Recession, or Depression?

Saturday, August 1st, 2009

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.

The Fog of Recession

Friday, May 8th, 2009

I think it’s interesting how different the same landscape can appear through a different set of eyes. So far with this recession I’ve read predictions from financial prophets of both doom and prosperity, each professional weighing in with their personal thoughts and predictions of the future. Maybe the differences in views has to do with what you choose to focus on. One annalist will say things are getting better and we’re on the road to recovery, the other sees major obstacles in our way and is more critical about what is being done. Both have their reasoning and the data that supports their thinking. I feel it’s good to be optimistic in life, at the same time, I think wisdom in this situation is also equally as important. Wisdom, I feel, would examine both sides of the coin and prepare for things to not go as imagined or planned. Right now it seems that some of the recession storm clouds may be breaking up, which is certainly welcome, but we don’t really know what turns exist in the road ahead. I guess the best thing to do is hope for the best, but at the same time be as realistic as possible. The last thing people need is false sense of hope that leaves them unprepared and in a worse state if things do take a turn for the worse.

About Me

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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