Recession, or Depression?

Written on August 1, 2009 – 11:51 pm | by Justin Paone |

Here is wikipedia’s short definition of what a depression is:

In economics, a depression is a sustained, long downturn in one or more economies. It is more severe than a recession, which is seen as a normal downturn in the business cycle. Considered a rare and extreme form of recession, a depression is characterized by abnormal increases in unemployment, restriction of credit, shrinking output and investment, numerous bankruptcies, reduced amounts of trade and commerce, as well as highly volatile relative currency value fluctuations, mostly devaluations. Price deflation or hyperinflation are also common elements of a depression.

I think this definition describes a lot of what we’ve seen these past few months.  This recession certainly has been a record breaker in many areas.  It just doesn’t seem like the normal garden variety recession. Watch it be labeled as something closer to a depression when all is said and done.

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  1. 2 Responses to “Recession, or Depression?”

  2. By Renee on Aug 4, 2009 | Reply

    Hey Justin. Yeah, it does seem to have lasted longer and been more intense than the recesions before. I’m interested in how and who will manage to pull things back up. Whoever does would be quite the global hero at this point :) whether a country or individual.
    I really like your posts btw, they always make me think and your blog is one of my favorite stopping places on the web :)
    hugs brother in law,

  3. By Justin on Aug 6, 2009 | Reply

    Thank you. Haven’t been the most faithful to keep up this blog as of late, but I plan/hope to do better.

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Welcome to my blog. My name is Justin Paone and this is where I express my thoughts, discoveries,views and the day-to-day happenings in my life.

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