Lenders into the so called “sub prime” market attempted to keep the pace of business up as the US housing sector slowed during last year. But they could do this only by lowering lending standards. Before long, arrears began to rise as some borrowers struggled to meet their commitments.
*  *  *  Ladies and gentlemen, Policymakers are fighting on many fronts in this crisis. Around the world, central banks have responded with massive interest rate cuts and an extremely large-scale provision of liquidity, while national governments have put together significant economic stimulus packages and bank rescue measures.