Take Away English-The Credit Crunch 信贷紧缩

He might be feeling the pinch

If you watch the news in Britain or look at a British newspaper at the moment, a term you are more than likely to come across is 'credit crunch¹'. It has become a bit of a buzzword, but what does it mean?

Well, it's a financial term and it means that people in Britain are feeling the pinch right now. A credit crunch means banks have a shortage of money to loan people, which in turn has an effect on many other things. It's the effect this shortage of money has which is called the credit crunch.

The beginnings of this problem can be traced back to America, where people with a poor credit history were allowed to take out mortgages, which they were unable to repay.

Banks often lend money to and borrow money from each other, something we might not have realised they actually do. It was certainly cheaper for banks in America to get money this way, than to borrow money from America's Federal Reserve, their central bank.

A lot of these loans that people were unable to pay back were sold on to other banks, many of them in the UK.

As banks did not know the level of debt they were acquiring, they no longer wanted to lend money to or borrow money from other banks. There is now less movement of money between banks and therefore a shortage of available money.

Banks and other financial institutions have to compensate² for this by increasing fees and rates on products such as mortgages, loans and credit cards. Consequently, the average man on the street is affected³ as it is harder for them to borrow money with these increased rates.

Britons are also affected because the cost of living continues to rise; food, petrol and utility bills are all on the up and that means they have less money to spend on a day-to-day basis too.

So many Britons are seeking advice on how to tighten⁴ their belts, as it looks like the credit crunch may be around for some time.

GLOSSARY 词汇表

 

a term 术语，名词 feeling the pinch 手头拮据，缺钱 in turn 导致 mortgages 抵押贷款 financial institutions 金融机构 fees 费用 the average man on the street 一般人，平常人 petrol 汽油 （英式英语） on the up 稳步上升，上涨 seeking advice 寻求建议

buzzword 流行词 a shortage 短缺 poor credit history 不良贷款历史 debt 债务 to compensate 补偿，弥补 rates 利息 the cost of living 生活费用 utility bills 水电费 on a day-to-day basis 每日，日常 to tighten their belts 节省开支

1 crunch   

n.关键时刻；艰难局面；v.发出碎裂声

参考例句：

• If it comes to the crunch they'll support us.关键时刻他们是会支持我们的。
• People who crunch nuts at the movies can be very annoying.看电影时嘎吱作声地嚼干果的人会使人十分讨厌。

2 compensate   

vt.补偿，赔偿；酬报 vi.弥补；补偿；抵消

参考例句：

• She used her good looks to compensate her lack of intelligence. 她利用她漂亮的外表来弥补智力的不足。
• Nothing can compensate for the loss of one's health. 一个人失去了键康是不可弥补的。

3 affected   

adj.不自然的，假装的

参考例句：

• She showed an affected interest in our subject.她假装对我们的课题感到兴趣。
• His manners are affected.他的态度不自然。

4 tighten   

v.(使)变紧；(使)绷紧

参考例句：

• Turn the screw to the right to tighten it.向右转动螺钉把它拧紧。
• Some countries tighten monetary policy to avoid inflation.一些国家实行紧缩银根的货币政策，以避免通货膨胀。