CAUSES AND EFFECTS OF CREDIT CRUNCH

Causes and Effects of Credit Crunch

Causes and Effects of Credit Crunch

Introduction

The credit crunch has been blamed for the more general economic downturn and everyone around the globe has been affected by it. The most obvious effect would be the slow-down in the housing market. It seem that the cause of credit crunch is being blamed on thousands of borrowers who took out loans that they could not afford and fail to pay for in the long term, eventually abandoning the payments altogether. This leaves lenders having debts on trillions of dollars sitting in ...