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The Credit Cruncher was conceived to help you to keep up to date with credit crunch and recession developments, it provides some helpful credit crunch advice and it addresses personal debt. The Credit Cruncher also seeks to explain how the credit crunch started and shed some light on the worldwide recession. Recently, we have begun to look at how BREXIT will affect the UK economy. Please feel free to leave comments where relevant.

3 Jul 2008

Credit Crunch latest news

You don't have to just take my word for it as today the Bank of England announced that banks would need to tighten their criteria on mortgages. This comes as no surprise to those who have been monitoring the situation, but clarification is always helpful.

Home lending has already been curbed from the beginning of the year and it is likely that lenders will require higher deposits. Despite the tougher criteria, there is no indication that costs for mortgages will rise and quite honestly there would be no justification.

A statement issued by US Treasury Secretary Hank Paulson indicated that the current predicament is set to continue 'for some time' and the problem will be accentuated by soaring oil prices. However, he predicts a 'recovery' by the end of the year, but does not indicate specifically how this recovery will be measured, leaving the door open for any statistic to be potentially quoted at the 'end of the year' to support this claim. Government statisticians will be scrabbling for their pencils in November to work out which statistic they are going to trot out to 'prove' financial recovery...

He gave the statement after meeting with UK Chancellor Alistair Darling in London shortly before the price of Brent crude oil hit $146 a barrel.

Popular Questions:
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