I certainly won't argue that but that can be a chicken or the egg scenario. Meaning which came first, a strong economy or all-time highs in the stock market. Looking back, it does seem that crashes in the market ultimately have an overall negative effect on the economy. Since the market acts as a barometer for economic health it definitely pays to study the cause and effect. To be less vague, I pose the question "if" the stock market crashed 20% would the economy still be stronger than ever. Since human psychology is a strong factor and losses can be devastating, it is worth noting that recessions do occur after market crashes. Ultimately the boom and bust cycle is somewhat predictable and it is very possible that we will be going through a de-leveraging. Think of it like this: for 8 years you run up your credit card and max it out, then for 2 years you tighten your belt, cut spending and pay off the bill. We might be entering the "pay the bill" phase of things but I do agree at present the economy is very healthy on paper.