Saturday, April 21, 2012

The banks created the financial crisis so the banks should take the first step

We are in a financial crisis because of the overwhelming debt. In the past four years the banks borrowed money and lent money even to people they knew they weren’t able to repay it.

At its beginning, back in 2008, the crisis was mostly financial. In the following years the Financial crisis turned into Economic Crisis. The immediate effect was the Credit Crunch. Banks today do not finance businesses anymore, they invest in Treasury Bonds.

The economic crisis curtailed consumer spending and as a direct consequence also businesses and jobs. Without business there’s no economy and in such a scenario, I wish I would offer a solution to save businesses and the right to work.

The solution is very easy: we need banks to declare a 5 year moratorium on Mortgage interest rates for families and businesses on a loan.
The immediate effect would be a breath of fresh air that will be able to restart consumer spending.

The economy is supposed to serve society.
Not the opposite.

Luigi Foscale

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