more expensive. Mortgages are on the rise and as are many other things. It can also cause a lot of reposession of houses.
SORT IT OUT!!!!!
It isn’t a funny thing and yeah, the media might blow it out of proportion and all, but unless you really know whats happening or properly affected by it, you won’t understand how bad things can actually be!
the problem started with banks lending too much money to people who cannot pay it back. with the fall of the house market this money hasnt been paid back. therefore banks are being too nervous to lend money to us or each other. this means it is very hard to get morgages. This means for us that we dont have as much money as we would, even though house prices have gone down, it is hard to afford a house because of banks not wanting to lend money out.
Clearly the credit crunch a misunderstood term because people get it confused with the “recession” which in reality are two very different things. The impact of the newly developed idea of the “recession” means that due to sloppy morgage payments; we (the youth) are going to be affected by credit cruch because of student loans/morgages and other economic payments that we will have to face in the upcoming years. However, we believe that the media does an “amazing” job in manipulating the case and scaring the lives out of us!
Clearly the credit crunch is going to be an extremely difficult time for our families, some more than others, particularly because we are paying more on our bills and for necessities like food.
In the mean time many of us have to worry about the cost of going to university, buying a house, and just generally living. It’s quite possible that many students will come out of university with a good degree but there won’t be the jobs available. This gives me all the more motivation to do the best I can so that I am in the best position to set myself up for the future.
In some ways I think we are a fortunate generation because in the future, when we come out of the recession, we will be more sensible with our finances and have learned from our mistakes (hopefully). But just now that day seems a long way off!
I personally have not been effected by the credit crunch. So maybe i dont know how bad it is yet! All i have noticed is the news… none stop credit crunch this credit crunch that.. now its all Swine flu this swine flu that. Anything to make us worry really.
I dont know what to think about the credit crunch! I dont have a mortgage, i dont borrow from banks.
In my opinion the best thing for development is trade. The problems with aid are many. Even though it can provide instant benefits to a country in debt, at war or gripped by the aftershock of a disaster, it often comes with many strings attached. Governments of developed countries could say, for example, “We’ll give you $10 million of aid, as long as you promise to buy our weapons from us.” In countries with corrupted government many of the people most in need of the aid may not experience any benefit of it, as a lot either goes into the pockets of leaders, or funds civil wars and unrealistic, unsustainable large scale projects (such as the Akosombo Dam in Ghana). Aid money is almost always owed back to the country or fund that donated it as well. Nations in dire need of financial support can plunge themselves even further into debt.
So in actual fact, the aid is much less beneficial than it first seems.
Trade on the other hand is important in stabilising the economy and providing a steady income for the people. The difficulty is that developed countries have a monopoly over the market, and that the plight of less developed countries actually suits them; it is in their interest to stay in the position of power.
If the less developed countries were to get a foothold in the market it would actually make for a more competitive market and boost trade, however there is a risk of the developing countries catching up with the developed countries, or like India and China have, actually overtaking them.
Poverty is a vicious cycle where, once you are in, it is very difficult to get out. It is my belief that it will be many years until we see any considerable development from Africa and other poorer areas of the world, due in part to the reluctance of the current superpowers, like the USA and the UK, to help other countries catch up, but also India and China who are rapidly overtaking them as economic giants, and their stubborn stances on aid, development, human rights and the environment.
So all in all, I feel trade is a more beneficial, but sadly unlikely solution to the plight of developing countries.
susannah said,
May 1, 2009 @ 9:35 am
good morning year 12
Sophie and Amy said,
May 1, 2009 @ 9:45 am
The credit crunch is completely silly, it really is having an affect on many families, and at the moment,mine(Sophie’s)
My dad is pretty much paying out more than he’s getting in.
In simple terms, it is a crisis caused by banks being too nervous to lend money to us or eachother.
Where they will lend, they will charge higher rates of interest to cover their own risk.
This means that living conditions will become more expensive. Mortgages are on the rise and as are many other things. It can also cause a lot of reposession of houses.
SORT IT OUT!!!!!
It isn’t a funny thing and yeah, the media might blow it out of proportion and all, but unless you really know whats happening or properly affected by it, you won’t understand how bad things can actually be!
srocitizenship said,
May 1, 2009 @ 9:50 am
An excellent comment girls, it is very importan that we know what the actual effect are before we invest or take out loans etc.
Miss Robinson
Sam said,
May 1, 2009 @ 9:46 am
the problem started with banks lending too much money to people who cannot pay it back. with the fall of the house market this money hasnt been paid back. therefore banks are being too nervous to lend money to us or each other. this means it is very hard to get morgages. This means for us that we dont have as much money as we would, even though house prices have gone down, it is hard to afford a house because of banks not wanting to lend money out.
Samera and Raz! said,
May 1, 2009 @ 9:53 am
Clearly the credit crunch a misunderstood term because people get it confused with the “recession” which in reality are two very different things. The impact of the newly developed idea of the “recession” means that due to sloppy morgage payments; we (the youth) are going to be affected by credit cruch because of student loans/morgages and other economic payments that we will have to face in the upcoming years. However, we believe that the media does an “amazing” job in manipulating the case and scaring the lives out of us!
Matt said,
May 1, 2009 @ 9:58 am
Clearly the credit crunch is going to be an extremely difficult time for our families, some more than others, particularly because we are paying more on our bills and for necessities like food.
In the mean time many of us have to worry about the cost of going to university, buying a house, and just generally living. It’s quite possible that many students will come out of university with a good degree but there won’t be the jobs available. This gives me all the more motivation to do the best I can so that I am in the best position to set myself up for the future.
In some ways I think we are a fortunate generation because in the future, when we come out of the recession, we will be more sensible with our finances and have learned from our mistakes (hopefully). But just now that day seems a long way off!
Siobhan said,
May 1, 2009 @ 10:01 am
I personally have not been effected by the credit crunch. So maybe i dont know how bad it is yet! All i have noticed is the news… none stop credit crunch this credit crunch that.. now its all Swine flu this swine flu that. Anything to make us worry really.
I dont know what to think about the credit crunch! I dont have a mortgage, i dont borrow from banks.
Matt said,
May 8, 2009 @ 10:02 am
AID vs. Trade
In my opinion the best thing for development is trade. The problems with aid are many. Even though it can provide instant benefits to a country in debt, at war or gripped by the aftershock of a disaster, it often comes with many strings attached. Governments of developed countries could say, for example, “We’ll give you $10 million of aid, as long as you promise to buy our weapons from us.” In countries with corrupted government many of the people most in need of the aid may not experience any benefit of it, as a lot either goes into the pockets of leaders, or funds civil wars and unrealistic, unsustainable large scale projects (such as the Akosombo Dam in Ghana). Aid money is almost always owed back to the country or fund that donated it as well. Nations in dire need of financial support can plunge themselves even further into debt.
So in actual fact, the aid is much less beneficial than it first seems.
Trade on the other hand is important in stabilising the economy and providing a steady income for the people. The difficulty is that developed countries have a monopoly over the market, and that the plight of less developed countries actually suits them; it is in their interest to stay in the position of power.
If the less developed countries were to get a foothold in the market it would actually make for a more competitive market and boost trade, however there is a risk of the developing countries catching up with the developed countries, or like India and China have, actually overtaking them.
Poverty is a vicious cycle where, once you are in, it is very difficult to get out. It is my belief that it will be many years until we see any considerable development from Africa and other poorer areas of the world, due in part to the reluctance of the current superpowers, like the USA and the UK, to help other countries catch up, but also India and China who are rapidly overtaking them as economic giants, and their stubborn stances on aid, development, human rights and the environment.
So all in all, I feel trade is a more beneficial, but sadly unlikely solution to the plight of developing countries.