The Credit Crunch (Psychological effect)
 

For those not familiar with the term see here

Back in 1992, it was declared an Annus Horribilus for the Queen, but by the end of the year, everyone seemed depressed and everyone wanted to see the back of that year. (I am not sure 1993 was that much better)

But now we have the credit crunch and the rise in oil prises

We have seen a collaped bank, failed airlines.

Does anyone else sense, like in 1992 a general air of gloom and despondency caused by the credit crunch, even if technically they are not directly effected by it?

Does anyone have any ideas on how to stop it in it's tracks?

:sad:

Its depressing, especially as its worse than back then, and the ecomony is about to collapse, I hope its over very soon

Hopefully if this bail out by the government goes ahead things should begin to improve. They are investing £50bn into shares of the banks to stop them from suffering so much. Things will take a while to improve but I don't think its as bad as people think...
I personally haven't seen that much of a change, just prices on food going up by about 20p or something. I did hear about a guy losing his a job because a business were struggling to keep up with wages...

Fingers crossed anyway!

The capitalist system will implode one day anyway, and we'll have to find a new way of living

I think capitalism will always prevail.

By it's very nature it's longer lasting than other eras... such as feudal. It's designed to last a long time amongst the elites.

longer lasting maybe but not everlasting

anway maybe we'll be livin on mars by then and found some aliens to exploit lol

I heard that Capitalism is where Man exploits Man, where as communism it is the opposite, Man Exploits Man

I was born in 1992. So it can't be that bad :P

I feel like I'm the only one not being affected by this properly? OK I've closed by Halifax bank account down and took everything out but thats about it. I'm not feeling tight pocketed or scraping for every last penny or anything

"Communism doesn't work because people like to own stuff."

Hypothetically, what would stop the credit crunch in its tracks is if the market leaders in every single market you can imagine (food, materials etc) slashed their prices. Smaller businesses would follow suit, because they don't want to be undercut, thus calming down the high prices that are beginning to appear.

Obviously this only deals with part of a larger problem, but I think that that would be the ideal action.

I'm contemplating where to put a 100 grand, where it's going to be safe.

Do what my granny did - keep it all in envelopes around your house; between book pages, down the back of sofas etc. My dad was furious after she died, because when they were emptying her flat they found all this money - it could have easily been stolen. But in light of the current situation, maybe she wasn't so stupid after all.

That sounds like a pretty good idea to me. When I was saving I had a thousand euro in a tin with 'Saving Tin' written on it in my room which apprently wasn't very smart.

communism doesnt work! Who said I was a communist? All Im saying is Capitalism cant last as a system not it is good or bad, infact I think the free market distribution of resources is the fairest system theres been and has contributed to the general wealth and health of the "west". However I think that as world resources deplete we gonna run into trouble, s'all and there are other problems which I worry about but I wont go into them now or we'll be here all day

I think the people it is affecting most is Middle Class families... I bet the parents are struggling the most trying to buy a weekly shop when bills are getting higher... and fuel is getting higher.
It all adds up I suppose.

I'm from a middle class family and not affected ...

Im sure your parents are!

I don't live with them so ...

well u must be freakin loaded then

My father is sick with worry that his savings will go if the bank goes under, I think he is with the Alliance and Liecester which is being acquired by that Spanish bank that took over the Abby National

List of the World's Safest Banks according to a magazine called Global Finance - http://www.85239.com/NEWS/NewsArticl...ArticleID=4229

2007 Top 50 Safest list - http://alansmoneyblog.com/2007/11/25...st-banks-2007/

Since they list Lloyds TSB, how accurate is this list. Is not Lloyds TSB one of those having to make use of the bail out?

Getting back to the topic, even if you can not see how you may be directly affected, does it still not give a sense of gloom?

Well kinda sticky because I worry about how long we can sustain this way of living anyway, although itll probably our kids that have to deal with that...but I dont live a majorly extravagant lifestyle anyway and have never owned a credit card...right now it just means being more stringent and not going out so much for me. I think things will pick up, but this kind of thing will happen in cycles anyway, so I'd just live within your means if your worried and you'll be ok. Its seriously poor and those that have borrowed **** loads who've got to worry the most I thinkand them that could lose jobs