From reports on TV and in the newspapers the world’s financial house of cards is said to be falling. But we all know that the more sensational the story the more newspapers and television programs will be watched. The world economy is not in the best shape at the moment mainly due to the credit crisis. How has this happened and how will it affect you?
The basis of what’s going on in the world economy stems from the credit crisis or credit crunch in the United States. What is a credit crunch? Credit crunch simply means that the amount of money available from savers to be lent has decreased and the lenders are also asking more interest on the money they are going to lend. Why is it that this seems to be causing so many problems? [Read more…]