Losses are spreading from sub prime to near prime and prime mortgages, commercial mortgages, and unsecured consumer credit (credit cards, auto loans, student loans).

One place to start is the tax deduction for interest payments on home mortgages.

Panic ensued and credit stopped circulating.

Credit tightened sharply.

It's also good with credit.

Its credits and swaps have never been activated.

Banks magnify the boom by making credit too easily available, and they exacerbate the bust by withdrawing it too abruptly.

Delinquencies, defaults, and foreclosures are now spreading from sub prime to near prime and prime mortgages.

There was a housing bubble, and loans were made on the basis of inflated prices.

As their capital declines, so, too, do their future loans.

Short term bank lending from abroad is unstable and therefore dangerous

Public sector firms have incentives to lobby for subsidies, protection and cheap credit.

Their consequent reluctance to lend constrains investment.

Instead, the money could be returned to donor country citizens through tax deductions or income transfers, and they could decide how to help those in need.

Pinjaman Tiongkok kepada Brasil hampir sebesar 1 PDB nya, sementara pinjaman yang diterima Meksiko relatif kecil (lihat grafik).

To be sure, some domestic banks continue to provide credit.

But when the entire international system becomes entwined with an excessive amount of short term inter bank lending, the world economy becomes subject to financial panic.

Moreover, mortgages are usually securitized.

Short term inter bank loans are seemingly less risky than long term lending.

Banks and other lenders are extending credit to lower quality borrowers, to borrowers with large quantities of existing debt, and as loans with fewer conditions on borrowers (so called covenant lite loans ).

Households are running scared, so they cut expenditures as well, and businesses are being dissuaded from borrowing to finance capital expenditures.

Politicians gained influence and popular support by directing state owned banks to make loans to favored constituencies.

The World Bank s traditional instruments have been (and still are) low interest loans, interest free credits, and grants.

German banks grant mortgages only to a maximum of 60 of the value of a house, instead of the 100 mortgages that were frequently seen in the US and United Kingdom.

In your opinion, to what extent is the demand for credit by business owners being met?

Why, then, were the bank loans so short term and therefore so prone to panic?

If the number ends in 6, its square will end in 6, similarly for ending in 76, 376, 9376, 09376, ... 1787109376.

Growth requires financial institutions that lend to domestic firms.

Yet the EBRD does more than make much needed loans.

Credit will soon come to everyone else as easily as it has to the banks.

The government will provide interest free loans to firms that participate in the program.

It is astonishing that sub prime mortgages and their like were repackaged and resold in securitized form.

In contrast to 1929, credits are not now being throttled on the contrary, public money is being pumped into banks and the economy.

Such continuous and willful blindness helped corruption to thrive and a tiny group of oligarchs gain control of the economy.

What European leaders may want most from the Fund are easy loans and strong rhetorical support.

Since the loans that had been offered were so short term, they could be pulled out nearly all at once.

A prudent lender should have considered these facts before making the loans.

The old NPL problem was resolved, primarily by establishing asset management companies to take over doubtful assets, and injecting new capital into the commercial banks.

It is a composite accounting unit in which the IMF issues credits to its members.

Now, reported NPLs amount to little more than 1 of assets.

In today s credit crunch, as in the Great Depression, central banks lend at practically zero interest rates. Depositors are paid almost nothing on their deposits.

In today s credit crunch, as in the Great Depression, central banks lend at practically zero interest rates.

Now, he and his family live off credit from three banks.

Because CO2 capture and storage adds costs and yields no revenues, government support is needed to make it happen quickly on a scale large enough to affect global emissions. At the least, companies should earn carbon credits for the CO2 they capture and store.

People with fixed rate mortgages are also vulnerable to rate increases, though less directly.