And the answer to the credit crisis is…

… well according to the Bank of England and the Fed it’s to cut interest rates to keep people spending and borrowing. Whether this policy will work in the short to medium term is debatable, but in the long-term people will have to cut back their levels of borrowing as its simply not sustainable.

The rate cuts are bad news for savers as interest income will be cut and with inflation continuing to rise, as a result of higher food and energy prices, savers will be feeling a lot worse off this year.