When these larger banks and lenders

When these larger banks and lenders felt the pinch of mortgages going into default, they then needed to compensate somehow and make sure that other areas of their financial portfolio were left intact.? This meant that they came up with stricter rules for who could get credit from them; when economic times are good, banks typically have less stringent credit requirements, but when times are bad, they Louis Vuitton Sunglasses clamp down on those requirements.

This scenario is referred to as the credit crisis or credit crunch.? These home mortgages that have been defaulted on have made it more difficult for the average consumer to get credit.? When the average consumer can no longer get credit as easily as before, he or she is less likely to spend money on non-necessities, whether on everyday items such as clothing and household goods, or for big ticket items such as electronics, appliances, and travel.? These home mortgages that are being defaulted on are now affecting the retail and service sector of the economy, as they are not doing the business that they once did.? All of these factors are what may very well lead to a recession.

And of course there are many other factors that have affected the sub-prime home mortgages crisis and that this crisis affects other industries well.? For example, home building has slowed to nearly a halt in many areas, idling literally thousands in the construction industry.Prada Sunglasses,  Because so many homes have been foreclosed on, this drives down home prices in these areas as other home sellers cannot compete with empty homes that banks need to sell quickly.? This means that many have actually lost equity in their homes as they are forced to lower their prices drastically if they want to sell at all.