Coordination failure

To my understanding, it's what we called bad circulation.

companies cut jobs => workers' income decrease
workers' income decrease => people(workers) spend less
people(workers) spend less => companies sell less
companies sell less => companies cut jobs

The coordination between American consumers and Investors fails as well.
Americans save more in fear of bad economy(which probably is a good thing for the long run =.=), however, investors cannot get the money from banks or just don't want to invest because of the decreasing GDP.
As a result, saving goes up, investment goes down. Coordination failed.

The circulating products in the economics vessel shrink, just like the throughput in the network link shrink. Now everyone's situation gets worse and is unhappy.