Credit crunch !

People are losing their jobs, companies are being shut down… overall the world economy are experiencing a downfall. People are talking about the credit crunch….For all those people who are not aware about the present credit crunch , it's here the shadow and basic elements and factors of the credit crunch that eventually leads to a global or non-global recession! It’s already all around us ! It can’t be avoided and it’s happening, the economic slowdown. Then again , how unpredictable the situation gets.

The credit crunch is an economic condition in which investment capital is difficult to obtain. During a credit crunch, banks and investors become wary of lending funds to corporations, which results in the mounting prices of debt products for borrowers. Currently, the sub prime mortgage crisis is an ongoing financial crisis characterized by constricted liquidity in global credit markets and banking systems triggered by the failure of mortgage companies, investment firms and government-sponsored enterprises. There is often confusion between the two terms - recession and credit crunch but they are not the same. A recession usually refers to two successive quarters of negative economic growth while a credit crunch is a different term which can be a part of a recession. According to economics experts, one of the reasons which leads to a credit crunch is a sustained period of careless and inappropriate lending which results in losses for lending institutions as well as investors in debt. A reduction in the market prices of previously ‘over inflated’ assets also result in a credit crunch.

It's been a long time since we have seen such a passionate display of feelings about jobs and the perilous state of the economy. Consumers are well-organized and social networks allow single-issue campaigns against individual companies to be championed in a way that could never have happened in this millennium . Expect some of the unrest from the wall streets of New York to the rambling rots of Tokyo to the cooling breeze of Frankfurt right down to the bustling commercial districts of Singapore zooming right into the icy cold land of Iceland - to be transferred to a social network near you soon.

Well , in this present situation - how am I going to cope with all my financial responsibilities one may question ? Not that I have none being single but I do still need to pay my bills that comes knocking at my mail box fortnightly .
I know of a person who took advantage of this situation when he got retrenched by his employer . I also assume that the retrenchment package was a pretty good deal that he actually took the opportunity to pursue his studies in a foreign institution abroad ! Yup and no kidding ! Then again , there's this good pal of mine who lost his job and is still on the job hunting list as it’s been quite some time now since he’s been unemployed . I pray that his misery ends soon and that he settles well into a new job opportunity which I pray comes his way soon .But with all that is happening, it’s really out of our control as we can take the measures needed, but we also need not worry too much. We cannot let the fear of what is happening take a grip on us. Sometimes, this may be exactly what we need, to venture out and do what we thought we’d never do in this lifetime, and become a huge success! Let us all tighten our belts during this unpredictable times instead of splurging on ourselves as we have been witness ourselves to our surroundings to this uneventful times . I hope to practice the above and I hope that these hard times passes us by soon so that we can all get back on our tracks financially to where we have left off and to what these credit crunch has put us thru .