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Tue 02 Feb 2009Problems in real economy dwarf those of bank sector
ANALYSIS:OVER THE last few months, our policymakers’ attention has been focused on debt and recapitalisation of the banking sector. Meanwhile, the other elephant in the room waits to be noticed. Hundreds of thousands of households face (at best) static mortgage and consumer credit repayments, against emerging negative equity and falls in real after-tax incomes. Tens of thousands of enterprises feel the weight of unsustainable debt.
The absence of a policy response regarding non-financial institutions is a serious impediment to current and future economic growth and a potential source for social instability.
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