In that case, shouldn't recessions instantly resolve themselves? When the price in stocks goes down significantly there's pretty much a guarantee that it'll come back up eventually, so wouldn't any prudent investor buy the dip?
As the parent comment said, the only explanation that really adds up would be that the amount of "available money" in the economy must be going down as a result of defaults on credit.
As the parent comment said, the only explanation that really adds up would be that the amount of "available money" in the economy must be going down as a result of defaults on credit.