Over the long-term, it creates a significant drag on economic growth. Over the short-term, it can create real problems in terms of disruptions to economic activity. Back to the aerialists. You can imagine with all those bar swinging around and in response to one another, that that could have feedback effects to the wire, the economy, causing more movement in the wire, causing further movements in the market. In the real world, price-driven volatility in the stock market explodes.
Stock prices begin fluctuating wildly.
This creates uncertainty in the minds of the people that populate the economy. It creates uncertainty in the minds of consumers. If enough people do this, it results in a decline, a significant decline, in consumer purchases of durable goods. And that's just what we found in 1930. What I think you have happening in Asia is a lot of people standing around waiting.