> selling stocks puts downward pressure on price and also p/e ratio…selling bonds increase yields
These are financial effects. It takes extra steps to get to a real effect, unlike spending. (Financial effects are monetarily mediated, which means the Fed can do things.)
> lower growth for a good period of time
Agreed. That’s different from “a prolonged slump” [1][2].
These are financial effects. It takes extra steps to get to a real effect, unlike spending. (Financial effects are monetarily mediated, which means the Fed can do things.)
> lower growth for a good period of time
Agreed. That’s different from “a prolonged slump” [1][2].
[1] https://news.ycombinator.com/item?id=35512928
[2] https://www.investopedia.com/terms/s/slump.asp