Re:Dow Falls 2997 points worst drop since 1987 crash
by seanmcdirmid on Monday March 16, 2020 @05:16PM
(#22597951)
A lot of ventures that were hanging on by threads will be ruined by this, so the pandemic is likely to clear out a lot of the weaker businesses as any good recession or crash is apt to. It will take a while for the marker to grow around that loss (though good in the long term, there is pain in the short). It could also trigger a housing correction, which has ripple effects on the construction industry, and those people are no longer eating at restaurants, and so on. Think of busts being inevitable anyways, and a crisis is merely the way into one.
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Re:Dow Falls 2997 points worst drop since 1987 crash
by jdhn on Monday March 16, 2020 @09:10PM
(#22600369)
>It could also trigger a housing correction
What would a housing correction look like? Demand still outstrip supply in hot markets, so the worst thing that'll happen is that the housing prices will have a slight dip, and that's it. Also, with the Fed lowering interest rates to zero and possibly lower, that'll continue to inflate the value of assets such as houses.
Re:Dow Falls 2997 points worst drop since 1987 crash
by harambae on Monday March 16, 2020 @09:41PM
(#22600601)
If it gets bad enough (and I don't want to seem insensitive here) a bunch of elderly people die and their houses are on the market.
Re:Dow Falls 2997 points worst drop since 1987 crash
by seanmcdirmid on Monday March 16, 2020 @09:44PM
(#22600616)
The same was true up until the 2008 crash. If it happens, it will be a cliff, not a gently sloping down fall.