They are not spending as much, not buying luxury goods or moving house. It will dampen everything. As soon as you see the market going down, there is less enthusiasm for investment. There is not less money - just less people investing in new businesses, which are vital to our economy. Other factors, such as the price of oil, will ultimately determine the severity of any recession and Mr Urqhuart Stewart believes that the current slump is no cause for immediate panic.
Markets always overdo enthusiasm and now they are overdoing the gloom.
There are many different shades and varieties to choose from. That has been part of the problem. As the world's stock markets prepare for the Christmas break, traders will be wondering how much further prices can fall.