credit crunch

 The UK Financial Services Authority has plans to require mortgage lenders to check the income level of all borrowers for their ability to repay the loans. The regulators seeks to prevent financial companies from providing mortgage credit to "liar loans" blamed for helping to fuel bad debt problems at the heart of the credit crunch.

The FSA plans to impose affordability tests for all mortgages, but stopped short of imposing ratio limits that could have effectively banned loans for 100 percent or more of property prices.

 As everyone of us waits for the economic recovery and stability to return to the United States there are still many challenges that are not only coming out of external circumstances independent of our nation but a great number of such obstacles on the way to recovery are being created inside. While small businesses in the US create over 50% of jobs in America there is financing for these companies and firms as banks and other money institutions refuse to provide credit.

 While every expert and analyst gives different names to the shape of recovery that will be peculiar to the United States David Roche, global strategist at Independent Strategy, added a new term to the common trend.

"You want to know my shape? My shape is a toilet shape," Roche said on "Squawk Box Asia." "Because I think that's where 14 percent of (gross domestic product) in terms of spending and central bank help will disappear."