Could There Be Another Financial Crisis?

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Lately, on the news, I've heard of many of the UK's financial struggles and how its problems are aggravating each day - especially the north of England. The rest of the United Kingdom are gradually developing though if the north's issues become worse, it can affect all of the others.

The difficulties can spread if:

  • They ask for loans from other cities and regions or wrse the Bank of England
  • Northerners bribe us into paying all of their dues whilstwe lose money unconsciously
  • Their councils ask the rest of the UK to take risks and raise money for them

Could we face a crisis again?

Many say thet we could face recession in 2020. However, the NABE panel, National Association for Business Economic, salso stated that the growth could be cut short by an upcoming recession, with two thirds of the economists predicting that a recession will start by the end of 2020 and 18% believing that a decline could begin as soon as the end of 2019.

3 Ways To Prepare For A Financial Crisis

1 - Look for ways to earn extra cash so you can always pay back loans + the extra

2 - Closely manage your bills - if you can't afford to pay loans do not risk it

3 - Encourage the Government to create strict banking rules

So, we all know that our country needs help - in fact, the whole world needs it. But we can stop it. In the comments, write your opinions on what you think of the economy.

Comments (4)

  • Millbank-logo-250x250.jpg allowing_singer | Millbank Academy A
    22 Nov 2018

    The European community and Theresa May (Prime Minister)don’t agree on brexit on the way our prime minister wanted to be (trying to get the best deal for the British society).

    Reply to this comment
  • Millbank-logo-250x250.jpg precious_cheetah | Millbank Academy A
    10 Dec 2018

    History shows that there are two things we can be sure of when it comes to financial crises: there will be another one, and the next one won’t be the same as the last.

    That’s a big problem because they can be very damaging…

    A financial crisis causes so much harm because people rely on financial institutions every day: banks provide debit cards so we can pay for things more easily; pension providers help us plan for the future; and insurance companies provide cover in the event that our belongings are damaged, lost or stolen.

    When a crisis hits, the after-effects can be felt for many years after. Looking at various examples throughout history, one estimate places the total economic cost of a typical financial crisis at around 75% of GDP. That’s equivalent to £21,000 for every person in the UK.

    Take the 2007-08 financial crisis, which was one of the most severe ever seen. Some financial markets effectively closed. Others were so badly damaged that businesses and households were unable to get the finance they needed. As a result the UK economy suffered the deepest recession since the Second World War.

    That led to a real impact on wages, jobs and access to credit for people across the country.

    Reply to this comment
    1. Olivia-Avatar.jpg Olivia @ the BNC
      precious_cheetah's comment 11 Dec 2018

      Please make sure that all comments are written in your own words and that if you use another website for help, you include a link to where you found the information from!

      Reply to this comment
    2. Olivia-Avatar.jpg Olivia @ the BNC
      precious_cheetah's comment 11 Dec 2018

      Please make sure that all comments are written in your own words and that if you use another website for help, you include a link to where you found the information from!

      Reply to this comment

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