HEATHER

Yes, it is a recession. We have had like 10 recessions since World War II. Nothing to get freaked out about. It is not a depression.

  chech1965

We’ve had a number of recessions since WW2. Almost all of them (with the exception of one that I can recall) was preceded by a rise in energy prices.

Added to that, the US is spending a million dollars a minute as we speak – most of that going into the war. A country can only keep up that pace for so long before things start to fall apart. Higher energy costs are not driving up costs of transportation, which drives up the prices of what is being transported. Workers need more money to drive and heat their homes etc etc. Stocks are a indicator of an investors confidence in an economy. If they see the writing on the wall, they sell and get out…which causes the market to fall.

In many cases, the market will then correct itself because after falling, prices for stocks are attractive again, so others buy in. AFAIK, there is safeguards in place to keep the markets from crashing like it did in ’29. The computers will halt trading before anything drastic happens.