If a prediction of a recession causes the market to crash, can it be said that the prediction itself is part of the cause of the recession? Like a self-fulfilling prophecy?

Question

If a prediction of a recession causes the market to crash, can it be said that the prediction itself is part of the cause of the recession? Like a self-fulfilling prophecy?

In: Economics

Answer 1

It gets even deeper. Most people that respond to a recession prediction are responding to how they think others will view the recession prediction (by selling).

This time it is very unnerving though, especially considering we’re in one of the longest periods of economic stability/growth EVER. Statistically we are way waaaaay overdue for some kind of recession.