Credit Crunch

So.. I have a burning question, inside about the credit crunch.. This post could go long.. so bear with me.

Right..

So, all around the globe theres a humongous amount of money, each country has its share, big or small.

Companies within most of the non 3rd world level areas have been telling us to take loans and get credit for the last bunch of years, heck, if you're more than 18 and you havent had that you've been pre-approved, please have our credit card, please take a mortgage, please take loans.. from someone, you must be under a rock...

Lets take a closer look at my country, petrol prices over the last year have gone from bad to extortion.. looking back 3 months or so, it was nearly a dollar higher than it is now per litre! Mortgage interest rates have plummeted, when I took out a mortgage in 95 I got 6.99 and that was a good rate, now they're doing like 4.5, some places less!

Now, Im sorry but..

Credit crunch..

Sure, the banks have paid the price for over borrowing and dont have it to give out, but, those already who had borrowed are getting better interest rates meaning their payments are less (see mortgages), those who drive a lot, are paying less now for petrol than they did 3 months back..

Now, if you say had 1800 a month income, and 1200 went on mortgage, 200 on petrol, the rest on you.. technically if that was 3 months back, you could be looking at around 1000 or less for your mortgage payment, and 130 for petrol.. but your salary has remained the same.. so.. credit crunch? Surely? you are better off now, so why arent people spending..

Why?

because lots of people are running round saying that the credit crunch means tons of redundancies, and that people cant afford to live - so people horde, so they try and save in case it happens to them, so yes, then people DONT spend, so then there IS an issue with companies not getting the money to keep employing people..

Is it only me who thinks is a catch 22 which if the media had shut the heck up, would only be effecting a much smaller number of people - such as those who needed to borrow and now cant?