Progress report final assignment Essay Example | Topics and Well Written Essays - 2000 words

approach report final assignment - Essay ExampleThe net effect of this nervousness among lenders and creditors is to drive reside rates up in order to partly compensate for the higher risks involved (not getting repaid). other consequence is people who have money would rather put or park their funds someplace safe in super-safe Treasury Bills (or T-bills) guaranteed by the government instead of investing them. This lack of confidence in the economy and the future prospects of how well everyone will be doing are putting a squeeze on available credit. The credit crunch has worsened into a credit freeze in which it is now about impossible to borrow money. The net effect will be a continued slowing vote down of the economy and creates a vicious downward cycle in terms of the jobs lost, reduced tax revenues and so on. More ominously, a credit crunch affects everybody alike but the poor and working classes are adversely affected more than anybody. This results in a nation of people w ith reduced expectations about their standard of living. It authority people will have to content themselves with less because a credit freeze leads to reduced scotch activities which could have helped to spread and re-distribute wealth around. A credit crunch means negative consequences for almost everyone (Herbert, 20111). tabulate of Contents Introduction.......1 Discussion......................................................................................................................3 A. Different ways on how a credit crunch impacts on individuals........................4 A.1. Jobs and practice session Prospects....4 A.2. Higher Interest rates for Everything...............................................4 A.3. Reduced Savings and Pensions...............................................................................5 A. 4. Increasing Number of Home Foreclosures....................................5 B. Brief Overview of the Asset Price Bubble Phenomenon.......6 C. Failure of the Free Market Economy.............................................6 C. 1. Sudden Price Increases in an Asset Class......................................................6 C. 2. Central Bank Approaches to Mitigate Asset Bubbles....7 D. Preparing for a Credit Crunch................7 D. 1. match Enough Savings......................................................7 D.2. Augment your Regular Income...............................................................................8 D.3. Look for Profitable Investment Ventures................................................................8 D.4. Be Financially Conservative...................................................................................8 D.5. Be Financially Literate............................................................................................9 Conclusion...............9 Bibliography..............................................................................................................10-12 Discussion Ordinary people may not know much what a credit crunch is about or