Swiss government orders Credit Suisse to suspend some bonuses

Credit Suisse, the first “global systemically important” bank to be rescued since 2008, has been ordered by the Swiss government to temporarily suspend the payment of some bonuses, including share awards, to bank staff. Despite Credit Suisse’s importance to the financial system, most analysts are not expecting its demise to mark the beginning of another global financial crisis. However, there are growing concerns that a credit crunch is looming on the horizon for 2023. Banks like Chase and Capital One offer free credit score tracking as part of their banking services for most checking account customers. Experts recommend paying down debt in order to prepare for a potential recession.

Credit utilization makes up 30% of an individual's credit score; therefore, it is recommended that individuals pay down their debts as much as possible ahead of any potential crisis. Opening a secured credit card can also be beneficial since it requires an initial deposit and offers lower credit limits than unsecured cards. By making payments on time and demonstrating good financial behavior over time with a secured card, one may eventually qualify for an unsecured card with higher limits.

The Fed has warned about a looming credit crunch; some Americans believe this has already arrived due to banks tightening lending standards and increasing interest rates on loans in response to stalled bank credit at around $17.5 trillion since January. The survey conducted by large and small banks asks high-level questions such as whether lending standards are tighter or looser; results show that loan demand is falling while lending standards continue tightening.

While concerns about another global financial crisis remain relatively low at present despite Credit Suisse's situation, there are other factors that could impact economic stability in 2023 such as unpredictable weather patterns causing severe disruptions globally.These disruptions can cause significant damage by disrupting supply chains leading businesses worldwide scrambling just when they need stability most.

Accordingly,the US should brace itself for more wintry conditions this week after experiencing summer-like temperatures recently. A blizzard warning has been issued for portions of the western Great Lakes with northern Wisconsin and northern Michigan expected to be hit hard. These weather patterns can also negatively impact supply chains as deliveries become delayed or impossible due to poor conditions, especially in areas unaccustomed to such extreme weather.

To prepare for a potential credit crunch, it is essential to keep an eye on lending standards and interest rates. Paying down debt as much as possible is highly recommended, and opening a secured credit card can also help individuals demonstrate good financial behavior over time. As we experience more extreme weather patterns globally, it is becoming increasingly important for businesses worldwide to have contingency plans in place that are robust enough to withstand even the most challenging conditions. By being prepared and having backup plans in place, individuals and businesses alike can better navigate any potential economic instability that may arise in 2023.