Does the ‘credit crunch’ exist?

Does the ‘credit crunch’ exist?

I’m not sure where this post’ll go; but I enjoy talking about current topics, though I hate knowing about what’s going on in the world and don’t get off my chair to find out. I’m happy in my bubble of ignorance. I can handle living a life of lies as long as I enjoy it.

Anyway; back to the topic at hand.
The.. state of economics in the world at this time has changed from this time last year. Food costs have risen, my tuition for the next however many years (min of 2.5 at the moment) I stay learning will soar and my bank account won’t give me as much interest as I’d wish it would.

I want to share something someone close to me said earlier.  We were discussing something totally random and Poof! New topic.

 

* The euphemism “credit crunch” is used too often by morons as an excuse for being in debt.

 

* Food prices changed but im not a retard, i can live on what i have,   So long as you can hold a job down, There’s no problem.  If you cant, then get welfare and that should be able to tide you over until you find the job…

 

* I don’t understand how this is a problem aside from debts people shouldn’t have been in in the first place (and if they did they should have insured themselves) and mortgages, which i know are inevitable, but again im sure there’s job security insurance.

 

My understanding on this topic revolved around:  

People plan ahead; Changes to life means there plans are shifted, People panic.

 

* They panic because the media tells them to.  Which is why the terms used by the media are pretty much annoying buzzwords that people repeat like mantras of the inevitability of the degradation of society.

 

This is my bubble of ignorance. Without the news, newspapers, gossip magazines, television I don’t get these horrifying messages. I don’t worry about money or war or terror. I read blogs about raising kids in safe, natural environments, about being eco-friendly and helping others in need. I don’t NEED to know about who’s in parliament or what the name of the main actress in Miss Congeniality is (Sandra Bullock for those who want to know). My friend doesn’t understand why people go along with the media and I don’t understand why people even expose themselves to so much hatred, pain and desperation.

 

Have a think next time you look at your finances – has anything really changed? Yes; your plan to pay off certain amounts of debt each month may have changed – but isn’t the amount of debt still similar? Aren’t you still earning around the same amount you were before this all struck everyone down?

 

As I’ve said; I don’t know anything about this. I understand that people in America have been affected differently to us here in the UK.  It is my opinion that those living frugally already shouldn’t be affected majorly by this. If you have an opinion, please; I’d love to hear it. Your feelings and reasons.

 

But do any of you think that perhaps it’s just the media’s influence?

 

Stars Above,

~Celestial Rose.

 

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One thought on “Does the ‘credit crunch’ exist?

  1. Credit crunch, at least in my understanding, means that financial institutions are unwilling to lend money. This creates a credit crunch because people and businesses rely on credit to buy merchandise to sell or own.

    For instance a yarn store borrows $20,000 to buy the new upcoming yarns which in turn they hope to sell for profit. If the bank won’t lend them the money, they can’t buy yarn, then they have less to sell or less variety. They lose customers and eventually go out of business.

    For regular people it means they won’t be able to secure money for large ticket items such as houses, home renovations, and vehicles.

    I agree with you that the media is responsible for fear mongering and spreading panic.

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