In turn, the credit market has tightened demand for mortgages and CDOs have plunged as buyers have had a harder time getting credit.
In his statement, the first minister said: "Since public sector budgets are likely to continue to tighten, and demand pressures grow, there is a clear need to examine how services can be sustained and standards of performance raised, so that people in Wales can continue to receive and influence the public services they need and value.
As lending standards tighten, consumer demand could suffer, possibly prompting a recession in the United States.
There are two main reasons why the NHS is going to find it difficult to cope with belt-tightening: demand for services will continue to rise in line with our expectations and an ageing population; and it has got used to significant year-on-year real term increases.
As a labor market tightens, demand for competent low-skilled workers often exceeds supply.
Risk-weighted assets — the denominator in the Tier 1 ratio — are also rising as regulators tighten their demands.
Despite a fall in gasoline demand in the United States and Europe, global oil markets are tightening because demand for energy from Asian countries, particularly China and India, is rising at surprisingly strong rates even as output is declining from several important producing countries.
That changed more recently as strong economic growth in the less developed economies has accelerated demand growth for commodities, tightening supply-demand and causing the prices of many commodities to rise by 300%-400 300%-400%
The collapse in construction as orders for taxpayer-funded schools and public projects have dried up, and which has been a key cause of the latest downturn in GDP, is just one example of the coalition's fiscal tightening leeching demand out of the economy.
Revenues have dropped as a result of the successive waves of belt-tightening demanded by the EU and IMF in return for rescue loans.
