Show Summary Details

Page of

PRINTED FROM OXFORD REFERENCE (www.oxfordreference.com). (c) Copyright Oxford University Press, 2013. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single entry from a reference work in OR for personal use (for details see Privacy Policy and Legal Notice).

date: 07 July 2020

Credit Crunch 

Source:
A Dictionary of World History
Author(s):
Anne KerrAnne Kerr, Edmund WrightEdmund Wright

The banking and financial crisis that began in 2007, so-called because a principal characteristic was a catastrophic sudden tightening in the availability of credit. From the 1980s onwards, new techniques for risk management and the loosening of regulations led to a huge growth in the global financial services industry. There was a massive expansion in the availability of cheap credit, and loans at relatively low interest rates were offered to customers previously considered bad credit risks. In the mid-2000s concerns grew about the resulting levels of debt and the security of a financial system increasingly reliant on the repackaging of this debt in complex derivatives products; but the trigger for the crisis was ‘sub-prime’ mortgages in the USA. Many mortgages had been sold, sometimes fraudulently to unsuitable borrowers, on the assumption that house prices would continue to rise. This assumption proved false when the resulting US house-price bubble burst in ... ...

Access to the complete content on Oxford Reference requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.