Credit Crisis

What Does it Mean?
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A crisis which occurs when several financial institutions issue, or were sold through securitization, high-risk loans that start to default. As borrowers default on their loans, the financial institutions which issued the loans stop receiving payments. There follows a period in which financial institutions redefine the riskiness of borrowers, making it difficult for debtors to find creditors.

Investopedia Says:
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In the case of a credit crisis, banks either do not charge enough interest on loans or pay too much for the securitized loan, or the rating system does not rate the risk of the loans correctly