Credit Crunch – Example Notes
Credit Crunch
Bank
Going Long, Going Short, Hedge Fund.
Banks Lending Money to people that can’t afford to repay.
Lending out reserves that should be kept.
Lending Money for people to buy houses which have fallen in price (negative equity).
Retail Shops
Woolworths distribution arm affecting Zavvi.
If you look at Woolworths you can see that they didn’t change, they were selling the same stuff they have been for years when you buy the same sorts of stuff from supermarkets etc.
Future
Need to try and change our existing business mode. It needs to be re-freshed and changed to meet the changes in the market today.
The credit crunch is a good thing, watch the businesses fall for new businesses like us to come in and change things.
Change products to make them necessities?
Possibly consumers become and take the role of a Bank and the Bank becomes the consumer.
Car Manufacturer
Increase in second hand car sales.
Possible recycling of old vehicles to make new cars?
Increase stocks of second hand car sales? Competitive after sales, MOTs etc.
Job Market Black-List
Make a note of all the people leaving top jobs now with big fat pensions who disappear when the times are bad and will return when the times are good.
