First of all, let us take a look of what we mean by a credit crunch. In financial terms, a credit crunch directly implies the tightening of liquidity. That is, ideally everyone runs out of cash, irrespective of whether the entity is a banker, a businessman, a corporate or anyone (or anything) else. These days, a major part of the world is passing through one of the nastiest credit crunches ever experienced.
In such times of financial crisis, everyone has started spending less and less. People ...Read the rest of this entry »