Pessimism spreading across developed economies isn't just a temporary mood swing—it's starting to lock in like a feedback loop. When negative sentiment hardens, it warps how businesses and investors behave, which then feeds back into the economy itself.
Here's the kicker: entrenched economic gloom tends to work in three distinct ways. First, it saps consumer confidence, which means spending dries up—that's growth starved of fuel. Second, companies tighten their belts, holding back on capital investments and hiring, which compounds the slowdown. Third, financial markets react to the uncertainty