credit crunch

[gotenks123]

what is it exactly?

[opsmonkey]

A credit crunch (also known as a credit squeeze or credit crisis) is a sudden reduction in the general availability of loans (or credit), or a sudden increase in the cost of obtaining loans from banks.

There are a number of reasons why banks may suddenly increase the costs of borrowing or make borrowing more difficult. It may be due to an anticipated decline in value of the collateral used by the banks when issuing loans, or even an increased perception of risk regarding the solvency of other banks within the banking system. It may be due to a change in monetary conditions (for example, where the central bank suddenly and unexpectedly raises interest rates or reserve requirements) or even may be due to the central government imposing direct credit controls or instructing the banks not to engage in further lending activity.

Where have you been for the back end of this year..?

Space..?

[shady77]

what is it exactly?

greedy barsteward banks using other peoples money to dish out loans left right and centre and relying on the loan takers paying it back on time with interest.
unfortunately something happened with americas housing market and it all went tits up.
As usual, the rest of the world got stung by americas stupidity.
the above was taken from the financial times dated july 2008.

[lfc4life]

this people should be named and shamed! and sacked too

[Donnie Darko]

greedy barsteward banks using other peoples money to dish out loans left right and centre and relying on the loan takers paying it back on time with interest.
unfortunately something happened with americas housing market and it all went tits up.
As usual, the rest of the world got stung by americas stupidity.
the above was taken from the financial times dated july 2008.

As much onus should be put on the borrower also,both lender and borrower at fault for this.