Just straight to the point, what’s the ripple effect of economic downturn?
Lower bank savings interest rates
Falling housing sales and reduced property values
Companies are downsizing, and filing for bankruptcy
Higher unemployment rate
So who is the most affected group? For sure, people may say poor people most affected. For me, it depends on your current financial situation. People that have NO SAVINGS suffered the most. People that pretend to be rich suffered too. However, middle-income group suffers the most since need to work harder to solve today’s challenges.
Economic downturn only benefits the top few tycoons in the world where they hold on the bulk of the money, to keep it from circulating, forcing companies to close down due to lack of cash flow and debt, which in turn forces stocks and shares price drop. When it drops, these top people will dump their money in and buy more, then wait for the economy to improve, and then sell off for profit.
Rich Get Richer, Poor Get Poorer