Credit crunch

Oh....I just recognise that I haven't done my post about Credit crunch....Ok...I'll start it...A lot of Homework....
We are talking about credit crunch.Firstly,what is credit crunch?Crunch credit is the situation when suddenly decreased credit sources (sources for loans) or the sudden increase in the cost of bank loans,increasing the interest rate.It means it's hard to borrow and lend money from the bank!

There are a number of reasons explain why the bank suddenly required level of borrowing costs higher, or make access to loans more difficult:

• Firstly, this may be due to the bank predicted a decline in the value of the fund signed (to make sure the thinking to ensure the repayments), or predict increased risks related to the ability payment of the bank in the banking system.
• Secondly, this may occur due to changes in monetary policy (for example, increased interest rates) or by government measures to control direct or request the bank participate in less than lending money

Credit crunch in 2007 is consideredto be as the cause of Credit Crunch in the market, the U.S. credit crunch now. Because banks don't allow to borrow much money so Fed should always be looking for any measures to put in the liquidity into the market and stimulating the bank extended credit terms, bringing the development of economy.

This is the credit crunch,enjoy your meal...Kekekeke...(joking)