The Credit and Loan Market may surprise most of our readers as they have never heard of it.
A priori, they therefore think that banks are the only intermediaries between lenders and borrowers.
This was true before “the new freedoms” but it is no longer true today:
- Banks like to lend to households for land and real estate acquisitions for two reasons: they benefit from the mortgage guarantee and central banks refinance these loans with their eyes closed.
- They only like to lend to large companies that are under the control of “their” boards of directors.
- They lend more and more money to “their” specialized subsidiaries whose purpose is to rid them of all the administration of credits and loans, most of the time in long-term rental (with or without option of redemption) and in consumer loans at rates higher than the rates allowed by the central banks.
- SMEs in the primary and secondary sectors are therefore “admitted” for financing operations of premises and equipment.
- On the other hand, banks generally refuse loans to business start-ups and companies in the tertiary sector whose “expenses” concern “expenses” in wages (brain juice) and organization (few machines).
Clearly, European bankers are doing less and less “their job” of financing the real economy, and therefore European GDPs are much less favourable than American GDPs.
The eurozone even manages to destroy national wealth: it is doomed.