Biz, World: An example of the mushroom effect of the credit crunch
- cause The Royal Bank of Scotland, well-known for its globalization efforts, has been ordered by the British government to pump billions into the British credit market.
- effect So RBS can redouble its efforts in its homeland, the company has recently started to scale back and tried to sell a number of its global endeavors – in countries big and small.
- result Due to the new tightening of credit in developing countries such as Vietnam and Romania, the world credit market takes a hit and begins to constrict even more. Yikes. source