Credit Crunch Review!

After reading the long paper about Credit Crunch I found it's very useful and improved my knowledge a lot about Credit Crunch.
Well before I just thought credit crunch is just a situation when there is a huge and fast economic growth so that consumer's wealth increased a lot.The most valuable wealth that they have is houses.So that they put high prices on their houses and so that,poeple that want to buy a house,they have to borrow money from the bank which is called mortgage.But then suddenly house prices went down rapidly and then the situation happens when consumers buy a house that is less wealthy than the mortgage than they buy.So that they can't pay off their mortgages and this leads to condumer's confidence decrease a lot and also it will be more difficult to borrow money form the bank .There fore,investment of businesses and firms go down a lot as well.This leads to economy to slow down and recession and so on.

But after reading the passage,I know more and detailed about this economic situation.Well ,in my opinion,the clearest and the easiest part to understand was an introduction part and a Section 1- Background part.I knew more detail about the mortgage and also the situation when the banks sell their mortgages and earn profit,which is called "securitization."That's why in terms of high economic growth it's so easy to borrow money.Just because,the banks can make profit easily so that they make securitization.

The most interesting part I found was the back ground of the Credit crunch which explains what makes credit crunch to explode and why it happened?And more difficult one was the implications of the credit crunch which I didn't read quite carefully.

In conclusion,I think that this passage was very useful and easy to understand as well.Also It explains clearly about Credit crunch (well,I think too clear) and I think all parts were right.

Ahhhh ye ye...Stupid me!I misses 2 big mistakes in the passage.........