The collapse of stock markets-does he mean anything?

Vox explains how the Black Monday will affect the lives of ordinary people

The Financial Times estimated that over a few days of the collapse of exchange indices, the world shares market lost five trillion dollars. This amount exceeds the GDP of Japan, but does this mean that it will become worse for not only investors, but also ordinary people who are far from investments in the action? VOX explains - the collapse on the stock sites is not a reason, but a consequence of decline in the economy. And even that is far from always.

The VOX note is devoted exclusively to the American market, but it is also relevant for other countries where there are exchanges.

American markets spend their worst month in more than five years. The most important question that is worth asking for an average person is this: what is the current exchange crisis more similar to 2008 or 1987? If the first, you should be afraid for the situation in the economy. If on the second, do not worry too much.

During the 2008 crisis, not so large number of Americans lost their jobs due to exchange collapse. Perhaps someone-for example, workers-and lost his earnings due to falling prices for raw materials, but in general, cheap oil and metals are beneficial to an average American, and not vice versa.

A sharp increase in unemployment and the collapse of GDP in 2008-2009 really was, but it is hardly worth blaming the stock market in this. On the contrary, the financiers, lowering the quotes, as if warned the rest that the situation in the economy is becoming much worse, and the profit of companies will be much less in the near future. They were right: the bursting bubble in the real estate market immediately influenced the welfare of ordinary Americans, because it was the middle class in the United States that actively took loans for the purchase of houses.

A similar collapse of quotes occurred during the 1987 exchange crisis. Only after him did not follow a recession or at least any noticeable economic crisis. Perhaps he was prevented by the new head of the Federal Reserve System by Alan Greenpensen, and perhaps it would not have been in any case. Markets are sometimes mistaken.

Does the collapse of American markets in 2015 indicate that a new recession is waiting for America soon? This is still unknown, but there are many arguments in favor of the fact that everything will be fine.

There is no reason to say that cheaper shares will lead to something bad for a large number of ordinary people. [...] rich people own promotions for the most part, and the middle class does not borrow to buy securities (English Yaz.).

Vox