Spot price of West Texas Intermediate in relation to the price of Brent Crude. Historically price differences between Brent and other index crudes have been based on physical differences in crude oil specifications and short-term variations in supply and demand.
When does market failure occur? Whenever resources are not allocated efficiently. ie. total surplus is not maximised. What are the main types of market failure?
A stock market crash doesn't always end in recession. It also serves as a warning sign of a loss of investor confidence. If the Fed can restore confidence, it will avoid the recession. A good example is the stock market crash of 1987, also called Black Monday.