The problem is too big to fix. Record stimuli, FED's 0% interest have not stopped the downward spiral. Why?
Banks have been lending to the wrong borrower for decades. Since 1980s loans to the businesses have contracted, and loans to the consumer has expanded. Business loans are used to create value. They contribute more to the real economy. The likelyhood that they will be paid back is higher. But consumer loans do not provide value. Consumers consume. They do not produce. Today, banks are ...
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August 30th, 2010



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