Credit Crunch? What credit crunch?

Apparently there is some sort of financial crisis going on. This means that rich people who have saved their money are earning less interest than they used to and may now have to work for a living instead. Conversely those who work for a living and have no savings, mainly due to paying exhorbitant taxes to fund the lifestyle of the idle rich, now find that their mortgages have gone down, meaning that they have more disposable income to save, although there is no point as there is no interest paid on savings, so we may as well pay off the mortgage even quicker, so that we can retire earlier.
So to summarise, the rich are getting poorer, and the workers can retire sooner. And this is a bad thing?
So how do the unemployed fare in all this? By and large the great unwashed have no savings and no mortgage, so provided the price of Stealla does not increase they have nothing to worry about.
Sadly, a few people will lose their jobs as there is a downturn in industry. But our woderful government have a solution. If I understand correctly we got into this position because the banks lent money they didn't have to people who couldn't pay it back. Ironically our Government beleive that by encouraging people to spend money they don;t have we can buy our way out of tis recession. So we have the scrappage scheme. This means that if you are poor enough to own a car more than 11 years old (it has to be ten years old and you have to have owned it for more than a year) you can trade it for a brand new one and get £1000 from the government matched by £1000 discount from the dealer to buy a new car. This will support the British motor industry (What British motor industry?)
So how many pople driving for example a ten year old Volvo have £14,000 stuffed undeer their matresses to buy a new one, even with a £2000 subsidy? Sorry but if I had that sort of money I'd be paying a huge chunk off my mortgage. So, the people buying these new cars will be buying on credit. Borrowing money that the banks don't have and which they can't gaurantee will be repaid....... Hmmm. Haven't we been there before.