Discuss the impact of the credit crunch on the job market today. How can young graduates react to this new situation?

The credit crunch is one financial phenomena the most dangerous for us modern economies. It is defined as a decrease of loans to businesses and households by the financial institutions. The banks lend less and economy is in lack of liquidity.
What are the causes, consequences and solutions to remedy this phenomenon?

Several reasons explain the phenomenon of credit crunch.
First, the increase coste of refinancing for banks. Indeed, the financial difficulties of market lead banks to increase their rates in order to limit their losses. The banks lend but with the money that borrow which increases the cost.

Then, the excessive use of financial means. For example costumers in financial titulars by creating a corporation. It is a method used by banks to enable them to refinance. This method is nevertheless down because nobody wants buy more property debt considered at risk.

Finally, the borrower failure. In fact the borrower was believed creditworthy can not repay, the bank is increasing its costs. And with the declining of market property, creditor can not even recover its investment by selling of the house has been its price plummet.

Enfin la défaillance des emprunteurs. En effet l'emprunteur que l'on croyait solvable, ne peut plus rembourser, la banque se voit d’augmenter ses coûts. Et avec la baisse du marché de l'immobilier, le créancier ne peut même pas récupérer sa mise de fonds par la vente de la maison qui a vu son prix dégringoler.

Le credit crunch a de multiples causes, cependant il existe des conséquences. Le crédit à l’économie est le principal moteur de toute économie moderne de marché. S’il s’arrête, c’est l’investissement qui s’arrête. Et, sans investissement, pas de production, pas d’embauche, pas de revenu, pas de consommation et, in fine, pas de production et donc… des faillites d’entreprises en