Why do people say the stock market is going to crash?

Why do people say the stock market is going to crash?

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they've spent years waiting for it to happen so that they can finally be vindicated

would it be as bad as 08?

Worse. Jerome is literally finna be carted off to the gallows this week

>Jerome is literally finna be carted off to the gallows this week
you say that like it's a bad thing

Because if you look at the S&P 500 over the course of a year, it has had a huge downward spiral.
In fact, because of the COVID-19 outbreak (Hoax or not I'll let you decide that part), the whole world is being laid off and in the US alone unemployment has reached a staggering 20%.
That may not sound like a lot but for context, during the great depression, unemployment was 24.9%. Which is only a 4% difference.

With no one working, and banks starting to hand out juicy high interest loans to people who are desperate to keep their heads above water, the world (at least in the USA) is getting ready to enter a new depression. Especially because the stock market is driven by data and market psychology. When every companies income reports come in, they will be at record lows which will scare many investors into a selling mood. Devaluing the stock.

Needless to say, all this can be avoided, if A) investors hold and don't freak out (hard to due if you're out of money and need to burn some stocks) (Also hard if everyone else is selling while your price keeps dropping) B) Companies keep their workforce and keep paying their workers.

Somethings that will make the situation worst is
A) Devaluing US currency (Trumpbux for everyone program)
B) Bailing out megacorps that don't want to keep staff (It's still happening)
C) Not having brave leadership willing to place hard dates on economic re-opening (It's been back and forth)

Make of that what you will, but just google my very straightforward explanation and it all matches reality.

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thanks fren

This is also not including the potential of what's known as a "bank run"

This is where every White boomer thinks "dat der bank es finna close!!! I better get me money before dem joooz take it"

The bank is then forced to hand over their clients money, meaning that they no longer have money to lend/invest. This may sound like a hurr durr well they shouldn't have spent me money thing, but essentially a bank stays afloat by using your money to make money and in return, they issue you an IOU and promise to give you your money whenever you ask.

With banks losing their capital, they shut down, people start actually loosing wherever money wasn't taken out of the bank and now we are at Africa levels of economy. Money is worthless and all the white boomers are to blame.

B-but that couldn't happen anymore! we have protection.
If you give people a chance my ugly friend. They will disappoint you. They can make weekly trips to the bank and eventually create a situation where the bank is actually in trouble.
Its happen before and there's a risk of it happening now if nerves continue to worsen.

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No worries, bear in mind, that's only a small crash course in what's happening, so you'll need to continue to research more on your own later if you're interested.

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maybe, but people that KNOW it's going to be worse, again, have spent years hoping for it to happen

Bank runs literally dont happen anymore. The france protesters tried it and the kikes shut it all down and prevented anyone from withdrawing money.

We can hope that there is enough protection in place fren, but what if, someone was to do it in piecemeal, until they close their account.

If you give boomers a chance, they'll always disappoint you.

Just ask yourself, what is the shittiest most self destructive self gratifying thing a self absorbed asshole could do to make the situation worse? They will likely try that.

Let's hope there's enough protection in place in the US, but we can only see.

If France truly stopped it from happening, good on them. If they only delayed it, well what can you do.

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If the bank ever tells me I can’t withdraw my cash, I am logging into Minecraft and coming back with my rifle.

>transfers all my money through paypal
Nothing personal yid

A bank refusing to give you your money and the bank not having any money has the same end result for consumers.

did you all miss the fed action? banks dont need any assets to loan out money anymore it's 0%, zero fucking procent.

Which means money can be further devalued since you can just print more bro.

OH BOY WHO READY TO END IT ALL BOY'Z? WHO READY TO GET FUCKED HARD BY OUR BOOMER WHITE OVERSEERS?

For the nay-sayers who say, heh bro just print more mon mon.

Well money (right now, not before the currency backing swap, research teh gold standard bs) is actually only as valuable as everyone thinks it is.

So we have the baseball card effect. If you have a bunch of manny cards in circulation well manny's worth dick. But if there is 1 Shaq card for some reason in circulation well shit that's a card worth everything.

Same thing with the US Dollar. There more mon mon in circulation the less valuable it is.

Because it's going to?

because they're stupid niggers

I seen a video on macroeconomics that printing money is actually causing medium term deflation coz that debt has to be serviced but it is producing nothing to service the debt.

LOL facts

Because the economy is collapsing. What they don't realize is that the stock market is decoupled from the actual economy.

The whole printing money bad meme is an oversimplification, but you're hitting on the salient point - producing nothing to service the actual debt.

What we do with fractional reserve banking is, hypothetically, multiplying the number of people able to take entrepreneurial action. The idea is that if the bank is able to make 10 loans and 8.5 of them on average yield returns, their interest only needs to cover the 1.5 loans that default, which should allow lower interest rates (and thus risk) for everyone in the economy. The vulnerability of this system that's been exploited is the consolidation of decision-making power. The financial system is robust, but it's a proof-of-stake system, and so is vulnerable to a corrupt few wielding disproportionate power, and abusing that power for personal gain. That corruption contributes rather substantially to what we experience as long-term inflation. (E.g. zoomies knowing they'll never own a home.)

the more important question is when are we getting the extra $2k gibs per month? People are making more on unemployment than I make employed it's gay as fuck

I know right?
t. contractor accepting 24% wages to help keep clients afloat

It's all digital so you still have access to all your funds. You can easily transfer it all to another bank or buyboomer metal/bitcoin

Unemployed master race reporting in. Gonna buy BTC with my double gibs.

Only Gold and Silver are money, everything else is credit.

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this.