Credit Crunch
An economic condition whereby investment capital is difficult to obtain. Banks and investors become weary of lending funds to corporations thereby driving up the price of debt products for borrowers.
Investopedia Commentary
Credit crunches are usually considered to be an extension of recessions. A credit crunch makes it nearly impossible for companies to borrow because lenders are scared and the rates are higher. The consequence is a prolonged recession (or slower recovery) resulting from the supply of credit having shrunk.
See also: Debt, Economy, Interest Rate, Recession
credit crunch