To understand how this stock market crash might play out, it’s useful to understand how the previous crashes took shape.
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US inflation rate has risen 8.3% year-over-year. Even removing volatile food and energy prices, the so-called core CPI still rose 6.2%.
During the pandemic, governments around the world pumped truckloads of money into their economies to boost the troubled economies.
If the government has trouble paying its bills, it can be forced to borrow more money or increase the money supply through quantitative easing (QE) or other methods.
If this goes on long enough, it may even lead to an economic crisis—and that’s when you’ll see a stock market crash!