But concerns that China's economy was overheating led to action by the country's government last year, to cool down a construction boom by squeezing credit.

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But large lending institutions such as Citigroup, Merrill Lynch and Countrywide Financial took billion-dollar hits from the defaults, consequently squeezing the credit markets.

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It should be pumping out credit to meet market demand rather than slowly squeezing it, as it has inadvertently been doing for months.

FORBES: Saline tube is a p.m.