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They (and others) can thank Italian banks, whose liberal lending seems to have ignored the lessons of Japan's zombie lending cycle in the 1990s.
China's economy has continued to grow rapidly, bolstered in part by an enormous government stimulus package and liberal lending by state banks after the global financial crisis began in late 2008.
The increase in the delinquency rate is particularly worrisome, analysts say, because it suggests many of the new homeowners who benefited from more liberal lending standards may not be able to afford their mortgages during slow economic times.
A lawyer for Mr. Sambol said that the S.E.C.'s case was baseless and that it disregarded public statements Mr. Sambol made detailing the liberal lending practices at Countrywide.
While the rest of the world has struggled with a recession, China's economy has remained robust, in part because of an enormous government stimulus package announced after the onset of the financial crisis in 2008 and liberal lending by state banks.
Japan is responding by restricting its banks' overly liberal lending policies, placing more emphasis on both collateral and realistic ability to repay.
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The confidence stems from China's three-pronged effort — a combination of stimulus, liberal bank lending and broad government support for exports.
Its liberal supporters lend Vieques an element of "radical chic," the social phenomenon that Tom Wolfe sneeringly identified more than a quarter-century ago: there's a privileged class taking up the cause of a more downtrodden one.
ISTANBUL — When Recep Tayyip Erdogan was first elected prime minister of Turkey six years ago, his policy moves were brave and new, and this country's liberals quickly lent him their support.
Back on Dec. 5, Alan Greenspan warned that bankers who had been too liberal in their lending might be going too far in the other direction, and urged them not to "cut off credit for borrowers with credible prospects".
From its out-of-the-way headquarters in Scottsdale, Ariz., Finova Group became one of the fastest-growing independent finance companies in the 1990's by coupling aggressive acquisitions with a liberal policy of lending to charter airlines, fast-food franchisees and other middle-sized businesses.
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