View Single Post
Old 12-18-2008, 02:06 PM
Jason Jason is offline
Join Date: Jul 2008
Posts: 64

When there is credit contraction many businesses suffer, as they cannot finance their day-to-day operations. When a business suffer it looks to cut expenses and the easiest way to do that is to let people go. When unemployment goes up, people lose confidence in the system and the economy and cut their spending, which further affects negatively already suffering businesses. It's a vicious circle, and the sooner credit markets start functioning smoothly, the better for all of us.
Reply With Quote