What does credit crunch means? The banks has insufficient funds for businesses to borrow allowing them limited credit with a higher rate in borrowing or receiving no credit at all. 

 

How did this happen?  The financial institutions issue an infinite amount of loans to the housing market; it started with sub-prime loans and from there its history. 

 

Why did the government/financial institutions let it go this far? Probably to worry about the war, what do you think?

 

When they first notice the signs of the finances decreasing, why was a back-up plan implemented?  

 

On September 28, 2008, the bailout plan was rejected.  The government will retry in obtaining the bailout plan, what if it is rejected, again? What is next for the economy?