2008 Review
The year 2008 will always be remembered as the year the phrase ‘credit crunch’ entered the dictionary, despite the fact the severe shortage of credit started back in August 2007 when French bank BNP Paribas admitted it could not value some of its assets due to a “complete evaporation of liquidity” in the market. Within a month the European Central bank had pumped 95bn euros into the banking market although this wasn’t enough to prevent a run on the Northern Rock and it’s eventual collapse.
Only days into 2008 and the World Bank issued a statement predicting that global economic growth will slow in 2008 as the credit crunch hit even the worlds richest nations. But I doubt even they expected the FTSE would end the year down 31.3%, with interest rates across the globe being slashed to record lows. But despite all this doom and gloom I was still able to make money as my Millionaire Adventure continued.
