The Crisis is Getting Worse

The crisis is worse now because the dealer does not pay enough money, but governments have injected them and inject billions of euros. The European Commission has accused the banks of prolonging the crisis by not granting credit and finance ministers of the European Union formally asked them to provide money to revive the economy. The Minister of Finance of the Czech Republic (the country chairing the EU until July), Miroslav Kalousek, has clarified that “bank recapitalization not serve to meet the needs of capital, but to lend to the real economy.” The money that governments give to the banks is not to solve their balance problems but to revive the productive economy. In the European Union and the United States are given less credit. It is a fact. And what is that business and consumer suffer. Why the banks pay less? Bankers say that industrial production has fallen, unemployment has increased and consumption decreased, so it is wise to curb credit. Falls ” Industrial demand and consumption, and encourages not give credits or grant credits leads to a drop in demand and consumption? The bank provides less money than a year ago.

Perhaps, as critics and heterodox, kept under the camouflage of banking prudence liquidity achieved with government support to address future maturities of debt? Remember the beginning of the crisis in the U.S., where mortgage banks give loans to anyone. Prudence was conspicuous by its absence. And also occurred across the Atlantic, which allows us to conclude with a Spanish professor Juan Torres economy that “greed of the bankers was to place all potential claims.”