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

Investors would be able to buy Guatemala s coffee bonds, Côte d Ivoire s cocoa bonds, Liberia s rubber bonds, Mali s cotton bonds, and Ghana s gold bonds.

Barrels, Bushels, and Bonds

Panic ensued and credit stopped circulating.

Credit tightened sharply.

Jamaica, for example, would issue aluminum bonds Nigeria would issue oil bonds Sierra Leone would issue iron ore bonds and Mongolia would issue copper bonds.

Nigeria would issue oil bonds Sierra Leone would issue iron ore bonds and Mongolia would issue copper bonds.

Ban the Common Bond

In the US, the interest rate on government bonds now rises from 1.80 at five years to 2.86 for 10 year bonds and 3.70 for 30 year bonds.

It's also good with credit.

Its credits and swaps have never been activated.

Brady Bonds For the Eurozone

The government forcibly rescheduled the public debt holdings of these funds, known locally as AFJP.

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

Expensive government bonds will shift demand to mortgage or corporate bonds, pushing up their prices.

Aren t bonds safer?

The EFSF buys the bonds of the countries which find it difficult to finance themselves in the marketplace (for example, Ireland) and issues bonds that are AAA rated.

Bonds were issued to finance a war.

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

And the European Central Bank has begun to buy government bonds, including those of Greece, at prices well above those that would prevail in a free market.

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.

A very large share of these are US treasury bonds and mortgages.

We need far more and better catastrophe bonds.

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

Following this approach, the country offers to exchange old bonds for new bonds with a lower face value and or lower interest payments and longer maturities.

Create Growth Linked Bonds

These bonds are referred to as callable bonds.

If rich country central banks can buy long term bonds, then emerging country central banks can buy dollar denominated bonds.

This basket should include, at the very least, preferred shares and bonds.

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.

Creditors could be offered these par bonds, or a shorter term bond with a higher coupon but with debt principal marked down. The new bonds could be known as Trichet or Merkel Sarkozy or Honohan bonds whatever works to build consensus.

Upon the issue of such an ECB bond, the ECB would simultaneously open a debit account for the member state on whose behalf it issued the bond.

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 ).

So nothing stopped the banks from selling lemon bonds.

The decision to buy Greek bonds directly was not unanimous.

Indeed, demand is outstripping supply.

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.