Posted by bad_luck on 3/5/2013 1:51:00 PM (view original):
Posted by tecwrg on 3/5/2013 1:40:00 PM (view original):
What part of this did you not understand?:
"At this time, banks were afraid to lend to each other or anyone else, this is what really started the Great Recession on Main Street. Companies use this borrowing to finance their business. For example, Target will take a 30 day loan to pay for its inventories and payroll. Without any way to borrow as usual, the layoffs started."
Here's the sequence of events
1) Banks stopped lending
2) Companies could not get loans to finance their businesses.
(This was the economy crashing)
3) Companies started to layoff employees
blah, blah, blah
Did you somehow miss all this when it was occurring in 2008?
So you're changing your story now?
So the economy crashed before the layoffs? You're somehow separating the layoffs from the cause of the recession? Interesting logical gymnastics over something that doesn't really matter. The disappearing demand and the recession go hand in hand. We aren't fully recovered until the demand is back.
What part of the above post did you not understand?
The slowdown in consumer spending was preceeded by layoffs.
The layoffs were preceeded by the banks no longer lending to businesses (or other banks).
The banks stopping lending was preceeded by a series of cascading financial failures.
Do you not see a link?
And for the eleventy-millionth time: were you comatose in 2008 when all this was happening?