Economic Crisis
I was thinking about the whole economic problem that we are facing today. And I am seeing all the governments around the world coming up with various rescue plans. But the economy continues to slow down along with global world trade. Therefore, the question that should come to our mind is whether all the rescue plans are effective or not.
Personally, I think the real problem is actually the credit market. The problem lies with the bankers. I mean, if you think about it, is it true that the consumers and the corporate do not want to borrow money? I think it is the banks that do not want to lend money to people. As a result, we are still trapped in this credit crisis.
Yes I know that the governments have been injecting money into those banks, especially in Europe and the United States. If the banks have gotten all the soft loans from the government, why are they not using that money to give out loans to their customers? Instead, they chose to use the money to give themselves fat bonuses.
So, the problem is the banks. And the governments need to focus on those banks. Although I prefer free market, I also believe that since the governments give those soft loans, they should be able to dictate what banks should do. And what banks should do is to give out loans. But then again, care should be taken when giving out loans to ensure sub-prime-crisis-part-two from happening.
I have some comments on Perak thingy, but I will save it for the next post.
Personally, I think the real problem is actually the credit market. The problem lies with the bankers. I mean, if you think about it, is it true that the consumers and the corporate do not want to borrow money? I think it is the banks that do not want to lend money to people. As a result, we are still trapped in this credit crisis.
Yes I know that the governments have been injecting money into those banks, especially in Europe and the United States. If the banks have gotten all the soft loans from the government, why are they not using that money to give out loans to their customers? Instead, they chose to use the money to give themselves fat bonuses.
So, the problem is the banks. And the governments need to focus on those banks. Although I prefer free market, I also believe that since the governments give those soft loans, they should be able to dictate what banks should do. And what banks should do is to give out loans. But then again, care should be taken when giving out loans to ensure sub-prime-crisis-part-two from happening.
I have some comments on Perak thingy, but I will save it for the next post.
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