If the USA goes into a Bear Market...

MyNameIsCharlie · January 27, 2016, 03:20:58 PM

... How bad do you think it would get?

The Fed announced that the economic recovery ended in Q3 2015. On this announcement tge DOW dropped over 230 points. Stocks, so far, have been the only measurable improvement in the US economy.

So, if it goes Bear, will we repeat 2007? Will it get worse?

More Than Mortal · January 27, 2016, 03:45:30 PM

Falls in asset prices aren't particularly a big deal. The problem is when bear markets are signalling some kind of economy-wide wobble. Unfortunately, other indicators point in the same direction also.

However, a repeat of 2007-08 is unlikely. Banks are stocked on liquidity, and household debt is not as big a problem as it was back then.

MyNameIsCharlie · January 27, 2016, 06:58:06 PM

Quote from: Imperial Apologist on January 27, 2016, 03:45:30 PM

Falls in asset prices aren't particularly a big deal. The problem is when bear markets are signalling some kind of economy-wide wobble. Unfortunately, other indicators point in the same direction also.

However, a repeat of 2007-08 is unlikely. Banks are stocked on liquidity, and household debt is not as big a problem as it was back then.

Sure, there isn't the debt. But there also isn't the income. Unemployment is still really high.

Death · January 27, 2016, 07:02:16 PM

Will it be as bad? No. But we will for sure be taking a heavy hit. Nothing we can't recover from.

More Than Mortal · January 27, 2016, 07:09:10 PM

Quote from: MyNameIsCharlie on January 27, 2016, 06:58:06 PM

Unemployment is still really high.

No it isn't, it's only 20 basis points about the natural rate.

Mattie G Indahouse · January 31, 2016, 03:08:22 PM