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.

Standard & Poor downgrades U.S. debt. Meet the AAA club

http://money.cnn.com/2011/07/29/news/international/countries_with_aaa_rating/index.htm

Damage is done.