This post “Will MOASS cause the crash or will the crash ignite MOASS” first appeared on Reddit on 27 July 2021 posted by user u/diamondsR4lever.
Will MOASS cause the crash or will the crash ignite MOASS? These are monthly inflation numbers for the past 20 years. The last time it was 5% for three months in a row was summer of 2008 leading into the September crash.
It notices a correlation between the official US inflation figures and the most recent stock market crash of 2008.
On September 29 2008 the stock market crashed, The 2008 stock market crash took place on Sept. 29, 2008, when the Dow Jones Industrial Average fell 777.68 percent. This was the largest single-day loss in the Dow Jones long history, and came on the heels of the US Congress’ rejection of the bank bailout bill.
In the run up to the crash, the inflation rate for the previous 3 months was over 5%. The user points out that the US inflation rate in May and June 2021 was also over 5.0 for each month, and there is no reason to suggest that the July figures will be lower (as everything is pointing towards runaway inflation, what with unprecedented government spending bills, bailouts, stimulus checks etc).
The question of will MOASS cause the crash is therefore quite pertinent, but it should be pointed out that this information simply has one prior set of data, so it’s quite tough to figure out if there is a direct correlation, or whether indeed the crash will be triggered at all, and if so, whether that will be as a result of MOASS…. or indeed whether a crash would actually be the spark that ignites MOASS.
Apes Army Edit:
It’s worth pointing out that the stock market crash of 1987 (also known as Black Monday) came at a time when inflation rates were quite low in the United States, and in 1980, with MASSIVE inflation over 10% on average for the year, there was no discernible ‘Stock market crash’ event that was seen in the USA, although the end of the 1970’s was pretty spicy for everyone.
So, whilst we are open to all possibilities, there is no evidence to suggest that the current inflation rate will be the thing that triggers MOASS, or vice-versa. Just our little addition, which is in no way financial advice.