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What is a Credit Crunch?

An Animated Explanation of the Credit Crunch

ABC News tried to come up with the simplest explanation for the credit crunch and why the government has been debating a potential bailout, and its efforts resulted in a quick cartoon. Treasury Secretary Paulson and both Presidential candidates say that without a bailout package, there will be a credit crunch where businesses won't be able to meet payroll and consumers won't be able to get loans for college and homes. Check out the animated explanation of the credit crunch below.

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