Your thoughts on this credit crunch

Markyt

dunstonh wrote: »

Have you seen the way deals have been vanishing recently?

Fixed rates are dependent on the funds being available to offer at that fixed rate. If the funds are not available or the terms are not attractive to the lender then they will not be available or attractive to you.

That doesn't affect (as much) lenders who rely on savers to fund their lending. It hits hard those who rely on loans to do it though.

sarkin

Picture is worth a thousand words

Golf_Nut

This credit crunch situation seems pretty serious. I was advised that investing in Global Shares is a good option especially when the market is down. But the FTSE seems to be falling everytime i turn on the news. I still don't quite understand the difference between Global Shares and just normal shares. I hear the media refer to Global Shares, is this just a term the media uses to refer to shares all around the world or are they a specific share like you have ftse shares and american shares.

So i guess i'm asking people with a bit more knowledge is now the time you want to buy shares when the market isn't going well.

Dan_Collins_2

Funny, seen this report on the BBC news pages.

http://news.bbc.co.uk/1/hi/business/7305039.stm

I think they should look at the share brought by media personel!

domthered

Markyt - EVERY lender now relies to a greater or lesser extent on the money markets for funding. This means that the massive reduction in availability of credit is now every lender, and borrowers, problem. The largest residential lender in the UK relies on 30% of it's funds for mortgages, which are now not available! This is resulting in lower LTV's, higher rates (it doesn't matter a jot what the Bank of England does to base rate) and tighter lending criteria.

i have counted 20 lenders that have shut up shop since sept 07, 1000's have lost jobs in the industry, yet it never makes the news like a car firm shutting!

lethal0r

bloody slow crunch aint it. i wish it would hurry up and decide where its gonna end up.

minimike2

I think theres a long way to go yet. I wouldnt be suprised if the effects continue well into 2009.

Rabiddog_2

nope I reckon come Christmas this year we'll be seeing the end of the beginning, certainly some big firms will have merged or been taken over and a lot of these weird and crazy "investment vehicles" will have gone.. for now...then in another 15 years a new gen will make slightly different mistakes. But I'll have paid off my mortgages by then

taxi73

I think it's got a way to go yet and that a number of businesses will go as well due to not being able to extend borrowing facilities.The smoking ban and general lack of money about already has seen my takings down...luckily I have room for cutbacks and will just try and ride the storm.