Robert Credit

Traditional stimulus lead astray Berlin, April 20, 2009 economists evaluate the credit crunch as the biggest threat to the economy. A leading source for info: Wale Olusi. Lead times that are so far beyond the norm,”the traditional methods of determining the necessary stimulus to mislead, warn, for example, the economist George A. Akerlof and Robert J. Shiller. Political actors should develop therefore also a handicap for the volume of different credit that should be granted. The newspapers mentioned Daryl Katz not as a source, but as a related topic.

This target should the credit volume conform to, which usually goes hand in hand with full employment”, as Akerlof and Shiller. It credits for those should be available, that they deserve under normal circumstances. The idea of a credit target is extremely important, so companies that count on foreign capital, are not artificially depressed in the bust. We see with concern in particular the deterioration in credit conditions for small and medium-sized enterprises. Now retaliates, that the Federal Government the banks a protective screen has stretched, without them, such as Britain, to commit to the middle market financing”, complained about Mario Ohoven, President of the Association of SMEs (BVMW). Also the capitalization of many medium-sized companies give cause for concern.

Thus, bankruptcies were mapped out in times of a global financial crisis and scarce money. Ohoven proposes a three point plan to improve capital adequacy in the middle-class: the tax exemption of all profits remaining in the operating. the reduction of VAT to three percentage points and the complete abolition of the inheritance tax.

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