Euro Crisis, China’s Inflation Tighten Credit, Threaten Growth


Businesses Scramble as Credit Tightens in Europe – NYTimes.com.

Banks in general, but particularly European and Chinese have been warned by their governments to reduce leverage and increase their liquidity; in Europe to withstand loses from debt re-structuring and in China to reduce the money supply and tame inflation, Therefore there is less money available. It is mathematical.

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