alt Hacker News> Nominal inequality gets reset.
Why would it? The wealthy people who haven’t allocated their capital to those assets that are depressed from a recession can reallocate to the depressed assets and end up even wealthier on the rebound. People with no money at all don’t have that opportunity to invest.
The stock market is $80T, cash is $20T. The former cannot "weather the storm" in the latter in aggregate, even though I'm sure there are individuals who successfully timed the market.
> At no point in the cycle is it better to be poor than rich, but the contractionary quadrant is the one where the gap shrinks.