When people decide not to spend or invest, liquidity dries up. People who could do either decide not to. They prefer to keep their wealth in some other form. There are always plenty of people who would spend if they could, but they don’t have any money.
All the people who wanted to sell their stock yesterday found buyers who were happy to buy — at a lower price. Houses around the country are sitting waiting for buyers who will be happy to buy at a lower price. I think there are going to be a lot of houses sitting waiting for buyers.
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