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

Progress report final assignment - Essay ExampleThe net effect of this nervousness among lenders and reference workors is to drive interest rate up in order to partly compensate for the higher risks involved (not getting repaid). Another consequence is good deal who have money would rather consecrate or park their funds somewhere safe in super-safe Treasury Bills (or T-bills) guaranteed by the government instead of investing them. This lack of confidence in the providence and the future prospects of how well everyone will be doing are putting a squeeze on available credit. The credit densification has worsened into a credit freeze in which it is now virtually impossible to borrow money. The net effect will be a continued slowing down of the sparing 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 only the poor and working classes are adversely affected more than anybody. This results in a nation of people with reduced expectations about their standard of living. It means people will have to content themselves with less because a credit freeze leads to reduced economic activities which could have helped to spread and re-distribute wealth around. A credit crunch means negative consequences for almost everyone (Herbert, 20111). Table of Contents Introduction.......1 Discussion......................................................................................................................3 A. Different ways on how a credit crunch impacts on individuals........................4 A.1. Jobs and Employment Prospects....4 A.2. high 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 throw overboard 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. Gather replete 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