Credit Crunch and Economic Crisis

Crisis from 2007-2009

A credit crunch refers to a lack of credit in the financial system

A credit crunch occurs when banks for various reasons reduce the amount of cash available to loan or make lending conditions difficult

This means that people started buying and buying things with their credit cards and they couldn't afford it and when it was time to pay they didnt have money so the bank took their cars their homes and the thing of value they have to pay what they are missing.

Banks were giving money and credit cards to people but they didnt pay it.

Crisis in USA housing marketing
Started in April 2007
Prices fall down
Supreme loans rise to record levels