What You Need to Know About Recessions
| What You Need to Know About Recessions |
| | | From Our Partners 1907, 1929, 1998, 2007 – and Now 2023? The Washington economist who called the Lehman Brothers collapse says the exact same scenario that occurred in four of America's biggest economic calamities is unfolding again today. It all centers around an unregulated sector that could be on the verge of "blowing up" once again. Critical details are posted here. |
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| What You Need to Know About Recessions By Robert Rapier Over the past five years, economists have been talking pretty consistently about recession. In fact, here are a pair of headlines from Bloomberg, exactly one year apart. The first headline makes us feel as though the recession is inevitable, and the second says the economy continues to defy the inevitable. This would be funny if it weren't so serious. The market responds to expectations, and constant expectations of recession have been a drag on the market. That's not the only thing impacting the markets. The rise in interest rates is having a very real impact, particularly on interest rate sensitive sectors. But today I want to discuss recession. What is it? Why does it feel like the economy is weak, if economic indicators are in fact strong? Let's discuss. What is a Recession? A country's gross domestic product (GDP) represents the value of goods and services produced. For the United States, this is estimated to be about $26 trillion this year, compared to was $20.5 trillion in 2018. All economies go through cycles of expansion and contraction. A recession is generally defined as two consecutive quarters of GDP contraction. (A depression represents a deeper and generally more protracted GDP contraction). Read More... |
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