Risk that no one will be able to borrow any money
Risk that no one will be able to borrow any money, the extension of credit comes to halt, and companies have no working capital (at which point, in effect, capitalism breaks down and you are left with a barter economy).
Immediately related elementsHow this works
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The Global Financial Crisis »The Global Financial Crisis
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Immediate triggers of the financial crisis? »Immediate triggers of the financial crisis?
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Sudden evaporation of market confidence/trust »Sudden evaporation of market confidence/trust
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Risk that no one will want to lend anyone else money »Risk that no one will want to lend anyone else money
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Risk that no one will be able to borrow any money
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