If the stock market crashes what happens to the economy then?
(Years ago I took Economics in college and one of the trends was that the economy was never stable always up and down. That seems to be with the stock market? If it would come crashing down would the economy be as bad as it was during the Great Depression?)
Answer :
It was the bank failures that was caused by the crash not the crash itself that contributed to the Depression, We had the biggest one day crash ever in 1987 and it was only a blip for the economy because the stocks were not bought with borrowed money so it only effected the people in the market.
Posted: July 29th, 2010 under US Stock Market.
Tags: stock market crashes