THE CREDIT CRUNCH… AND A BUMPY RIDE

11/09/2007 Marcus Killick OBE

This article discusses the 2007-2008 global financial events, particularly in the UK, and emphasises that while a significant depression or recession is not imminent, challenges exist. It outlines the origins of the financial turmoil, primarily the subprime mortgage crisis in the USA, which triggered a chain reaction affecting financial markets globally.

The article highlights how interconnected the world’s financial systems have become and the role of securitisation in spreading risk. It delves into the complexities of credit rating agencies, the lack of transparency in the market, and the need for trust and confidence to rebuild in the financial sector. Killick concludes by cautioning about potential future challenges and the importance of addressing underlying issues.

Read the article: The Credit Crunch – and a bumpy ride

(Article first published in Gibraltar International, 2007.)

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