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Revision as of 14:45, 10 February 2007 editCreditcrunch (talk | contribs)2 edits Full edit of page. A statement of what credit crunch means.← Previous edit Revision as of 14:48, 10 February 2007 edit undoGuiltyspark (talk | contribs)Extended confirmed users, Rollbackers1,364 edits iffy page but cleaned up anywayNext edit →
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⚫ =The Credit Crunch=


⚫ ==The Credit Crunch=
⚫ The term "credit crunch" had been appearing more and more often in the financial press over the past year. There are a handful of dictionary definitions found when searching on the Internet and am surprised not to see one here on wiki.


⚫ The term "credit crunch" had been appearing more and more often in the financial press over the past year. Put simply, it is the tightening of available credit.
==So, what is the "credit crunch"==


⚫ Globally at the moment there is a trend in interest rate rises around the world, people may think twice about spending any available debt. Banks may become twitchy about lending to consumers if the risks of defaults increases.
Put simply it is the tightening of available credit.


==Possible Implications==
⚫ Globaly at the moment a there is a trend in interest rate rises around the world, people may think twice about spending any available debt. Banks may become twitchy about lending to consumers if the risks of defaults increases.

==Any evidence of this happening?==

Yes. Taking the UK as an example the trend in personal bankruptcies and IVAs is rocketing.
The popularity of credit card usage is falling and people are saving/or not spending more.

==So what, why should I care?==


The credit crunch will feed through all parts of an economy, once people can no longer borrow money to spend on clothes, food, nights out. Whole industries will suffer putting many people out of work. The credit crunch will feed through all parts of an economy, once people can no longer borrow money to spend on clothes, food, nights out. Whole industries will suffer putting many people out of work.





===Please add more to this page if you can===

Revision as of 14:48, 10 February 2007

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=The Credit Crunch

The term "credit crunch" had been appearing more and more often in the financial press over the past year. Put simply, it is the tightening of available credit.

Globally at the moment there is a trend in interest rate rises around the world, people may think twice about spending any available debt. Banks may become twitchy about lending to consumers if the risks of defaults increases.

Possible Implications

The credit crunch will feed through all parts of an economy, once people can no longer borrow money to spend on clothes, food, nights out. Whole industries will suffer putting many people out of work.