A credit crunch (credit crisis) is a reduction in the general availability of loans (credit) or a sudden tightening of the conditions required to obtain a loan from the banks. A credit crunch generally involves a reduction in the availability of credit independent of a rise in official interest rates. The following video explains credit crisis in simple terms with the help animation. The goal of giving form to a complex situation like the credit crisis is to quickly supply the essence of the situation to those unfamiliar and uninitiated.
Explains current credit crisis in USA and around the world with the help of simple animation and video.