Experienced hands who saw the last downturn will have learned to recognise the signs around two years ago. (It’s an Equitable Life, Henry!)
As banks fail, the lending to companies dries up and companies who were on a knife edge drop off the cliff – Woolworths and MFI for example. People lose their jobs, which means they spend less with the butcher, the baker and the candlestick maker. Retail spending goes down, more shops and industries close, and it feeds on itself this way.