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by dragonwriter 2990 days ago
> The news expect a 40% correction in the US stock market soon

“The news” is not an entity with expectations. I'm sure there is some commentator in the news who expects that, but I see less evidence that there is broad consensus on or, more important, any strong support for such an expectation.

> that can make the US dollar close to worthless.

A stock market crash doesn't make dollars worthless. It just means corporate equity rapidly became less valuable in terms of dollars.

Now, in the wake of such an event the Fed might pump trillions of dollars into financial markets as a stimulus measure if Congress didn't do adequate fiscal stimulus and conventional monetary stimulus was inadequate at achieving stimulus goals. While that sounds scary, we have recent evidence that that, too, can be done without making the dollars worthless.