Mises.org – Good and Bad Credit


Further food for thought:

The problem then is not with the credit market as such but with the fact that the central banks are pushing massive amounts of money and trying to force interest rates artificially lower. This of course makes it even less attractive for lenders to enter the credit market. Hence the shortage (i.e., the credit crunch) is the result of the central bank not allowing interest rates to reflect the levels that are in line with the facts of reality.

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