What needs to happen in order for the credit crunch to end?

jerusalem2006

Just wondered what needs to happen for the credit crisis to end? It seems that all the 'individual' financial issues which sort of converged over the past 12 months (sub-prime mortgage crisis/rise in oil prices/rise in cost of living etc) have now come to a head. They are all related and they all affect the other one, making the crisis a sort of vicious circle. If there are any economists or financial know-it-alls out there who could explain how a recovery could/would take place I am interested to hear your opinion. Obviously I have a vested interest in seeing my portfolio on the rise again but it is absolutely fascinating (and extremely scarey) to see all these financial variables bouncing around.

So, basically what I am asking is: What needs to happen in order for the credit crunch to end?

Transalper

People need to stop watching the fear invoking gloom & doom media news and spend more money. Oh, and I need to covince my boss then to give me a rise a rise!

opinions4u

American pension funds need to have faith that property markets aren't falling and won't fall, and that people are paying their mortgages and will continue to pay their mortgages.

amcluesent

A damned good war would help, certainly WWII did wonders for the US economy.

a7man

Eliminate all the pessimism in the markets and all the bearish thoughts going around intensified by the media. Put more money back into the economy as a result and will lead to recovery.

People need to start spending more, house prices need to stabilize and the banks need to have enough free flowing cash to allow for more lax borrowing.

bjorn_again

amcluesent wrote: »

A damned good war would help, certainly WWII did wonders for the US economy.

I trust you would be volunteering to bear arms if there was such a war.

bjorn_again

Strange that at times like this politicians take a low profile. As a nation there are millions of us who could contribute towards a recovery even in very minor ways if we were just given some guidance. Why don't we get a few Churchillian speeches to rouse us into doing our bit? Have our leaders forgotten their role - to lead.

amcluesent

>I trust you would be volunteering<

Dodgy knee. All that running about is for the young'uns.

oldwiring

amcluesent wrote: »

A damned good war would help, certainly WWII did wonders for the US economy.

:eek::rolleyes: and what would be left to do those wonders after the mushroom clouds had become ubiquitous?

halight

amcluesent wrote: »

A damned good war would help, certainly WWII did wonders for the US economy.

It was the globel turmorl from the 1929 crash that lead to the things that happened that started the 2nd world war.

So will it kick off again this time in a few years??

I hope not. But i have a feeling that other world powers might take this time of turmorl to flex there power.

North_Sea_Bubble

CONSUME. It's your duty !