It’s a mistake to look at what happened yesterday and say “Whew, that was close”
Historical economic failures don’t happen overnight or in a 24 hour period. It is like a major earthquake. Over a period of time you get increasing small tremors, then boom-all fall down.
In 1929 the market was having pretty erratic jumps and declines but trending upward. However between Sept 3 and October 24 there were declines with smaller recoveries and in that 6–7 weeks there was a loss of 21%. Then on the 24th there was a drop of 9% for the day. There was an attempt to rally but 5 days later a full investor panic set in and Katy-bar-the-door, it was all over.
We are seeing erratic ups and downs this year, too. While govt controls will prevent a recurrece of 1929, we see a transfer of investment fom the stock market and bank instruments to T bills. There will be less available credit with a scaling back of inventory purchases and hiring with the resulting increase in unemployment, more .
This will not be the big crash of 1929 but a longer period where instant gratification will become just a memory. The pain will only go away when the political luddites admit that a big complex country has big complex problems and requires a big complex government