[Iris7]

Existing firms fixed costs are too high to increase production, since the increased production would have to be sold at lower prices. Firms always increase production until they are unprofitable at the margin.

[garbanzo]

Well yes...the problem is that credit is a cheap as it can be but it hasn't seemed to increase demand for credit in large part for the reasons you cite. The typical reason for such inflexible demand is oversupply and you either have to reach deep into foreign markets to use up that capacity or you have to allow for serious contraction (which is what I think Moonman was getting at though in different terms). If the oversupply problem is itself global then your options become politically limited.