•  G-20 policy-makers are now responding to the global crisis with renewed commitment to concrete initiatives and comprehensive plans. Our base-case projection is that these policies will be implemented in an effective and timely manner, and their impact will reach full force next year.
Now, of course, as we all economists know, when you cannot tell the difference, you charge everybody the same risk and hope that the risks will cover defaults. The problem with that system is that you are scared of somebody willing to accept a higher rate because he is more desperate.