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Will The Economy Crash In 2019?

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Note: Dont expect the economy to crash in 2019, but be prepared for a possible recession.Plenty of people are asking about the
 Don’t expect the economy to crash in 2019, but be prepared for a possible recession.

Plenty of people are asking about the chance of a crash, which I interpret as a pretty severe recession, like 2008-09. The primary trigger of a full-blown crash would be a financial crisis, when many companies, consumers and other entities have borrowed short to fund long-term assets which start looking dodgy. I don’t think that’s in the cards.

The stock market has risen for the last three years, sparking some worries. Most of the time, stock prices are a response to changes in the economy, though occasionally stock prices can influence the overall economy. The market is not so overblown now that it will drag an other-wise healthy economy into a crash, though it would certainly fall if some other cause triggered a recession.

As for housing, but we are not at all overbuilding relative to underlying needs driven by population growth and obsolescence of older properties. A recession could push prices down in the regions that are hardest hit, but a housing collapse will not be an independent cause of recession.

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