The Bright' Side Of The Credit Crisis / Finance

A credit crisis, also known as a "credit crunch" or "credit shock", occurs when there is a rapid reduction in the availability of loans from banks. This is caused by loans going sour, forcing the banks to tighten up lending standards.

Credit shocks create both positive and negative effects in the economy. By examining these effects carefully, we can gain a greater understanding of how credit shocks work and what we can learn from them. Read on to find out more.

Credit shocks have several negative effects on both consumers and businesses. Some effects are felt right away, while others take time to be seen.

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