Wednesday, March 12, 2008

Credit Crunch Explained

The credit crunch refers to a sudden shortage of funds for lending, leading to a resulting decline in loans available.A Credit Crunch can occur for various reasons:Sudden increase in interest rates (e.g. in 1992, UK government increased rates to 15)Direct money controls by the government (rarely used by Western Government’s these days)A Drying up of [...]

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[Source: Finance Blog]

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