When will the impact of the credit crunch disappear?
Despite the fact that the credit crunch occurred over three years ago the ramifications of one of the most dramatic economic downturns in the history are still blighting the UK and worldwide economies to this very day. The credit crunch has literally blown a hole in the business model of the UK financial sector, brought down economies around the world and left a major footprint on government budgets around the globe.
Then when you also take into account the impact upon investor and business sentiment in the short to medium term, businesses have never been so risk averse. It may well be over a decade before the full impact of the credit crunch has disappeared and balance sheets have been rebuilt and companies replenished. This is truly a massive impact which the credit crunch has had on the worldwide economy, an impact which is unlikely to disappear in the foreseeable future.
In many ways we can only hope that governments, businesses and consumers around the world have "learned their lesson" with regards to the economic downturn and an appetite for agreed which reached unhealthy highs in the early 2000s. However, whether these lessons will be learnt is another matter!
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