First, for some time, the effects of the damage will be seen substantially on the supply side, including production capacity, which will have an impact on economic activity, mainly in production and distribution. Since there are many parts manufacturers for automobiles and electronic devices in the quake-stricken areas, supply chains at home and abroad will be forced to be cut off, albeit temporarily.
Innovation has brought about a multitude of new products, such as subprime loans and niche credit programs for immigrants. Such developments are representative of the market responses that have driven the financial services industry throughout the history of our country.