The global financial system remains under severe stress. Worsening economic conditions are producing new, large write-downs for financial institutions. In response, those institutions are paring back their balance sheets through asset sales and the retiring of maturing liabilities, including credit extensions. Those actions have increased downward pressure on asset prices and reduced credit availability. Adding to strains in the financial system are continuing job losses and reductions in overall economic activity which contribute to increases in defaults on mortgages, household loans, and business loans.