This financial crisis was triggered by the US subprime meltdown, which brought massive losses to major banks like Citicorp and investment banks like Merrill Lynch. Measures taken by the central banks, cutting the base interest rates and extending credit to the major banks, has eased the immediate liquidity crisis. Now, even though the immediate liquidity crisis has eased, the banks have become much more restrictive in their lending, imposing tighter conditions and charging higher interest rates (despite the fall in central bank rates). Moreover, a collapse of China