farmer4321 - 12/22/2018 13:58

When the more wealthy people are feeling wealthy and good about themselves, they spend money, the new car, the new boat, the second home, the third home. When they start feeling nervous, they don't. Just look at what happened when trump cut them a big tax cut last year, a significant portion of the increase in Chinese imports and the increase in the trade deficit was traced to that increased spending.
What's going to happen now is, wealthy people aren't going to buy that new car, the second new car, the second home, etc, etc, etc, and it will show up in decreased economic activity.
That's why it's just getting started. It's not the fact that stocks are going down in value but that people won't have as much money to spend.
And the same thing will hit tax revenues, government debt and government borrowing soon enough.