Credit Crunch

Experts predict credit crunch not over

With the FTSE and other world stock markets rallying, many say the end of the global credit crisis is near.

Many figures realeased last week look promising for UK businesses. The CBI “Confederation of British Industry” polled 73 firms in July, they found that 27% believed credit availability had improved in the last three months, while 10% said it had worsened.

Richard Lambert head of the CBI said.

“It is still unclear when bank lending will be flowing freely again, but for many firms credit conditions are at last moving in the right direction.”

The Largest of businesses polled saw a strong rise in credit availability over the past three months.

If business can get credit it means they can expand, make more profit, pay more taxs and create more jobs.

Does this mean the credit crunch is over? Is your job safe?

Maybe, Maybe not Employment hit a 15 year high last week, many companies are still struggling. With so many worried about their jobs and not spending on their credit cards like they did before the retail sector is expected to suffer further.

Many experts also say the recovery has been to quick, when markets rise quickly the need to correct themselves.

Meaning the recovery will probably make a w shape on experts charts as opposed to the V they currently see emerging.

They also predict the cost of oil will increase with the strength of the US $.

Higher Oil and Gas prices will mean higher costs and more pressure on consumers again.