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Reasons for downfall of share market?

Updated: 9/14/2023
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15y ago

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The recent Stock Market decline is attributed almost totally to the credit crisis. If lending in this country were to stop (of which now there is a high risk), business activity would completely halt, people would lose their jobs, businesses would close etc etc. This possibility of a massive meltdown (maybe freezeup is a better term) makes a lot of investors very nervous. We are also experiencing, due to the credit crisis, a decrease in business activity as a whole. Unemployment has risen because the high cost of money has led to a decrease in consumer activity. The reasons go on and on but most of them can be traced back to the credit situation.

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