Say you have five staff, and falling revenue. If you retrench one staff member, that is potentially one mortgage default.
However if you decide to say move three of those staff to part time, you could potentially have three mortgages underwater, assuming all your staff are leveraged in their homes and are living week to week after other rising costs.
The other result is you have three households in shock, and that will start to de-leverage quite heavily to make ends meet, resulting in a sharper decline in consumption.
