Unemployment is an important lagging/confirmation Indicator.
Credit Tightening is traditionally a leading indicator.
Heart Break Tonight …
Somebody’s gonna come undone There’s nothin’ we can do
The bottom line ...
Banks are tightening credit making it harder for companies to borrow money because of the banking crisis. This is causing more people to be unemployed.
The rest of the story ...
The banks are being more careful when giving out loans than in the past, which means it’s harder for people to get loans. This is causing problems for people who are already struggling with money. It’s also bad news for small businesses that need loans to grow and be successful. Some people and businesses are turning to other ways to get money, but these can be very expensive and not very reliable. This is making it harder for people to find work and is making the economic problems worse. Something needs to be done quickly to fix the problem and help the people who are struggling. The people who run the banks and the people who make the laws about money need to work together to find a solution.