Will The Stock Market Crash?
I think those that are in the stock market ask themselves this question at least once or twice daily.
For the average blue collar worker in America, this might not seem quite as important as it is to the more wealthy Americans, but it will have a devastating affect on us all.
The prediction I heard, more than a year ago is that the stock market would in fact, drop, only to rise but this rise would not reach the levels at which it was before the first drop. Sometime, I didn’t read or hear an exact amount of time, it will take a second plunge that will make 1929 look like a walk in the park.
I am inclined to believe that the real estate market has not bottomed yet. Much of our economy is in construction and the like, therefore it has a very major impact on our economy.
Consumers have less to spend, therefore the money generated from retail sales could be better. Unemployment is quite high. The way the government figures it we are around 10%. This looks much nicer than double that figure which it is probably closer to when we take into consideration those that have drawn all of their unemployment or are not counted for other reasons on the unemployed list.
I do believe that government often runs many things less efficiently than most private businesses. This is because the government raises taxes that people must pay and a business needs to make money, or they go out of business.
Large corporations and businesses have been maintaining their profits to some if not a large degree by laying off employees. When we lay people off, we reduce retail sales.
I don’t fully understand how the economy works. I do believe that most of what I read seems to follow the ideas I mentioned above. If the people saying these things are correct, then the stock market could drop. No one is saying how much it will drop.
As I mentioned, the prediction is that basically the bottom will drop out.
The last time we had a depression we had food stamps, rationing, and many things that made our lives very difficult. I can’t help but wonder how much worse it will be with so little being manufactured in this country. We even import much of our food.
My guess is that if the stock market does crash, it will be a very long and painful recovery.
I welcome comments from others, just to get the word out. If the stock market does crash, we really should make some preparations for what might lie ahead.