The impact of the current global financial crisis, which originated with U.S. subprime loans and was exacerbated by the collapse of Lehman Brothers last September, has gone far beyond the financial markets, as entire economies are now suffering from sharp declines in demand due to tighter reins on credit, which include stricter screening of loan applicants. Especially hard hit is the automobile industry.

New car sales in the United States in November fell 36.8 percent from a year earlier. The U.S. Senate rejected a request from the Big Three American automakers for injections of taxpayer money. They now must rely on funding under the Emergency Economic Stabilization Act approved by both houses of Congress in October. The share price of General Motors Corp., which had stood at $50 to $55 in December 2003, plummeted to less than $5 in December.

Also badly affected are Japanese car manufacturers, which have relied heavily on export markets. Toyota Motor Corp. has announced that it expects a net deficit of ¥150 billion in operating profit for the current fiscal year ending March 31, an incredible turnabout after it boasted an operating profit of ¥2,270.3 billion for the previous fiscal year. Honda Motor Co. also said the second half of the current fiscal year will show red ink.