The chain of events they discussed was this:
- The mortgage and financial institutions are not lending or providing credit as freely as previously because they overextended themselves to people who couldn't really afford the loans they were getting.
- People who used to go into credit card debt and/or take out easy home equity loans to support their overspending now cannot get credit or home equity loans, and so...
- People will potentially buy fewer goods and services
- The companies which provide these goods and services will have to lay off employees to cut costs because they won't have as much business
- The suppliers to the stores will have to make less inventory, and so will have to lay off employees as well.
So a "Yarn Diet" now could deprive me of future yarn because it could collapse the Yarn Economy! Excuse me, while I run off to the yarn shop to save the world!!!