Are We Over Dependent On The Stock Market?

Discussion in 'General Trading Discussion' started by gowiththeflow, Dec 4, 2018.

  1. gowiththeflow

    gowiththeflow Senior Investor

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    When you consider pension funds, company finance, government finance and many other issues revolve around the stock market and money markets, are we over dependent on stock markets?
     
  2. longtermbull

    longtermbull Administrator Staff Member

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    The stockmarket is the key to everything, fund raisings, takeovers, equity finance, etc. When the markets struggle there is a knock on effect to economies - just look back at some of the crashes in the past. Pension funds, company liquidity and much more also depend on the stock market. A perfect point in question, the securitizing of sub-prime mortgage loans back in 2008 which eventually led to the worldwide economic crash.
     
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