Summary
The experts at www.thisismoney.co.uk describe a credit crunch as what happens when banks start hoarding cash like it is going out of fashion.
With America's mortgage market in meltdown, banks around the world are becoming very wary of whom they lend to. They are particularly averse to dealing with hedge funds and other financial institutions that might be exposed to repackaged sub-prime US loans - the ones doled out to low-income households.See the full content of this document
Extract
Factfile: The Credit Crunch
The result is that the cost of borrowing has risen well above target rates set by institutions li...
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