Exact(6)
If the farmhand had eaten the wheat his boss scattered on stony ground, he would be better fed but next year's harvest would be no bigger.China's high investment has been financed with plentiful credit.
At the bottom of this caste system, as before, are the shareholders, who get any leftovers.In the years of easy, plentiful credit, companies were able to demand looser conditions on their loans.
Heavy industry has benefited from a seemingly bottomless pit of inexpensive labor; low-cost and plentiful credit supplied by state-owned banks; inexpensive land provided by the local authorities, who are eager to generate jobs and taxes; cheap utility tariffs; and, last but not least in Washington's eyes, an undervalued exchange rate.
–Buying sprees are fueled by plentiful credit supply.
Despite all this, thanks to the abundant dollar inflows, plentiful credit still sloshes round the economy that is not only being used for investment in plant and machinery but also finding its way into the hands of share and property speculators.
Having easy access to cheap and plentiful credit is becoming a universal problem for families, students and small businesses all across Illinois and America.
Similar(54)
Jobs were as plentiful as credit.
"Credit was so cheap and plentiful until the credit crunch that people were lured into taking more loans, maxing out their credit cards and taking out higher mortgages than they should," he says.
"The economy and tax revenues have been propelled by a cheap and plentiful flow of credit, which is now drying up rapidly.
So far, at least, rising real-estate prices and plentiful supplies of credit have helped to offset losses in the stock market, and there has been little evidence of panic.
The destruction of more than $13 trillion of consumer wealth and the implosion of the shadow banking system, a once plentiful source of credit, has triggered a shift to thrift, which in turn has plunged the economy into its deepest recession in decades.
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Justyna Jupowicz-Kozak
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