Phrasing Offers Assistance in Understanding Credit Crunch

By Cunniff, John | THE JOURNAL RECORD, June 1, 1990 | Go to article overview

Phrasing Offers Assistance in Understanding Credit Crunch


Cunniff, John, THE JOURNAL RECORD


How can surveys show no credit crunch on a national scale when so many businesses complain about financing restrictions?

It will be a year before enough hard data are available and analyzed to say whether or not a national credit crunch exists today, which means, of course, that the answer will be too late for practical purposes of policy.

Meanwhile, anguished shrieks of pain can be heard from operators of startup companies, from those involved in any way with real estate or building, from companies with little collateral to offer, and from otherwise solid outfits.

Have their complaints fallen into that no-man's land, that intellectual desert where economists debate, equivocate, qualify and toss questions from one hand to the other and never reach even a tentative conclusion?

Some help in resolving the apparent contradiction - between those who rely on economic statistics and see no credit crunch, and those small companies that complain of being squeezed almost to death - can be found in phrasing.

Most surveys, for example, make a distinction between a general credit crunch and regional ones. A key phrase in this distinction is ``national credit crunch.'' To many economists, anything regional doesn't qualify.

Surveys also tend to look at business in general, whereas most complaints seem to come from small or medium-size businesses, which often use real estate as collateral. Some economists tend to think only in big-business terms.

And, it has been argued, those companies that indeed are hurt, even when they represent only a small fraction of the whole, squeal so loudly there is a tendency to think the entire barnyard is in an uproar.

One of the most cogent explanations offered is that of economist William K. MacReynolds, who makes a sharp distinction between a general credit crunch, which he says may not exist, and a specialized one, which he says does exist.

MacReynolds' thesis, developed for the U.S. Chamber of Commerce, is not a cop-out but an explanation. While stating that ``to date, there is no conclusive evidence that a general credit crunch exists,'' he provides this observation:

``However, there is a clear sense from published economic data, credit market behavior, new credit availability, bank examiner actions, bank reactions, and anecdotal evidence provided by bankers and small-business people in more than half the states in the country that a credit crunch is underway. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Phrasing Offers Assistance in Understanding Credit Crunch
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.