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Ben Bernanke in dilemma over bank bail-out

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“INDICATIONS of contagion have started to appear in other credit markets...defaults in the US markets are spreading to higher quality segments of the US mortgage market and to credit-card debt and automobile loans...balance sheets remain vulnerable to a further deterioration in the credit quality of assets...” There’s more, but you get the drift of the draft report put before EU heads of government last week.

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