Timeline: Global credit crunch. The full story...
Two years ago, few people had heard of the term credit crunch, but the phrase has now entered dictionaries. Defined as "a severe shortage of money or credit", the start of the phenomenon has been pinpointed as 9 August 2007 when bad news from French bank BNP Paribas triggered sharp rise in the cost of credit, and made the financial world realise how serious the situation was. The roots of the credit crunch, however, started earlier. A quick guide to the origins of the global financial crisis. Most analysts link the current credit crisis to the sub-prime mortgage business, in which US banks give high-risk loans to people with poor credit histories. Global downturn: In graphics. This is one of the most tumultuous times on record in the global financial markets.
Huge amounts of money have been committed in financial support for banks. Governments are spending billions of dollars to kick-start economic growth. The Financial Crisis Timeline. February 2007 February 27, 2007 | Freddie Mac Press Release April 2007 April 2, 2007 | SEC Filing.
