Canada's stockmarket the TSX, is in free fall. As of 1:00pm the TSX was down 580points, it has lost 2000 points in two weeks. Erasing all the gains it had made this year. Both Asian and European markets are in freefall aswell.. Not since the tech bubble burst has such a sell off been seen.
TSX plunges as sell-off deepens
All of this is being caused by a credit crunch in America. Because of the housing boom, Loans were being giving to people with iffy credit, now many of those loans are going into default as those people can no longer make the payments. This means that lenders are loosing confidence, and are either stopping to lend, or raising interest raits.
"What we have now is a brewing crisis in confidence. Lenders are afraid, and they are beginning to stop lending or they're charging higher interest rates to lend, which means that whole era of cheap money that's fuelled so much of the global activity is ending,"
TSX plunges as sell-off deepens
All of this is being caused by a credit crunch in America. Because of the housing boom, Loans were being giving to people with iffy credit, now many of those loans are going into default as those people can no longer make the payments. This means that lenders are loosing confidence, and are either stopping to lend, or raising interest raits.
"What we have now is a brewing crisis in confidence. Lenders are afraid, and they are beginning to stop lending or they're charging higher interest rates to lend, which means that whole era of cheap money that's fuelled so much of the global activity is ending,"
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