Long-term cures must wait

Now,as all know,the biggest emergence difficulty that all businesses are faced is "credit crunch".But the author of timesonline compared this problem such as one kind of the most dangerous illness:cancer.It talks about how can we reduce and..."cure" this credit cancer.
The main reasons why it happened because of borrowing money,reckless and dishonest banking practices and the global imbalance between exuberant consumption and house-price speculation in America, Britain, Spain, Scandinavia and Eastern Europe, on one hand, and excessive saving and austerity, on the other, in China, Germany and Japan.

The most thing I like is in that text is the comparison of this credit crisis with the heart attack.Rather than a heart attack, the global banking collapse could perhaps be described as a bullet in the head, since its proximate cause was a conscious decision by the US Treasury to jeopardise the stability of the world economy in pursuit of an essentially political objective - to show that the Bush Administration was willing to act ruthlessly against at least one big Wall Street investment bank.

So if there's problems,we also need to know about how to solve it???How to "cure" it???They give the most famous popular of this corruption is Lehman Brothers.It said he cure for the post-Lehman collapse is totally different from the prescription for the credit and property boom. Instead of restraining lending, punishing banks and encouraging saving, policymakers have to do the opposite.So what they need to do is They must support - and if necessary - subsidise banks, to create conditions for easier lending and borrowing terms and to do their utmost to encourage consumption.

Or there's the way more to cure,decrease and escape from that credit cancer is o slash interest rates and taxes, especially taxes on consumption and on lower income households, who are most likely to spend rather than save any extra money that they are allowed by governments to keep. They must also be willing to let their exchange rates float without worrying about inflation.
So if we will do that policies,the author gave us the strengths and the final advantage of that such as If governments around the world are willing to pull out all the expansionary stops - and especially if they do this with some degree of co-ordination - then the risk of a prolonged global slump will be much smaller than generally believed. So the final thing that we get after right policies is with interest rates near zero and big tax cuts made across the world, a robust recovery would probably begin by the middle of next year, starting in America and China, spreading to Britain and eventually reaching continental Europe in 2010.

And the final phrase that is really usefula and which is written by the author was:"There is no point in offering chemotherapy to a patient whose heart has stopped. "Which means we must help to businesses before thay collpased or closed....If not,our help will be useless and goes by the wrong way!

GOOD NIGHT EVERYONE!