Well, a credit crunch is more often than not caused by a long period of careless and inappropriate (in other words the banks have borrowed more money than they can afford) lending which results in losses for lending institutions and investors in debt when the loans turn sour.
A knock on effect of the credit crunch is the reduced availability of credit. The cost of accessing credit is increased and thus raising interest rates.
This loss in credit available is making times hard for everyone around the globe, the changing of money from business to business or person to person is dramatically affected and even sound businesses are finding that cash flow is become harder and harder each month, their bank loans are slowing down and generally everyone is feeling like the World is going to stop spinning - it's not is it?
The reason I am bringing this subject up on my Scoliosis blog is because a few months ago, paying for my…