The main problem with this if it happens is people tend to stop buying things like Cars, homes, building materials etc. So, this has a trickle down effect if the market doesn't recover within a month or two worldwide. When things are not purchased people start to lose jobs in manufacturing and in service jobs worldwide. So, the sooner the stock market can recover the better for people who have jobs worldwide. Because most bigger purchases are made by people who are invested in the Stock market and this drives most economies by these bigger purchases and keeps people employed worldwide.
These bigger purchases are financed by Dividends and Interest usually as wealthier people don't touch their principle in investments very much because of Capital Gains tax and other reasons during downturn. So, when the value of investments drops and stays down more than a month or two so do purchases worldwide. So, this could send a ripple effect worldwide if investments don't recover within a month or two especially in the U.S. and Europe.
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