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

Pawning jewellery is not merely a fast way to land cash S 1,300 in Ms Amirthalinga's case but almost as cheap as unsecured bank loans.

Credit tightened sharply.

Consumer credit began in China only in the late 1990 s, with regulations allowing banks to offer mortgage loans, which now amount to about 10 of total loans.

Consumer spending is plummeting, as expected.

It's also good with credit.

Demand for consumer products typically follows an S curve.

Only consumption is lagging.

Nowadays prices of commodities are very high.

Senator Bernie Sanders, Clinton s Democratic rival, actually proposes to expand the programs unfunded liabilities.

Panic ensued and credit stopped circulating.

The differences in price for many other consumer goods is even larger.

There was also a commodity bubble and a private equity and hedge funds bubble.

Their consequent reluctance to lend constrains investment.

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

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

In both cases, increases in asset values led US households to think that they had become vastly wealthier, tempting them into a massive increase in their borrowing and spending for houses, automobiles, and other consumer durables.

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.

Its credits and swaps have never been activated.

Moreover, mortgages are usually securitized.

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

And, on both sides of the Atlantic, that decline is likely to undermine consumer spending.

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

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

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.

OK, so maybe it is too soon for the world to start toasting America s insane consumption patterns.

Even though American pride and consumer spending would be dented, the damage to the world economy would probably not be huge.

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.

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.

Short term bank lending from abroad is unstable and therefore dangerous

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

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

But unemployment has risen even faster and further than expected. Combine this with the continued fall in housing prices, and it is understandable that consumer spending remains depressed.

Combine this with the continued fall in housing prices, and it is understandable that consumer spending remains depressed.

Though lower oil prices depress consumer prices, they should boost production and overall GDP.

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.

Some local borrowing can be justified by the central budgetary allocation to local projects.