Quote Originally Posted by Smith View Post
If somebody could give me a logical reason why individuals, governments, and companies are all broke at the same time. I would really love to hear it.
banks lend less due to shrinkage of balance sheets -> banks lend less to businesses -> businesses go bust -> people get laid off -> people and businesses pay less tax -> the government's tax income declines -> public sector workers get laid off -> everyone pumps less money into businesses -> businesses search for loans -> banks lend less due to shrinkage of balance sheets