EXPLAIN THE CRDIT CRUNCH

[Anonymous]

I am hearing the words "credit crunch" in the news. Are they talking about banks tightening up on lending? I

[MidnightVoice]

In simple terms - yes. Stricter requirements for borrowing, lower limits, higher interest

[Anonymous]

credit crunch -- A sudden reduction in the availability of loans and other types of credit from banks and capital markets at given interest rates. The reduced availability of credit can result from many factors, including an increased perception of risk on the part of lenders, an imposition of credit controls, or a sharp restriction of the money supply.

another definition...

credit crunch -- slang for a general economic condition in which loans are harder to obtain.


Do some reading on this- it is quite interesting reading.
http://ml-implode.com/

[Anonymous]

Okay I wasn't far off but I like to make sure that I am thinking in the right direction.

So basically now..FICO must revamp. I hear people stating that FIco may not implement the changes..

I am of the school of thought that FICO came into existence and the whole credit scoring system to

notify banks of their risk for loaning to consumers. REMEMBER the STOCK MARKET CRASH..

that is why it is so important. I want for FICO to implement changes to improve the banks risk to us consumers. THe people who are crying about it...have to fear..what they have done on their own......

so if their scores drop..so be it...