CREDIT CRUNCH The financial distress credit has severely hit the financial market from western countries to the third world. Since September 2008, the financial sector has primarily been affected by a massive loss derived from house burble crisis. The overall economy is in a bad shape. The investors have lost their retirement investment. The U.S. government has elaborated the causes of credit crunch. The Financial institution have issued the sub prime rate to their potential clients; therefore, the financial institutions wont be able to function at normal pace when the mortgage recipients are defaulting to their obligation of paying off their mortgage monthly payment to their creditors( financial Banks). Thus the bank does not have enough money to pay also to their turn, their creditors or counterpart businesses. Since 1998 the world economy has encountered deregulation in a free market financial system, lack of oversight about financial dealings, and now the uncertainty has taken over in the financial system about the future of a business prospect. The Deregulations ......

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