It's constantly in the financial news now about how the credit crunch is going to affect us all in a bad way and perhaps even lead to a recession in the economy, but what does this actually mean for your average joe, (worst case scenario).
As far as i can see the worst that could happen is that it becomes a bit harder to get a loan or a mortgage and house prices will come down. But most people in britain want them to come down because they've been too high for years! Why are the media portraying this as a bad thing. If it becomes harder to get a high mortage, surely the negative effects of that will be cancelled out by falling house prices?
Other than these points how could a recession/credit crunch possibly harm you're average joe?
Could it be likely to cause deflation, (if thats the opposite of inflation?) Even if salaries drop on average, again that will surely cancel the effects out?
As long as i have the money to go where I want, and buy what i want, I can't see a problem
2007-12-05
18:09:11
·
3 answers
·
asked by
Alex
2