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But the worry is that a prolonged credit crunch could make microfinance clients start to look more like those hapless subprime borrowers.
"If collectively the U.S. industry has made a profit — albeit negligible — and we continue to see high prices for oil and a prolonged credit crunch, then I can't see the point in waiting.
Although the OECD thinks it will then grow by 1.6% in 2010, helped by aggressive loosening in monetary policy, it gives warning that the recovery may be imperilled in a prolonged credit crunch.
But it will do little to protect the economy from a prolonged credit squeeze.Symptomatic of Germany's reluctance to peer into the state of its banks is its steadfast refusal to force them to conduct stress tests against published criteria.
The weak growth signaled that the effects of a prolonged credit crunch in the Chinese real estate sector, and of flagging demand from important export markets like Europe and the United States, was more severe than first thought.
And last autumn, when capital-market liquidity dried up, America's banks took up some of the slack.In contrast, Japan, more heavily dependent on bank lending and with poorly developed corporate-debt markets, has suffered a prolonged credit crunch.
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"And this general gloom will prolong the credit crisis, which means it's harder to get student loans, auto loans and basically any type of borrowing".
Moreover, contraction of equity withdrawal, falling new construction and the prospect that rising mortgage defaults could prolong the credit crisis may dampen further GDP growth.
Credit prolongs the capital settlement cycle, which provides a solution to the problem of capital shortage for reaching a trading contract.
Osborne said public-sector workers, who have already faced a prolonged wage squeeze since the credit crisis, would see their pay rises capped at 1% for another four years.
Like Nassau, other localities across New York and elsewhere have suffered credit downgrades, as prolonged economic weakness has revealed deep structural problems, including unsustainable fiscal practices and looming pension obligations.
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