The Effects of the Credit Crunch Impacted the UK Population In Terms Essay

The Effects of the Credit Crunch Impacted the UK Population In Terms Of Lending, Mortgages And Unemployment - Essay Example Credit normally contracts during a recession, but an unusually large contraction could be seen as a credit crunch. Jeffery, Avis and Wallace (2008) give a similar definition as Bernanke and Lown, stating that a credit crunch is a condition when borrowing money comes at higher interest and the borrower has to pay higher costs. Nevertheless, the economists Clair and Tucker (1993), who analysed the factors affecting the supply and demand of credit from 1986 to 1993, emphasise the causes of a credit crunch, stating that many economists, borrowers and regulators have expressed different views about the causes of a credit crunch, â€Å"like blind men examining an elephant, none of them are completely right or completely wrong†. However, this is due to every significant body of literature being viewed from different dimensions. Clair and Tucker (1993), in their journal, also state that bankers cite the cause of a credit crunch as lack of high quality loan demand, legislators blame ov erconfident regulators, borrowers say banks are too conservative and economists define a credit crunch as the cyclical decline in credit demand. ... cker (2008) argued that the heavy inflow of funds with low interest rates between 2002 -2004 has contributed to easy credit conditions, which encouraged both housing and credit bobbles; the Mortgage Backed Securities (MBS) was believed to be a part of the housing and credit boom. In addition, FT Intelligence (2009) emphasises that, between 2004 and 2006, US interest rates rose from 1% to 5.4%, causing a slowdown in the US housing market. Homeowners who couldn’t afford to keep up with the high interest rate began to default on their mortgages. Ellis (2008), on behalf of GLA Economics, states that high risk loans to people with weak credit histories soared to record levels and the impact of these defaults has been felt across the financial system because most of the mortgages had been packaged and sold on to investors and banks. Parkinson, Michael, Blake and Key (2009) analysed the impact and implication of the credit crunch in the UK. They define a credit crunch as a sudden cut in the availability of credit or loans, including mortgages, credit cards and interbank lending as banks worry about a lack of liquidity, and these financial crises are felt throughout the financial system. Brummer (2008) emphasises that the credit crunch, which began in August 2007, was due to the poor health of America’s mortgage intermediaries Fannie Mae and Freddie Mac. It shocked the financial market around the world and led to the economic crisis. As a result, the Lehman Brothers and Washington Mutual were the first dominant financial institutions to collapse in the credit crisis and become insolvent, say Dashan and Fabrikn (2008); other banks like Barclays and UBS announced fundraising via rights issue to boost capital ratio. Parkinson, Michael, Blake and Key (2009) have a similar

The development of the legend of King Arthur Research Paper

The development of the legend of King Arthur - Research Paper Example He is thought to have fought during the Dark Ages warrior of the Celts. The mythological structure that followed his history was based on his reign in the Dark Age. However, there is no common agreement that the legend existed either as an individual or in the form of composite of several persons. The relationship between Saxons and Celts in Britain has helped authors to explain the development of the legend (Castleden 226). He became famous for during a time when there was social unrest and erratic moral stability in Britain. He was the only military leader whom people thought could bring law and order back in the famous paradise of the west. King Arthur had relationship with Queen Guinevere, who allegedly had an affair with Lancelot (Castleden, 229). Lancelot was one of the best knights and a member of the Knights of the Round Table. The tale of King Arthur tells of his deadly conflict with his nephew and son Mordred. He king was turning down son’s quest for the Holy Grail. King Arthur’ stories developed during the 5th century when Britons were fighting Saxon advance to the paradise of the west. The Saxons were forced back to the Cornwall and Wales, and their territory became what is presently known as England. The Welsh narration of King Arthur mentions a foreign leader who helped Britons to hold Saxons at bay. The Welsh chronicles explain that the Saxons had no intentions with the exploits of King Arthur (Caerleon.net). Historia Britonum is one of the first references to how the legend developed and is a compilation of Welsh Chronicles in 830 AD. The chronicles describe King Arthur as a warrior who braved twelve battles during his reign. The legend fought the battler of Mount Badon and City if the Legion to mentioned a few of the battles he helped Britain to win (Caerleon.net). Geoffrey of Monmouth also helped to develop King Arthur’s stories. Geoffrey narrates King Arthur as a