The Economic Crisis

The economic crisis caused pain and suffering to billions of people. But now, at this unbeatable neoliberal capitalist world, which should not be rules or controls that most sacred abridging the freedom of enterprise, suddenly claims involving the state. And in the United States government and Federal Reserve come to the rescue of two mortgage finance powerful entities, Fannie Mae and Freddie Mac before the Government had nationalized IndyMac Bancorp, another large mortgage bank. Reason given: lack of liquidity. In Spain, which happens to be one tenth or eleventh world economic power, conservative parties (fervent believers in the neo-liberal capitalism, under which the State has never intervene in economics), have claimed that the government revive the banking public!, because the lack of liquidity of private banks is worrying and the public banks would end the annoying problem that banks do not have actual, physical money that businesses and consumers require and request loans. In Spain, banks have refused in recent weeks half the required credits to buy cars. The same applies to mortgage loans, whose concession has dropped considerably.

According to a survey of the Spanish Confederation of Young Entrepreneurs Association, nearly 73% of respondents say young entrepreneurs have been denied a bank credit in recent months. They are neo-liberal yes, but while I have no problem when they do, are more interventionist than Lenin. With everyone’s money, of course, which is the state. Why refuse more credit if the delinquency was not worrying Spanish? “Banks have no money,” confessed a senior banking official at Deutsche Bank. Do not have enough real money, because most banks do not have the physical money that the law requires them to have in reserve. As reported by the economics professor Juan Torres of the University of Malaga, Banks have committed to invest their resources (money that customers, businesses and entities have deposited) “very risky investment, but very profitable for them, but very dangerous to their solvency and to the general course of the economy.” And on the crisis, Torres said that “they knew, but have been fooling people, because, while everything was happening and triggered the crisis, banks, multinationals, politicians and monetary authorities have allowed, they were lining.

They are the direct cause, officials uncertain of what happens. ” In short, banks with the complicity necessary of the monetary authorities (who at best looked the other way) and the culpable failure of governments, have devoted much of its resources to volatile financial products, dark and dangerous to the crisis (which they have created) has revealed that lack sufficient liquidity. Then turn off the debts and the real economy that creates wealth, suffers, it stops, backs. Increases the default, templates are cut, closed businesses, rising unemployment, decreases or disappears savings, prices are out of control, millions of people are struggling and hardships, daily life becomes very difficult for billions of people, increases hunger, declines in life expectancy in poor countries … As a shattered economy. Banks and their accomplices requirements (national governments and monetary authorities and international) are guilty. We need to, just as has been achieved in the world a relentless moral and social rejection of human trafficking and terrorism must ensure that banks and banking activities described, especially their perpetrators and their accomplices or accessories, suffer the same rejection of morality, social contempt. It is time to condemn any such indecent financial world and what it does, and demand that they be restrained and control.

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