Tuesday, 20 October 2009

Where did credit crunch come from?

The unpredicted collapse of the international economy led to the birth of the Credit crunch. To be honest, be fore the tremors swept through banks and multinational companies i had never heard of the term let alone thinking about it! Just like the sudden advent of the collapse, the term appeared on the scene so swiftly. Everyone was talking about it like Tsunami or the invasion of Iraq! Strictly speaking, have you taken time to think about this newly coined word? May be you have. If so, then you could be among few analytical minds on our planet!

Back to our credit crunch; according to princeton credit is money available for a client to borrow or an arrangement for deferred payment for goods and services; only to mention. On the other hand, Crunch is to chew with force and noise according to dictionary.

So to put it precisely, when we talk of the credit crunch, we mean to say that deferred payment has been chewed with force! This would mean that any arrangement payment deferred has incapacitated in one way or another. But is this true? I do not think so because, already we are hearing of Banks planning to pay bonuses resulting from huge profits! I will leave the profiteering to the experts in the area.

The point is that we now have a new term in our vocabulary in the name of credit crunch. My final word is as you earn your hard earned cash by googling, remember, there is someone planning to credit-crunch you.

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