'Jenga Tower' US Economy Teeters as Middle Class Pulls Back Spending

27 pointsposted 7 hours ago
by mousacre
(bloomberg.com)

3 Comments

jebarker

3 hours ago

> A downturn in the stock market “would knock the wind out of these high income households…”

What are the drivers of this? Does it imply that the income of these households is mostly from stock market returns or that they would tighten belts because of perceived future financial insecurity? Or is it is because they’re largely business owners and a stock market contraction would correlate with reduced profits?