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A theory is appropriate as long as it fits into the fact; when a theory doesn't fit in the fact, it's wise to walk with the fact.

Sunday, January 15, 2012

Result of lethargic central banking?

A news by the Daily Star on SME credit tells that during January-September 2011, two-thirds of the loans given to SME sector are used in trading! By definition, SME credit is meant for production.

Here is the news link.

Basic questions:
1. What's the role of the central bank and what it has been doing?
2. Do we remember the result (stock market crash) of having another period of lethargic central banking back in 2009 and 2010?

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