The crisis is now compounded because banks do not pay enough money, but Governments have injected them and injecting billions of euros. The European Commission has accused the banks of prolonging the crisis by not granting appropriations and the Finance Ministers of the European Union have asked formally to lend money to revive the economy. The Minister of Finance of the Czech Republic (country that presides over the Union until July), Miroslav Kalousek, has clarified that the Bank recapitalisation should not serve to meet the needs of capital, but to lend to the real economy. The money that Governments give to banks is not to solve their problems of balance sheets but to revive the productive economy. In the European Union and United States are granted fewer loans.
It is a fact. And it is also resent that enterprises and consumption. Why banks provided less? Bankers say that industrial production has fallen, unemployment has climbed and descended consumption, so it is prudent to curb credit. Cae industry demand and consumption, and motivates credits will not occur, or not grant credits causes the fall of demand and consumption? Banks lend much less money that a year ago. Perhaps, say critics and heterodox, they the liquidity is achieved with government aid to meet future debt maturities saved under the camouflage of banking prudence? Remember the beginning of the crisis in the United States, when banks granted mortgage loans to anyone. Prudence shone by their absence.
And also occurred on the other side of the Atlantic, allowing us to conclude with the Spanish professor of Economics Juan Torres that there was greed of bankers by placing all possible credits. To whoever. The European and U.S. banks built a huge financial bubble that burst liquidity and solvency. In Spain, for example, in six years (until 2008) credit granted by banks and savings banks passed 700 billion euros to almost two billion euros.