I have choose the topic of effect of credit crunch on uk economy for comparative analysis and for the purpose of this comparative analysis i have articles publish in business source premier. The title of the articles i have studied and compared are

What part of GB are vulnerable to credit crunch

Credit crunch – what might the uk regional impact be

Though the title of both of these articles are not exactly same but these articles have similarities in that they both deal with the issue of the affect of credit crunch on UK .

When considering the purpose of the articles and the framework in which they are written which is regarding credit crunch and its impact on the uk economy.

the first article consider the affect of credit crunch as two way as on the first side the was shortage of availability finance and on the other side there were increase in the cost of the food and energy prices which is squeeze on disposal income. But on the other hand both articles tend to agree that the affect of the credit crunch is not limited to the capital areas of London etc but have lasting impact on the regional areas of the country.

Complexity in banking and related metropolitan sectors bring to mind that the local impacts of a economic crisis would be felt extremely harshly in London and, to some level, the South East. But this is not the entire picture of it, and we would anticipate bigger impacts on, for example, commercial services and consumer-related sectors that would impact overall.

The lending crisis is consequence of US sub-prime crunch. The US sub-prime crisis has seen above average height of non-payment on securitised mortgage liability. Regardless of what were intended to be moderate credit ratings the loans turned out to lack transparency, in that the final investors were both unaware of the higher stage of threat, As soon as the mortgage had gone poor, were too distant from the non-payments to be capable of successful repossession of money, which caused the trust issue among number of financial institutions, which furthermore has meant that it is difficult for financial institution to bring up money. This is exactly what happened for mortgages at the moment. Which had come to depend upon deeply on examining money in past years? But it communicates on other consumer and industrial finance, and on City style international financial services business (for example, mergers & acquisitions).

The influence at the moment is on home equity loan providers who are going through commercial low prices times. Consumer credit has, at first at least, been more vigorious, even though fresh new commercial development is well depressed on a couple of years ago. This early flexibility is probable to be a consequence of consumer credit taking niche from home equity loan withdrawal and from domestic using consumer credit to assistance finance greater home equity loan costs. Together these are dubious to endure and commercial capacity could clearly drop, Still if not as sharply as home equity loans. Commercial borrowings also look risky at present unsure environment.