credit crunch

A credit crunch is a direct result of a recession in an economy. Due to the bleak finanacial state of a country, banks enforce a stricter lending policy making loans almost unattainable and the availability of credit scarce, which is deemed a "Credit Crunch" or "Credit Crisis."

By actioning a credit crunch, it is hoped that the economy can revive itself, but in order to do so many cuts have to be made that have an effect on everyone. Government spending is cut, jobs are lost due to wage cuts, job availability is decreased and taxes are raised in a bid to balance out the financial situation. You'll find how people are coping and useful advice about the credit crunch at Credit Crunch Blog and at The Credit Cruncher.

The crisis is often caused by careless lending on the country's behalf and over-spending which thus leads to debt, increased interest and the need to borrow amounts that cannot be paid back.

Once an economy has recovered however, the cycle can begin again and hopefully be avoided in the future.

You can read an article on how the credit crunch is effecting 2010 graduates at Blogcritics Magazine.

by Rebecca Fordham Are you a writer, passionate about this or any other topic? Join Blogcritics!

Original Technorati articles tagged “credit crunch”

• in Technorati Women
  Unemployment is the Biggest Global Fear
  Unemployment tops the list of major global concerns according to a new BBC World Service study.
  by cmimanagers / on Dec 12, 2011
• in Finance
  Portugal, Spain Worry Contagion from Ireland
  Ireland authorities deny that they need EU aid, but Portugal and Spain urge it to act fast to prevent contagion.
  by vijji / on Nov 16, 2010

Latest blogosphere posts tagged “credit crunch”

 

• Sir Mervyn King: dont demonise bankers

  
  The Guardian - guardian.co.uk — Authority: 986
  Outgoing Bank of England governor blames regulatory failure for banking crisis and not individuals The outgoing governor of the Bank of England has called on the British people not to "demonise" bankers for the financial crisis. Sir Mervyn King said on Sunday that the failings of the financial and regulatory system ...
  4 days ago

• Just Like Isabel Marant...

  
  — Authority:
  Spotted this cotton jersey top, shown on the left, at Oasis the other day and I couldnt help but link it to the black and white floral-print top embroidered with a bold red motif designed by Isabel Marant . I prefer the original design by  Marant   as jersey tops dont usually flatter me. Plus the ...
  1 week ago

• HBOS Leadership without the benefits of hindsight

  
  — Authority:
  The following post anticipated the financial crisis of 2007-8 under an earlier title. HBOS changes: Too little, too late? It is reissued following the news this week of the fall from grace of the bank’s three leaders Over the last few weeks, pressure has increased on HBOS executives following a government ...
  1 week ago

• RBS boss Hester "desperate for people to have to borrow to eat"

  
  — Authority:
  From the BBC and the BBC : Royal Bank of Scotland is "desperate" to lend to UK households who need to "borrow money for food", the banks chief executive has claimed. One in five UK households borrowed money or used savings to cover food costs in April, a Which? survey says. In an interview with the Sunday Times, ...
  2 weeks ago

• Preen x ALDO Rise

  
  — Authority:
  Speaking of ridiculously overpriced heels, how do you feel about purchasing a pair of shoes straight off the runway, but with a very veryyyy reasonable price tag. Ladies, were talking two digits here. Yup, I was walking around the Avenues the other day when I spotted an ad announcing the arrival of  Preen s ...
  2 weeks ago

• Cranberry & Cinnamon Cupcakes With Chocolate Maple Buttercream

  
  — Authority:
  I was having a rummage around the kitchen the other day looking for ingredients to bake with. I had all the basic cake making ingredients to hand, but didnt just want something plain. I did consider going down to the shops to see what interesting ingredients I could find but I was feeling lazy. So instead I went on a ...
  2 weeks ago

• May Day poetry: Credit Crunch Suicide from Anna Chen

  
  — Authority:
  Had a lovely gig last night at the Morning Star s May Day celebrations in Kilburn, London. Also playing, singer songwriter Sean Taylor, a wonderful guitarist. Q Magazine called him, "A bluesey devotional intensity that rightly draws comparisons to John Martyn". And they;re right. Khamis and J-Mac were our DJs for ...
  3 weeks ago

• Just Like Louis Vuitton...

  
  — Authority:
  Spotted this checkered long jacket at Zara the other day and instantly remembered Louis Vuittons Spring/Summer 2013 collection of white and yellow checkered dresses and skirts with matching tops, Im loving this color combo! It just proves that checks dont always have to be black and white to look chic. And of ...
  3 weeks ago

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