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Almost all the region's countries have current-account surpluses, though India and South Korea have deficits, which explains why they have seen large currency depreciations this year.Most Asian households and companies are also modest borrowers.
Those sliding into foreclosure today are more likely to be modest borrowers whose loans fit their income than the consumers of exotically lenient mortgages that formerly typified the crisis.
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Information about the value of the homes and the borrowers' modest financial positions could have been easily discovered had someone sought the information.
It began aggressively offering loans to first-time home buyers and to borrowers with modest incomes.
Subprime loans have helped borrowers with modest incomes and poor credit buy homes, but the loans usually carry higher fees and interest rates, as well as a higher risk of foreclosure.
A long line of studies has found that the benefit to borrowers is relatively modest, less than one percentage point.
When a borrower made only modest payments, the shortfall was added to the principal balance on the loan, meaning that the mortgage would grow in size.
A few studies, notably one led by M.I.T.'s Esther Duflo and others, concluded that benefits for microfinance borrowers were real but modest at best.
The Fed's rate cuts have led to a more modest decline in mortgage rates for borrowers with good credit, but they have done little to ease the broader credit squeeze.
While long-term rates on loans of the highest borrower quality are still modest by historical standards, the pace at which the debt has climbed, has made prospective American lenders draw in their horns.
Since the Paulson plan includes only a subset of borrowers, it will have a modest effect on overall foreclosures, and on resulting downward pressure on prices.
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