the latest financial catastrophe in the world reported a massive blow, beginning in the last week as thousands of workers lost jobs in London as a result of the collapse of investment bank Lehman Brothers famous after they filed for bankruptcy. The bank had operated for over 150 years before they collapsed under pressure from the current financial crisis sweeping the world.
Very soon after, a Bank of America bought the Wall Street best-known banks, Merrill Lynch, in what was reported to have been an operation loans' rescue home. ' Meanwhile American International Group, Inc. (AIG), world leader in financial services and insurance was $ 85billion aided by the U.S. Federal Reserve after experiencing massive financial problems.
But U.S. banks were not the only ones to feel the heat, as the Bank of England put five billion pounds in markets, while the European Central Bank injected 30 billion euros.
Owner of the Halifax Bank of Scotland and HBOS saw its shares plummet to the point where they were forced to accept a takeover bid made by a leading UK bank Lloyds TSB bank creating a giant worth 30 million pounds.
is common knowledge that significant movement in the financial sector will eventually result in noticeable changes to everyday life.
Banks tend to keep their money to help convince investors that they can recover their bad loans and investments. As a result, banks will stop lending as much to customers through credit cards, loans and mortgages.
That means it could be harder to be approved credit, based on a number of factors, such as credit history and will likely mean higher interest rates.
This credit crunch will reduce the amount of expenditure made by Australians who in turn will slow down economic growth.
This vicious cycle continues to spread its effects, as less credit means less spending and less spending means less demand for companies are likely to be hit hard and job cuts will follow.
Very soon after, a Bank of America bought the Wall Street best-known banks, Merrill Lynch, in what was reported to have been an operation loans' rescue home. ' Meanwhile American International Group, Inc. (AIG), world leader in financial services and insurance was $ 85billion aided by the U.S. Federal Reserve after experiencing massive financial problems.
But U.S. banks were not the only ones to feel the heat, as the Bank of England put five billion pounds in markets, while the European Central Bank injected 30 billion euros.
Owner of the Halifax Bank of Scotland and HBOS saw its shares plummet to the point where they were forced to accept a takeover bid made by a leading UK bank Lloyds TSB bank creating a giant worth 30 million pounds.
is common knowledge that significant movement in the financial sector will eventually result in noticeable changes to everyday life.
Banks tend to keep their money to help convince investors that they can recover their bad loans and investments. As a result, banks will stop lending as much to customers through credit cards, loans and mortgages.
That means it could be harder to be approved credit, based on a number of factors, such as credit history and will likely mean higher interest rates.
This credit crunch will reduce the amount of expenditure made by Australians who in turn will slow down economic growth.
This vicious cycle continues to spread its effects, as less credit means less spending and less spending means less demand for companies are likely to be hit hard and job cuts will follow.
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