Credit Crisis Worsens

Banks are turning away an increasing number of customers, amid growing fears of the problematic credit crisis.

Hoping to rid themselves of troubled loans – much like the ones that contributed to the subprime mortgage crisis – lenders have increasingly been holding borrowers to much higher standards. The higher standards, resulting in fewer loans, leaves far too many unsold homes on the market, but it does not stop there.

Small businesses and entrepreneurs also feel the pain. They are unable to get the necessary money to continue their ventures or purchase the needed materials to supply customers. These actions result in more job losses and a downturn in the economy.

In addition to being much tougher to get credit, it also appears that credit is becoming much more expensive as well.

Source journalgazette.net:

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