Credit Crunch

Credit Crunch Action

This past week has been the most action packed so far in this credit crunch, we’ve had Billions of pounds lost on share prices around the world, united action from governments cutting interest rates by 0.5% and yet more of UK Tax payers money going to banks.

Monday saw the biggest FTSE 100 Collapse in around 20 years with £ Billions being wiped of share prices, the DAX and Dow Jones also suffered as the credit crunch made banking and other shares nearly worthless. The Russian stock market dropped almost 20% and Iceland The Country was on the edge of national bankruptcy.

On Tuesday Icelandic Bank, Landsbanki was taken into administration, the 300,000 UK Savers with money in the banks UK arm Icesave, were left wondering how they would get the money back, the UK has however said it will cover these loses up to £50,000.

Yesterday governments around the world took action on interest rates. The UK, US, Swiss, Chinese and EU central banks all cut interest by 0.5% to try and take a hold of the global financial crisis.

In the UK bushy eyebrowed Chancellor Alistair  Darling announced a massive bank rescue plan that, pledging around £20,000 for every UK Tax payer to try and save the countries struggling banks going the way of Lehman Brothers, Bradford and Bingley as well as Northern Rock.

Is this action going to stop The Credit Crunch? Most analysts admit they don’t know.