Could a falling stock market create its own recession?

One concern is that investor pessimism, as expressed in lower stock prices and rising corporate bond yields, could exert pressure on consumer and business confidence and ultimately reduce spending in the real economy—a linkage that is potentially more potent when asset prices have been rising for almost a decade since the end of the financial crisis.
The economy is not the stock market, but it can be influenced heavily …

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s