Cityvisitor blog

10 years on – how we still haven’t recovered from the economic crash

There is no doubt that the past decade has been a real struggle for many families financially.

The banking crisis from 10 years ago caused mayhem for economies around the world, and it is amazing how we are all still feeling the pinch from this despite such a long time passing.

Wage growth remains anaemic, to quote the man in charge of the banks Mark Carney, and cuts to local government spending are having a huge effect on the front line of services.

Nearly every service you can think of has had to endure some form of hit financially.

The country is borrowing nearly as much as it is making despite all these cuts, and you do wonder what the future holds for our country’s economy. Whether Brexit will help, only time will tell.

The crash all began when a French company shut down three investment funds in the U.S. property market because it didn’t know what had happened to all the money, or how much it was worth.

This began a crisis that hit every pocket in the world.

It put paid to huge banking institutions such as Northern Rock and The Lehman Brothers, and the government had to step in to bail out British banks.

People were lending too much, and it is a slight concern that people want some of the restrictions from a decade ago relaxed to help stimulate growth.

I’ve always been of the opinion that you don’t buy anything unless you know you can afford it.

Mortgages are the only form of borrowing I have ever considered.

I find it scary and just something beyond my comprehension that people would borrow money with no way to pay it back.

But given the problems some people go through, if you are borrowing money to literally put food on the table, how can you argue with that?

It is a difficult one to weigh up, and I hope we can learn from the mistakes of the past to improve our future.

http://www.bbc.co.uk/news/business-40869369

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