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Recommend It's a myth that the slump persists due to the banks' squeeze on credit, so 'fixing' them will not mean escaping the downturn (Email)

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One of the big myths of the current downturn is that the reason the slump persists is that banks are refusing to lend [1]. The story goes that because the banks have taken such big hits to their capital as a result of the collapse of the housing bubble and record default rates, they no longer have the money to lend to small- and mid-sized businesses.


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