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Today's businesses rely, directly or indirectly, on consumer spending power. If its decline hasn't been correctly worked into the present-value-of-future-divide
by jjoonathan 8y ago
Today's businesses rely, directly or indirectly, on consumer spending power. If its decline hasn't been correctly worked into the present-value-of-future-dividends (aka price) and the market corrects, the magnitude would have no difficulty rivaling or exceeding previous recessions.
- lotsofpulp 8y agoAs long as the people getting richer keep consuming enough to offset the reduced consumption of those getting poorer, it could work out. We just have to ignore the part where 20% of the population enjoys life while 80% go through the grind to provide for the 20%.