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At the end of a piece on the Today programme this morning, examining whether banks are lending to small businesses, as they claim they are, or are not, as some of their customers claim, Evan Davis offers a range of possible explanations...

One final explanation for them not lending could be that they're stupid. One can't entirely discount the possibility and yet in economics it generally pays to assume people are sensible until you have evidence otherwise.

Is that the wrong way around?

Category: Credit+Crunch
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