The confluence could shock the economy, especially when combined with contracting credit.
So problems in one part of the world can reverberate almost everywhere else -- risking a cascade of default, contagion, contracting credit and collapsing economic activity.
The cost is obvious, while the main benefit avoiding a catastrophic downward cycle of contracting credit and recession is, mercifully, hypothetical, no matter how plausible.
Fears over Spain's sovereign debt, fierce competition for deposits and contracting credit will make life more difficult for the banks this year.
Bob Carter, group vice president for Toyota Motor Sales USA, said the contracting credit market had not prevented large numbers of buyers from getting car loans, but dealerships were still seeing fewer potential customers browsing the lots.
The new Basel III capital-adequacy ratios, the ECB's upcoming asset-quality review and stress tests, and even the European Union's competition rules (which force banks to contract credit if they receive state aid) all imply that banks will have to focus on raising capital at the expense of providing the financing needed for economic growth.
But economic cycles are driven by complex relationships with expanding and contracting credit flows, and the exact entanglements are difficult to discern except in retrospect.
We expect that the negative effects of continued home price declines and contracting credit will lead to a decline in consumer spending and, in turn, a decline in U.S. GDP," Croesus reads in Paulson's second-quarter report to investors.
After the collapse of Lehman Brothers in September 2008, financial markets continued to fall sharply throughout the winter as global output contracted and credit dried up.
Some of this data includes cell phone contract credit history and rental information.
The trader keeps the full $0.30 per contract credit as long as shares fail to rise to $50 in the next five months time.
