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Low interest rates may cause other problems for the sector, said Andrew Bailey, head of the prudential business unit at the FSA.
It said dozens of websites had shut as a result of borrowers defaulting, and claimed this was an early warning that rising interest rates "could pose problems" for the sector in Europe and the US.
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People will always be sick, so health care companies will always have a market (the introduction of Obamacare seems to have been no problem for the sector).
That is a particularly acute problem for the sector, in which most companies do not have marketable products and profits and sell themselves on their promise.
"I thought this was a real opportunity to do something worthwhile and help address what was clearly an emerging problem for the sector, donors and the public," he says.
However, it will have to be careful to avoid aggravating the problem by selling JGBs too aggressively, which would simply depress their value further and which would also cause wider problems for the financial sector at large.
"The size of the potential problems for the banking sector both in Europe and in the US is still very uncertain and might be very large and this is what is keeping interbank markets and money markets dislocated," said Marco Annunziata, chief economist at UniCredit.
But he adds: "CCS doesn't solve the emissions problems for the power sector.
Solve problems for the electricity sector and the U.S. Department of Energy will give you funding.
In location problems for the public sector such as emergency medical service (EMS) systems, the issue of equity is an important factor for facility design.
This is causing unforeseen problems for the industrial sector of the economy," the letter reads.
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