A pupil of mine asked two questions about the Credit Crunch. She didn't ask me - I am too busy with you lot at EF!
She asked Economics Help
I thought the answers given were particularly good and therefore I am using this posting to praise Tejvan Richard Pettinger. Please visit his site and look around - there is much there that is of interest.
You might also like to look at the two questions - could you have answered them?
The questions are shown below:
The government puts a lot of money into banks who over-lent funds. So why are the banks still lending out money for mortgages?
The problem has been the number of defaulters. But for Building Societies there is less than 0.001% of 1% defaulters (Saturday’s Guardian) - where ARE all these houses being repossessed?
Think about the answers given...