this post was submitted on 11 Oct 2025
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They’re dependent on it indirectly. Like, most of the rest of the economic growth that has gone on in recent years has been from the wealthiest 10% of Americans increasing their consumption of various goods, or continuing consumption even as prices rise while wages stay stagnant.
That 10% has felt comfortable spending money due to the value of their assets growing, being able to liquidate some here and there or using them as collateral for loans.
If they lose a significant portion of 1/3rd of their assets in stock, and no other investments are showing rapid growth, they’ll probably pull back on their spending, which will in turn hurt the rest of the market. That won’t be as quick as the panic around “AI” companies, nor as disastrous.
It will be a slow thing, as companies that have moved towards the high margin premium side of the market see sales dry up on their most profitable products.