[lbo-talk] The stock markets vs the Real Economy

[Wojtek S]

It was argued in "Wall street" by  Doug Henwood, if memory serves.

However, I do not see how a significant stock market downturn  has no
effect on real economy.  It increases liability/asset ratio, which
triggers nasty corporate behavior like cost cutting or using stimulus
to pay off debt instead of increasing production.

Wojtek