Credit crunch Essay Example | Topics and Well Written Essays - 1000 words

Credit crunch - Essay ExampleThe people put one over started to understand the corporeal issues behind this credit crunch because it has impacted their lives in a very negative way. It has turned the rich into poor very quickly and the poor have no where to hide as well (Author Unknown 2008). In essence, the credit crunch has played absolute havoc with the people of this human beings and there seems to be no stopping on this premise at on the whole. Much needs to be done and for that to happen, the worlds biggest fiscal and economic bodies need to twit down together and devise a way for further progress and resilience in spite of appearance these areas.The historic basis of this credit crunch started when some of the worlds leading banks and financial institutions came down crashing some 2 years back. It brought with it a plethora of issues and troubles for the people, be them in spite of appearance the small sized markets or within the big institutions that played with the ec onomic issues of the people. The move destroyed the basis of any economic activity within the world and hence these activities came to a standstill all of a sudden. American and British companies started to see downsizing and job cuts, which meant that more people started to lose their jobs and they had to bear the direct consequences due to this credit crunch. What was worse was the feature that the established companies which were doing pretty well within the global contexts also came down crashing (Anderson 2007). The liquidity basis was therefore hit very badly and the people within the financial groups were blamed for such a situation that had arisen in the initial place. The historic basis of credit crunch has resulted due to a number of reasons away from these as well. The dependence of one money regime over the other has also been the root cause behind such debacle in the first place and therefore the blame must be shared amongst all concerned. What is worst is the fact t hat people have been at the mercy of such financial