What is another word for credit crunch?

242 synonyms found


[ kɹˈɛdɪt kɹˈʌnt͡ʃ], [ kɹˈɛdɪt kɹˈʌnt‍ʃ], [ k_ɹ_ˈɛ_d_ɪ_t k_ɹ_ˈʌ_n_tʃ]

The term credit crunch refers to a financial situation where the availability of credit is severely limited, leading to economic downturns. There are several synonyms for this phrase, including a credit squeeze, funding crisis, liquidity crisis, financial freeze, and investment drought. These terms indicate a sudden interruption in the flow of credit, which can have profound implications for businesses and individuals alike. The severity of a credit crunch can vary, depending on the underlying cause, such as the bursting of a housing bubble, rising interest rates, or a sudden loss in investor confidence. Regardless of the trigger, a credit crunch can have significant consequences for the economy as a whole, leading to reduced spending, investment, and employment.

Synonyms for Credit crunch:

How to use "Credit crunch" in context?

The credit crunch or financial crisis of 2007-08 was a worldwide economic downturn caused by significant reductions in the supply of credit. Subprime mortgage loans, backed by inadequate credit, became the focus of an unprecedented financial crisis in the United States.

Investors around the world viewed U.S. subprime mortgages as high-yield investments, and therefore snapped up the loans. When housing prices began to decline, many homeowners who had taken out subprime mortgages were unable to meet their payments. This decreased the availability of credit, which in turn caused a decline in economic activity.

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