Ten years ago today heralded the start of the ‘credit crunch’. The term which was unfamiliar to most people entered dictionaries in 2008. A credit crunch refers to the sudden reduction in the availability of credit or a sudden tightening in the conditions to obtain credit. In short, the availability of credit decreased sharply and the cost of credit increased significantly. In turn, this morphed into the global financial crisis or GFC and was accompanied by a global downturn. The rest they say is history. A decade has passed and hundreds of books have been written about the credit crunch and the global financial crisis that followed.
Over 8 years have passed since the start of the global financial crisis. This began with the so called ‘credit crunch’ in August 2007. More recently, those well-worn terms ‘credit crunch’ and ‘financial crisis’ have returned to the headlines of the financial media. While the last crisis was born in the USA, the land of the sub-prime mortgage, the next one could well be made in China.