Credit Crunch Hovers On The Horizon

[lovuian]

http://news.sky.com/skynews/article/0,,30400-1286024,00.html

The answer is they really don't want to lend to us right now either, as the credit crunch takes hold in Britain.

Recently, Northern Rock had to go cap in hand to the Bank of England when it couldn't raise the money it needed from other banks.

And consumers may soon find they will have trouble raising money too.

Currently, Barclaycard turns down half of all new credit card applications.

Furthermore, it has cut the credit limit of over half a million cardholders to reduce the likelihood of people defaulting on their debts.

snip...
part from cutting credit card limits, banks may also call in overdrafts - they can do this at any time!

Lenders may also raise their lending rates to offset the greater risk they see in the market.

This will increase the cost of borrowing and make it difficult for borrowers to access finance.
more...

It seems that the Lenders are going to get quite mean
In my crystal ball I see many bankruptcies in the future and that means Severe recession