In the financial market, the need to deleverage causes financial intermediaries to shed assets and stop lending, resulting in a credit crunch and tighter borrowing constraint for business, especially the small to medium-sized enterprises. Many times, this process is accompanied by a flight to quality by the lenders and investors as they seek less risky investment. However, many otherwise sound firms could go out of business due to the denied access to credit necessary for operation. Moreover, firms in distress are forced to sell assets quickly to raise cash, causing asset prices to collapse. The pressure of deflation increases the real burden of debt and spreads loss further in the economy.