Consider also the credit markets.

Not allowing the necessary consolidation is weakening credit markets, not strengthening them.

With credit markets impaired, further quantitative easing may still be needed.

Financial markets were eager to lend to these households, in part because the credit markets were deregulated, which served as an invitation to reckless lending.

Even those countries that were better prepared were made painfully aware of the after effects of crisis export markets collapsed, commodity prices fell, and credit markets seized up.

There is now a serious risk of a systemic meltdown in US financial markets as huge credit and asset bubbles collapse.

As a result, the major economies avoided a collapse of credit and production.

Frankly, had the models at least allowed for the possibility of credit market imperfections, the Fed might have paid more attention to credit market indicators as a reflection of overall financial market conditions, as central banks in emerging market countries do.

We must reckon with a huge increase in bankruptcies as well as with impaired credit markets and high unemployment.

Moreover, money markets, especially in Europe, remain traumatized by the festering global credit crunch.

The Senate Agriculture Committee proposes blocking deposit taking banks from making markets in swaps.

Credit Where Credit is Due

Unlike the days of yore, when cutting the price of credit could boost borrowing, quantitative easing purportedly works by stimulating asset and credit markets.

Irresponsible borrowing by governments in international credit markets requires irresponsible lending.

With credit markets impaired, the Fed could buy more government bonds or private sector debt.

That boost in assets will, in turn, enable local credit markets, such as micro finance, to begin operating.

US and Chinese leaders have fought the crisis with not only massive fiscal stimulus, but also deep intervention into credit markets.

The subsequent state directed WMP regulation put a brake on credit creation and sent Chinese stock markets plunging.

The sell off in international credit markets in March April 2005 led to the postponement or cancellation of some new bond issues but borrowers with high credit ratings had little trouble accessing financing.

It was also one of the largest markets for Albania apos s principal exports, such as electricity, minerals, agricultural products, and light manufactures.

These arrangements, most of which ended in 2010, responded to strains in short term credit markets and improved liquidity conditions during the crisis.

And then Greece, Ireland, and Portugal lost access to credit markets, requiring bailout packages from the International Monetary Fund and the European Union.

Who wouldn t want credit markets to serve the cause of home ownership? So we start by introducing some real competition into the mortgage lending business.

Rural Credit

Credit

Faced with a vicious combination of collapsing housing prices and imploding credit markets, the Fed has been aggressively cutting interest rates to try to stave off a recession.

They preferred less competition in credit markets not out of concern for the unwitting farmers, but in order to defend powerful lenders profits.

Now, the CDS market offers a convenient way of shorting bonds, but the risk reward asymmetry works in the opposite way.

For now, policymakers in countries with frothy credit, equity, and housing markets have avoided raising policy rates, given slow economic growth. But it is still too early to tell whether the macro pru policies on which they are relying will ensure financial stability.

In the US, reviving the credit markets requires stopping the mortgage defaults driven by negative equity.

The decisions of the Commission also outlined actions aimed at giving particular attention to the equal rights of women to own and inherit land and other property and to gain access to credit markets.

Global stock markets have, overall, reached new highs. And credit markets show low spreads, while long term bond yields have fallen in most advanced economies.

Debtor governments should call upon their own taxpayers to fund some of the national debt in order to avoid higher interest rates in credit markets.

But financial repression is hardly painless and almost certainly reduces the allocative efficiency of credit markets, thereby impacting long term growth.

European banks are far more thinly capitalized, and account for a much larger share of credit extended, than banks in the US, where much more lending originates in capital markets.

The answer may be that credit markets are more developed in advanced economies than they are in emerging countries, particularly in terms of the degree to which households are able to borrow.

Banks and credit card companies have become much more cautious about extending credit.

Well, credit is cheap.

Credit rating agencies, which play an important role in modern capital markets, completely failed in the years preceding the financial crisis.

The supply of credit, in other words, resulted from the demand for credit.

Arms market

As bad as things were, what caused credit markets to seize up was Treasury Secretary Henry Paulson s refusal to bail out Lehman Brothers.

Credit histories cannot be shared, because a credit bureau is just getting started.

Credit stopped flowing.

Unfreezing Credit