They won't happen anymore. Crashes can still happen when valuations run up far beyond fundamentals, though, and correct to the mean.For a few reasons,1) cyclical industries don't dominate the stockmarket. the market is dominated by non cyclical growth industries. That's the biggest reason that corrections don't turn into recessions anymore.2) corporate taxes are 1/3 less than what they were. that gives corporations a lot more room to make errors, and less likely for those errors to be catastrophic since they have a wider margin of safety.3) banks have a smaller role now instead of dominating the market. Banks are on the credit boom bust cycle, and if they dominate, they take the economy with them when they bust. As well, non bank lenders own a 1/3 of all debt now and the risk is more widely distributed. So when something goes wrong, it's not as likely that banks will start blowing up.Just because recessions don't happen anymore doesn't mean the market is going to be a smooth upward compounding curve. There will still be crashes,reversions to the mean, multiple compression, or just stuck in the mud like now.
>>62850324Exact now it is depressions
>>62850324Dont have to do dmg control here for the 3 users, its over!
