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with the economy going downhill, a lot of huge businesses are downsizing. take Circuit City for example. have you sen what’s happening with them. may want to check it out; might explain things a bit. got to nbc12.com and search for the story. anyway, the stock market is crashing, slowly, but still crashing. therefore, money is coming up short everywhere. people are going into panic, because they think it’s going to be a depression. that’s the only way I know to explain it. but check out the story; it might answer some other ?’s you have about the economy.
ok, employment = money. if people DON’T have the employment, to have disposable income, then they will not spend money.
so with the ‘credit crunch’ people arn’t lending out money because they ‘think’ they won’t get it back, which means, those who need to ‘borrow’ money ‘wont’ be able to.
in other words, one equels the other. you can’t lend without assurance, and you can’t borrow without ‘confidence’ so it’s a bit of a ‘no win’
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