Look Credit Score Before Giving Credit

Sub-Prime Mortgage mahem in the U.S. has taught one very important lesson for lenders across the globe that a lender must check the applicants credit score before sanctioning the loan.
Markets across the globe are tanking for the past few days as investors/traders are now very much concerned about health of the credit system in major economies in the developed world and hence taking a very cautious and selective approach towards financial markets.
In 2004, 2005 stock markets crashed by fears that chinese economy will slow down and that lead to sell off in both commodities and stocks.
Now in 2007, Financial stocks are causing the sell-off.
One is left with guessing what's next.