Two years after the financial crisis began, Germany is still at risk of a credit crunch as banks face a wave of corporate downgrades, the head of the country’s main banking association has warned.
“Will there be a credit crunch? Clearly it is a concern and there is a real danger of this. I do not think it is entirely unrealistic to think there will be one,” Andreas Schmitz, president of the Federal Association of German Banks, said in an interview.
Is Germany heading for a W crisis: a fall, a small rise and then another fall before there is any hope of a recovery? Sounds like it.
We face the same problem.
And any cutting of government spending now would tip us straight into one. George Osborne take note.