Welcome to TheCreditCruncher.com

The Credit Cruncher was conceived to help you to keep up to date with credit crunch and recession developments, it provides some helpful credit crunch advice and it addresses personal debt. The Credit Cruncher also seeks to explain how the credit crunch started and shed some light on the worldwide recession. Recently, we have begun to look at how BREXIT will affect the UK economy. Please feel free to leave comments where relevant.

24 Apr 2010

Job market changes


Where are the jobs in 2010?

Figures were recently released indicating that 1 in 5 mainland UK workers actually worked for the Government in some capacity or other, and this is the area that shows the most growth. Jobs in the Environment Agency and the National Health Service, and local government planning and social services have risen over the past decade.
In contrast, as might be expected, traditional skills are on the decline. Also, competition in the electronics industry has seen manufacturers moving out of the UK. The knock-on effects have impacted many different job roles from Machinists to Quality Control inspectors. The shift in jobs has seen some de-skilling of the work-force with many employers now complaining that their employees are not sufficiently skilled to carry out their allotted tasks.
The percentage of state employed workers in Ireland has been reported as closer to 1 in 4, which I guess means that for the moment, jobs there are more stable. Government employment is a good thing when it comes to stability, and generally the State is a good employer. However the UK government has declared a pay-freeze as a result of the financial crisis, and this will have a profound effect on the economy.
A time of decline can often be a breeding ground for new small businesses to emerge, government needs to ensure that it creates an environment that encourages these new businesses to flourish.

16 Apr 2010

Who will fix the economy?


With elections looming in the UK, the underlying theme remains 'How are we going to get the economy back on track?' and politicians are in an uncomfortable position.
The road to recovery requires expenditure which means that the electrorate will have to pay through taxes. Over recent decades we have become used to our standard of living steadily increasing year on year, the truth is, that if we want to repair our economy, we will have to make sacrifices. This is not a popular election cry and this is why no-one is willing to proclaim it publicly. The three major parties will try and sneak a victory (The Liberals are looking like a force to be reckoned with after the first live televised debate), and then bring in the taxes when they are settled into office. This tactic will needlessly delay the recovery, and all done in the name of democracy... Another way in which the agony will be prolonged is the increased likelihood of a hung parliament and Gordon Brown was visibly 'cosying up' to Nick Clegg on the live TV debate seemingly preparing to pal up when there is no outright winner in May...
My primary concern as ever with this 'democracy' that we enjoy.. is that the first objective of the political party is to get itself elected, any real decisions that are going to help the economy (as opposed to policies that will placate the voters) get booted to the back of the room.
We wait to see what promises will be made and broken whilst the economy gets on with with fixing itself...

1 Apr 2010

On the slow road to recovery

There is no way that this existing financial crisis is going to blow over in just a few months, there are hard times coming as the huge Government cash injections need to be accounted for. Of course, the Government pays for nothing and if they were to lose the coming election (which looks at least possible at the moment) then the tax-payers will still be picking up the bill whilst the politicians are still arguing about their expenses (there are apparently more expenses revelations on the way..).
Having said all that, there are indicators that the economy itself has hit rock-bottom and is now crawling it's way back up with a degree of determination. Figures for GDP released early have now proved to be slightly pessimistic and have been amended. Output growth figures are reportedly the highest since 1994, but it is worth noting that when you hit rock bottom, the only way IS up after all...