It is therefore clearly going to be some time yet before employment regains its pre-crisis levels. Weak labour market outcomes, of course, mean subdued growth in household income, and the combination of job losses and low income growth has led to a big rise in mortgage foreclosures. Almost one in twenty houses that are mortgaged in the United States is in foreclosure.
We allowed certain types of assetbacked commercial paper (ABCP) 13 to substitute for other, more-liquid collateral pledged in the LVTS, which, in turn, could be used more easily by financial institutions to obtain marketbased funding. Later, in June of that year, to provide flexibility, we also allowed U.S. Treasury securities.