http://news.bbc.co.uk/1/hi/business/7641535.stm
Last month, banks and building societies only lent a incredible 2% of the figure lent out a year ago in August 2007. In addition, B&B has been nationalised today. Do we live in troubled times? This depends on who you are, and in terms of what you are considering. As a student, my personal basket of goods typically consists of about >95% food. As food prices have been prising (in particular prices of wheat, fruit, eggs etc.) my personal CPI is likely to be somewhat high.
However, the property crisis may actually be good news for us as sixth-form students (thanks to my Economics teacher – who will remain anonymous for privacy reasons!) He suggested that we would only be looking for a house (and a mortgage) after we leave university – which would hopefully be when the market is starting an upturn. So, we might benefit from low property prices due to this crisis, as well as in the long term from rising property prices as the housing market begins a recovery (if the conditions are as presumed, and if one of us buys property then)! I personally say that another benefit of this is that we get to discuss our “interesting times” in Economics lessons!
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