It’s been a difficult year, we can’t deny it, but over the decades of taking a look at the financial activities of every year, never has a year shook the financial foundations of the UK and other economies.
The major economic problems all stem from debt and a lot of it.
Over years we’ve enjoyed the whole marketing ploy of taking something away immediately and enjoying it straight away without having to pay for the items until months or years later. This has caused a back log of debt for those who have not paid within the alloted time, then when that period of free interest is over it rises incredibly, sum up to 29% which then creates a problem whereby people can not afford repayments or the interest on top. So this is a vicious circle. Not only has produce offer these dreams but financial solutions such as credit cards and loans.
Banks have freely given over the past decade without really taking into consideration whether those people will actually be able to afford to repay loans and credit cards, once again causing massive debt.
It was hoped that by raising taxes these massive debts could be paid off but it had an adverse effect and slowed the economy.
The UK crisis goes hand in hand with the USA and European debt due to the fact the two main banks that needed rescuing, were universal banks.
When we look at the rise and rise of companies such as Apple, their profits have soared over the past 10 years, but what will happen now with the loss of their incredible visionary Steve Jobs?