When capital contractions occur, economic contractions also occur, i.e., there is not enough money and/or credit
spent on goods, services and financial assets. These contractions typically occur for two reasons, which are most
commonly known as recessions (which are contractions within a short-term debt cycle) and depressions (which
are contractions within deleveragings). Recessions are typically well understood because they happen often and
most of us have experienced them, whereas depressions and deleveragings are typically poorly understood
because they happen infrequently and are not widely experienced.