Yes we have been in a recession. The good news is by the time the government calls it a recession, we will be on our way out.
We’ll know when its bottomed out when the folks that know how to handle the big money stop jetting from island resort to their many homes with our aunt and uncles life savings (and loans) while assuring us it can never happen again.
Say it long enough and it happens, and even if it doesn’t… at this point its about perception.
The only good thing to come of this, is that the rest of the world will spread its economic risk and move away from a US-centric policy.
I dont like to call it until the numbers on GDP actually come out..but the way it looks is yes we are in a global recession. What we do next can fling us into a depression or save us from one. Its really that simple.
Reading a number of these ill-informed, ignorant, uneducated comments about the current crisis (no doubts there) and the manner in which IGNORAMUSES not only attempt to liken it to the Great Depression, but actually claim it will make the depression seem like a tea party is quite frankly laughable. The way the comments are written, with typical American loud bravado and machismo is sickening. These clowns can’t even point to the US on a map of the world, yet these ‘experts’ purport to know the world is about to cave in and look out for GREAT DEPRESSION 2, coming soon to a screen near you. So typical of the intelligence of the average American. Do these clowns even know what a recession, let alone a depression, is ( I’ll give Chucky a hint: it’s not when the bank won’t give you any more unsecured debt because you’ve already maxed out your 5 credit cards). How on Earth any sane intelligent person could possibly liken the current situation to one of 25% unemployment is beyond me. Yet so many of the comments on this page do just that. One can only shrug and console oneself with the fact that one is dealing with typically ignorant americans.
The official definition of a recession is two quarters in which GDP has declined. That has not happened. What has happened is in a few areas (CA, FL, NV, and the rust belt states) have seen a lot of bankruptcies for different reasons (greed on the coasts and job losses in the rust belt). Since the areas and companies impacted most are friends/colleagues of the current administration and biggest contributors to our elected officials, incredible time and effort has been spent by Bush/Paulson/Berenake to scare us enough to bail out there friends. What should have happened is to let those few, albeit large companies fail. Note that according to the regional feds in Minneapolis and St. Louis there is no real credit crunch.
I keep hearing that the economy will be fine soon, because “we are America” or whatever. This is not based on any indicators. Common sense says that if you are in huge debt and printing money it’s going to affect the economy negatively. So until we change that situation, the economy is NOT going to get better it is going to get worse.
One more thing, people keep saying “this is not like the Depression, the Depression had 25% unemployment”. This is a false argument as we are only a couple weeks after the crash. It took awhile after the 1929 crash to become 25% unemployment, so please use some other argument that makes sense.
TOO ADD TO THIS COMMENT: MARKET CRASH WAS 1929 UNEMPLOYMENT WAS 25% IN 1933. IN ADDITION, IF WE CALUCULATED UNEMPLOYMENT THE EXACT SAME WAY AS THEY DID IN 19333 WE WOULD BE AT 12% TODAY. WAKE UP PEOPLE!
After 35 years of sacrificing, saving, and working two jobs, I’m being slammed just a few years prior to anticipated retirement. Lost my full time job after 31 years. There are few jobs (that pay anything above minimum wage) available in the NY/NJ metro area and most aren’t interested in hiring someone approaching age 60. Not only stocks, but bonds as well have been hard hit in this market. I haven’t opened my last 401K or other investment statements because I’m afaid to know the truth about how much I’ve lost. IF you can find a home buyer, they expect the seller to practically give their home away. And, of course, the basics continue to get more expensive. Wish I’d sold my house during the bubble, run up my credit card debt and had an extravagant time. What was the point of struggling and saving to see it all disappear?
The people that we sent to goverment to watch over things such as our economy have turned to be “FOXES IN THE HENHOUSE”.Greed has encompassed our officials and elected representatives and they are stealing all they can,while they can and getting away with it.The taxpayers pay ,pay and pay more.Is there no end to this scullduggery.???
We are IN a Recession – Some of us like me have been in a DEPRESSION for the last 2 years. I make as much as my Father did back in 1975 But the COST of everything has gone through the roof.
A house My Father Paid $32,000.00 for now cannot be touched for less than 200,000.00
Are we in a recession? We must be, that is all the media talks about. As for car and home loans, credit unions and community banks have plenty of money but you would never know it from the doom and gloom squads.
Recession? We’re already past that point. We’ll need a new term for what happens next. Depression? Nope – ‘Depression’ implies too much prosperity and hope.
Funny how the politicians don’t admit there’s a problem (remember McCain – ‘the fundamentals are strong’ and Obama – ‘I can’t see any of my proposed programs that we will be able to cut’). They won’t admit there’s a problem but will ask you to vote for them to solve the problem they won’t admit exists. Go figure.
We have been in a long and slowly sinking recession now joined by the rest of the world. This deep and long recession will deflate the too much inflated global economy to a painful trough. Then the global economy and financial systems will emerge as a reshaped economy based on the actual physical goods production instead of the non-realistic syber products and the ever-leveraged paper financial gains. The agricultural and industrial essential products for every day living will be in great demand. Also are precious metals, since many countries will consider going back to the good old gold based currency to stabalize the value of their currency, just like we did in the 1930s by FDR. Stabalization is the highest prioity to prevent another great depression. When Wall Street stock markets and world credit markets can not be saved, then the Feds last defense is to stabalize the US dallor to shore up our $trillions worth of Treasury bonds by solid gold based currency.
Builders speculate how many houses they can build and sell, buyers speculate that by the time the loan terms favor the bank they’ll have enough equity to refinance, oil speculators run up crude contracts speculating on inventory, short-sellers speculate the price of an equity will drop, speculating on whether the fed will adjust rates is now a pasttime more popular than the NHL and I have to speculate if we’re in a recession. I speculate YES. Wait until the January Christmas sales numbers come in – there’s your market bottom.
Visit your local car dealership and ask them. Better yet lets look at the unemployment numbers. Or how about the growth indicator of GDP the DOW. Thats has been doing great hasnt it. The panic doesnt help, but not being prepared could be a lot worse.
Does it matter? My investments, cash, and hopes are all down. Leave the recession discussion for the history books.
Yes, of course! I am 61 years old and this is the worst recession that I have been in. I feel fortunate to still have a job, and I went Bearish in the stock market in 2003.
Martin
Carson City
No it’s not a recession that takes two consecutive quarters of declining GDP, we haven’t even had one yet.
Of course we are in a recession, but I personally am in a “depression” knowing that I have lived well within my means knowowing that the ones living living greatly beyond their means caused this mess and I am paying for their mistakes.
Recession is a Wall Street term that is used by the real world only because we do not have a term for an economic stop on Main Street. Main Street and Wall Street have been uncoupled so long – since the Reagan Administration- that they are two separate worlds now. We have had jobless recoveries which obviously are not a recovery for Main Street but are for Wall Street. We have had to bail out Wall Street with Main Street dollars which was done by the government as fast as possible in hopes no one would stop it. We have had George II Bush’s ownership economy in which he has tried to get Main Street to invest in Wall Street so people are currently fearful of what is happening to their retirement funds like 401k’s. The real question is, can you safely mix Wall Street and Main Street and what should a Main Street economic slow down be called?
What definition are we using for ‘recession’? Usually once a term is conclusively defined, the question becomes relatively easy.
I keep hearing that the economy will be fine soon, because “we are America” or whatever. This is not based on any indicators. Common sense says that if you are in huge debt and printing money it’s going to affect the economy negatively. So until we change that situation, the economy is NOT going to get better it is going to get worse.
One more thing, people keep saying “this is not like the Depression, the Depression had 25% unemployment”. This is a false argument as we are only a couple weeks after the crash. It took awhile after the 1929 crash to become 25% unemployment, so please use some other argument that makes sense.
Remember Ross Perot? Didn’t he tell us the recession was coming? Wasn’t he dismissed as some Third party Kook by the media?
So I ask you if this third party person was so correct, why so many people are going to flock to the election polls to elect the very same members of congress, the very corporate chosen presidential Obama and McCain.
Are we slow learners or what, this Nov. 4th vote for your Freedom and Liberty! Vote Bob Barr and the Libertarian party, smaller government, means lower taxes, an independent view to bring in a special prosecutor to investigate and charge those responsible for bilking this economy out of 8 trillions dollars.
Of course we are in a recession. Its a “no brainer,” given the economic news. The fact that the official statistics are taking so long to catch up with public awareness on this issue feeds the fears. The longer the government tries to tip-toe around admitting we are in a recession, the worse it will get. Until the government officially admits we are in a recession, people will grow even more fearful because government assurances that we are not in a recession look so out-of-touch with reality.
My numbers are right in line with Richard from Langley- the recession hit us in August 2008- following good numbers from Q1/Q2 2008. Our people got nice raises, we invested in new facilities…humming right along. Then the sub-prime mortgage disaster hit and the momentum stopped dead in its tracks. In 52 years I’ve seen “economic downturns” and “market corrections”. The only term for this is recession.
According to CNN Money today, we’ve been in a recession.
NEW YORK (CNNMoney.com) — Wall Street cut bigger losses Friday Oct. 24 in the afternoon, but remained in the red, as markets worldwide slumped on bets that a recession is imminent – if not already in place.
The middle class is in a recession, the top elite are not. You see we may still have GDP growth but most of it is going to the top. Therefore, one class of people can be in a recession and the others not.
If we are in a recession .. it about time. Prices and the cost of living were getting out of control.
No, we are not. Either you are or you are not. What we think does not matter if we do not meet the criteria. All this type of question does is drum up more fear. We need less “the sky is falling” reporting and more factual information. This type of reporting just make things worse.
I keep hearing about the recession we’re either supposed to be in or that’s supposed to be coming, but I’m confused by what I see around me. Two homes in my neigborhood of roughly 100 homes have foreclosed, but because of divorce, not financial ruin. We have a bunch of pharmaceutical companies and a nuclear power plant here that employ a lot of people at very generous salaries with nice benefits. We’re getting a new Home Depot, Walmart, Walgreens, Target, 2 new supermarkets and 2 Starbucks within 1 mile of each other! Oh, and an upscale “lifestyle” retail center. And let’s talk about this- about 10 new bank branches (all different banks) within about 2 square miles. Plus, new subdivision developments are still being built (with major buying incentives, but building nonetheless!). And, three of my friends just bought new SUVs (pricey ones too). I don’t know. It’s weird. I guess if the pharmas start laying off it’s all going to hell in a hand basket, but around here, so far so good. The store parking lots are still full, the mall is bustling and those darned teenagers are still sipping Starbucks, texting and spending daddy’s dough. Could this realy continue if everyone is up to their eyeballs in debt? Do they not realize the party is over or is everyone in this area ok? I’m already cutting back on extras just in case, but the only debt we have is our mortgage(our home is worth over $140 k above the amount we owe) and one zero percent interest car loan. No credit card debt- ever, no home equity loans. Have been saving between 15-25% of our gross every year for 10 years. Guess we’re just un-American, non-consuming savers. Hmmm. The only thing that stinks is that we, like a lot of people, have lost a bunch of money in the stock market, but we’re also 30 years away from retirement! I just hope we’re not sitting ducks about to get washed up by the “slow tsumani” of a major recession. At any rate, in light of our apparant relatively good economic situation, we are certainly being more charitable. Now, I’ll get political- don’t take raise my taxes, take my money and give it to some able-bodied person who never worked a day or who is working under the table and not paying taxes. I’ll volunteer with Habitat, I’ll donate to the food bank, I’ll donate to the Red Cross. Thanks.
I think a recession is based on your personal situation more than anything. If you are struggling you will be negative no matter what but, if you have 20 Million in the bank then you will say everything is OK. Just ask the CEO’s out there, everything is OK according to most of them lol Its tough out there but there is no doubt that your personal finances will weigh in when answering this quesion. I belive that we have been in the making of one for a very long time but, its what happens when you compete with your neighbors to drive the nicest car and have the biggest house. If you cant buy it CASH you shouldn’t be buying it at all, the only exception is Real Estate.
At this point, it’s both superfluous and ludicrous to ask the question. It’s time to shift our focus on how to overcome the confluence of the pollution and detritus of greed, insufficient oversight, and other difficiencies in our economic and political systems. Also, I suggest that since there are thousands upon thousands of homeowners who have been foreclosed on, that policies and supporting bills and laws be proposed and passed that will aid families in recovering from this crisis – including relooking at bankruptcy law. The recent changes have really hurt consumers and backed businesses, especially lenders and credit card companies. The spirit of bankruptcy law is to provide consumers an opportunity to start afresh after certain failures or set backs.
We are in the final-phase of a recession that could lead to a castrophic depression if we don’t starting changing our lifestyles and spending habits. We are all guilty of causing this horrendous financial mess. There are only few who are money-wise and those are the ones who will survive this crisis. Ask any senior citizen from the 20s and 30s. Those who survived that crisis, has lived to tell about it.
As for the start of this whole subprime mortgage mess I am so tired of the blame going on one particular party when it should go to everyone in our government. The fact is the beginning of this whole mess is the passing of the 1999 Gramm-Leach-Bliley Act that repealed the Glass-Stegall Act of 1933 which regulated banks. (This act effectively deregulated banks). This was sponsered by Republican Phil Gramm and passed by both Democrats and Republicans in Congress and signed by then President Bill Clinton. Clinton also wanted to make home ownership available to everyone. So he gave Fannie Mae and Feddie Mac the green light to buy more mortgages (guarantee) loans from banks who made loans to people who were marginally credit worthy. Our government would like you to believe that it was those greedy “Wall Streeters” to deflect blame from themselves. They just took the green light from our government and made lots of money in the process. Now we are paying for it, as always. Know the truth.
1 the greed is rampant 2. the avg guy knows that he makes 100 times less than the greedy guy at the top 3. the only buffer of fairness and morality that is there to oversee and protect us th u.s goverment is on the take. 4. it has been thrown in our face how corrupt the system is and how the media cant even be objective. they tell the avg guy to buy well i say if you want people to buy than make the game fair, thats all the avg guy wants. If every problem was answered wit the thought in mind will this help better the lives of the avg person in the usa and if it was answered quickly and if that was the criteria we would have a better world. but that wont happen.
you americans have been riding a lame horse for far too long. stop beating it — the horse is already dead. take a look over your shoulders and you will see that your wagonwheels are sinking deeper into the mud. why the hell dont the lawmakers make the announcement of a recession then take the medicine and get over it.
Yes we are definately in a severe recession just look at the unemployment rate in California!!! The Third quarter GDP numbers due out next week will prove many people (that are in denial) how wrong they are!!!!!!!! That will be Bush’s legacy.
This is the problem. Every expert keeps saying that we’re not technically in a recession yet, blah blah blah. Unfortunately, for those of us “REAL” people out there, we’ve been in a receission for about 1 year now. I know there’s a technicality because there hasn’t been a drop in the GDP for 2 consecutive quarters, but c’mon, get a reality check…if this isn’t a recession, I’m really scared of what it’s going to be like once the “REAL” recession hits.
I have 52 acres of land with hard wood timber. clear title, value $231,000. I have $50,000 equity in my home.$89,000 invested in Gov backed CD’s. $98,000, down from $158,000 over the last quarter, invested in the stock market. Two cars paid for. I started a small business at the first of the year because with all my experience and degree’s in Programming I could not find a job. My wife got laid off in March of this year. She is a Data Base Manager trained in SAP and Oracle. She can’t find a job. I went to the Banks for a loan, with all this equity, to borrow $6,000 to get us through until my business starts turning a profit. I CAN’T GET A LOAN! I didn’t use my home as an ATM or purchase a home I couldn’t afford back in 2001 when I had it built. Are you calling my spending or saving practices irresponsible. We are in a recession. Just because it has not hit your neck of woods yet, there is no recession. Consider yourself lucky. And watch out, there is a big Bear in the woods behind your house and his name is Depression. And pray you don’t meet him.
“When the GDP shows 2 consecutive qtrs of negative growth, we will have been in a recession”
Tired of seeing this stupid idea over and over. Don’t you guys ever chart DOW in terms of Gold or any other commodity? Fact is the market has been in a bear market for 8 years. Inflated GDP numbers are recession even when you measure them in pricing of any basic commodity; so, you “geniuses” who keep quoting the dictionary definition need to use your brains for once and realize “dollar” is not a measure of economy when it is being deflated at an alarming rate! banks are borrowing like $105B (That Billion with a B) from the FED this week and you are saying everything is fine!
No, we are not. I still can’t find someone who will do repairs or remodel my little NY studio apartment for a less than outrageous price!
Yes we are, and it will get worse. The banks/financial institutions, freely gave credit and loans to people who may never be able to pay it back ever!
That will come home to roost very soon.
You can not blame the media for over hype. Just look at the government actions, they usually try to paint a rosy picture and they can not even do that anymore. This is going to get really bad. Yes, yes, yes it is a recession. It is time for new ideas, get ready for change.
You mean to say that there are people who believe that the economy is NOT in a recession?!?!
I am a professor of economics, so am therefore very acquainted with the technical definitions of a recession, and the role that the Business Cycle Dating Committee of the NBER plays in determining the state of the economy. I also work as a small business consultant for an arm of the SBA in San Diego. In that second capacity, I have come into contact in the last month with many small businesspeople who are seeing a steep and prolonged drop in business. Many of these small business owners have been in business for 20 years, and have never seen business conditions such as these. Other small business owners I meet who are struggling aren’t even involved in cyclical industries. While current conditions may not meet the technical definition of a recession, that point would be hard to explain to many people.
When the dust settles, and the economy recovers, it will become apparent that the economic downturn that we are experiencing will be the longest and deepest since the Great Depression. I remember the 1981-1983 recession, and this one to me is even scarier.
There are some here who keep going off on “the Libs”.
Folks, this is one thing that isn’t partisan. Sure, no Republican in my 40 years of life has ever balanced a budget (Clinton did, of course) but this is more the result of 30+ years of horrible, short-sighted policies coupled with clueless consumers who thought the good times would never end.
America spent itself into the poorhouse, mainly from military spending that just completely defies explanation.
If you don’t think we are in a recession approaching a depression you are in denial or don’t know any middle class folk. Chrysler just announced the lay off of 25% of their white collar people. Mass layoffs are on the rise and will continue for at least 6 months but before now and year end, watch out. GO RAYS
We have been for a while. This global downturn was inevitable with the junk Wall Street called investments and sold to banks here and the rest of the world. The worst is yet to come. Overall I am a very optimistic person but have seen this coming since 2004 when wall street started paying HUGE premiums for subprime mortgage and had an insatiable demand for them.
The definition of a recession is when your neighbor is out of work. The definition of a depression is when you are out of work. Many people are experincing a depression.
Yes, one of the worst in decades if not since the last depression. But we will muddle through if people don’t lose their heads. Fear is taking over right now. My numbers indicate the recession started last August, so it we are just waiting for official word that we are in a recession.
We are currently in recession due to pervasive nonstop reporting of negative data. The recession has occured largely due to the collapse of the the consumer’s confidence. I have watched the local economy come back to life and then head back into retraction and usually within 1 or 2 days of a negative news blitz. The news media has people who are really OK, believing they will loose everything soon. Also, I think the negative reporting has been in an effort to skew the presidential election.
No we are not in recession. Americans need to stop allowing the news media and corporations inject ill prognosis at us. Things are really not the way they appear. In a short time we will see America at its greatest economy ever. Everyone should not panic, just wait and allow the market to correct itself.
1) Depends on what you use as the definition of a recession. If you use the traditional measurement of 2 consecutive quarters of negative GDP then the answer is no.
2) I hope not, because too few people have been prepared for the current slow down let alone and actual recession.
3) Employment has remained amazingly strong. If people are excited now, imagine if we get to 12% unemployment like we had during the Carter administration. We would need to have Martial Law because people would expect to get everything handed to them.
Q ? some economist mentioned that we will see a bottom when oil and equity markets go separate ways or opposite direction, any idea why ? wouldn’t it make more sense to see lower oil prices so people have more money to put into this forsaken economy, any logical explaination?
Yes we are in a recession. What caused it? I laugh at everyone pointing fingers and asking people to live within their means. People need to live outside their means in order to keep the economy going. Yes the baby boomers did a great job by saving and sending kids to college. This country is not all about baby boomers and their actions! If the banks are forcing money down your throath TAKE IT! I used to get tens if not hundreds of credit offers in the mail. I was so feed up that I started accepting and using them all. I accumulated more than 150k in unsecured debt! Had a blast! I could could take responsability for my actions but its America I am a victim. A victim of those easy credit card offers. The banks should have not send them to me!! Now I am bankrupt and they will not get their money. I generated hundreds of jobs, ruined my credit, but like I said had a blas and sure enjoyed the $150k. Life is short enjoy. Credit and Credit scores dont go with you in the afterlife! If their is ANY!!
Heck no, the economy is running like a fine Swiss watch. Don’t believe it check out Pro shares Ultra Shorts ETFS financials, emerging markets, and real estate exquisite time pieces. The next fine Swiss watch to hit the streets is the collapse of the credit card Cos
WERE NOT IN A RECESSION- WE ARE IN A DEPRESSION!!! AT LEAST FOR ALL OF US WHO LIVE IN MICHIGAN….I PERSONALLY BELIEVE MICHIGAN HAS BEEN THE LEADING STATE IN THIS MESS, AND THE REST OF THE COUNTRY IS JUST NOW CATCHING UP TO US……. BUT WE STILL PRAY FOR A BETTER OUTCOME FOR OUR COUNTRY
Everyhting is pointing to 3Q coming in at a negative and 4Q off to a dandy start. So I’ll stick my neck out and say yes we are in a recession. Whew, what a relief. Now I just wish Bernanke would join me! At the same time I do agree with the “buy now” sentiment as emotions have taken control and they don’t work well in investing.
Could someone please remind americans what economic conditions were like in 1980? We had double digit inflation, unemployment, and interest rates. None of those things exist today. During the depression, we had unemployment rates of 25%. Today, the rate stands at 6.1%. Maybe we’ll get to 25% if Obama gets his wish with tax increases on business.
Primarily The Home Building Industry
has tanked, but they were builkding too many houses anyway. The Auto industy has tanked..but vehicles are lasting longer. Anything connected with
housing…from appliances to furniture
to building maerials, Anthing connected
to auto sales.
Yes we are in a recession.
Econimists need to reevaluate the indicators and the sources they use to determine what is going on and where. The little guy lives what is happening to him or her everyday. A number of us were saying things were already not looking good last June 07. Get out from behind the computer and all the numbers other people give out. Its just as bad as believing that China has only slowed to 9% growth. The numbers are only as good as the source. The Fat Cats providing those numbers and got canned with thier golden parachutes worth millions are laughing now.
If we are asking for a specific answer to a specific term, no, we are not officially in a recession based on the generally accepted definition of a recession. Are people hurting, absolutely.
Saying we are in a recession before the data comes out is like saying a girl must be pregnant just because she has been engaged in the act that leads to it.
If the news media would stop scaring people, maybe we would all stop stressing and get on with life. We may be in the start of a recession but if we keep our heads, we can turn this around. Use common sense and turn off the nightly news for a few weeks.
For those folks who have lost their jobs, yes, we are in a recession. For those of us who did not use our home like an ATM, purchased homes we could afford, and did not spend to excess, then no there is no recession. While GDP is definitely slowing or may have even slipped into negative territory, it has no significant impact on the more responsible amoung us. The question ought to be, do you know what a recession is? Ask that question, see how many intelligent responses you receive.
If it looks like a duck, and quaks like a duck…what the heck do you think it is? You bet your sweet bippy we’re in a recession!
The world is not ending. People should stop panicking. We will be alright. The economy is just bad now.
I think we are in big time recession. We are waiting for technical number to show up before we officialy call this recession. It is precisely this kind of error in judgment and “lack of common sense” that cause housing bubble and subsequent meltdown of today’s. Why we have to wait for a model to suggest recession The question we should ask decision maker what they do with warnings? I guess everyone ejoys the ride till the horse is dead.
We sure are in a recession, or contraction. I am an architect, and have several small projects ready to start, but the owners can’t get financing on what looked like a reasonble sum two years ago. I am dead in the water, and I can’t see land. 2010 maybe? In the meantime, I am planting a big vegetable garden and considering chickens….
What Chris from Bensalem fails to realize is you have to have a job in order to pay the dollar for the chinese made products…but oops the job you should have is now in China.
I always thought you were supposed to have enough capital on hand to cover daily operations and carry you through a rainy day. Personally, I think the recession officially started the day it became an accepted business practice to borrow so you could stay in businss and that was a long, long time ago. Easy credit for regular folks came later.
We are in a new stage of economics. The average consumer is leveraged to the max in debt, and the middle class keeps getting smaller.
Where in history has the middle class been in the minority?
Normally the middle class is the largest class and helps contribute greatly to the economic well being of the country. Now if this class is shrinking who will fill the void. The upper class?
How many TV’s or purses or nice clothes can 1 person buy that makes over 5 million a year vs. the 100 people can buy that make 50K per year.
We were in a Recession in 2007, today we are in a Depression, or the beginning edge.
I am 73, and remember my grandparents, and parents losing everything in the 20s, and 30s.
As many of you have written here…a resounding YES we are…. knee deep in a recession. Never in our history, have there been so many factors at play that are all coming together to destroy the current infrastructure…you know what they are and there is no fix for this other than time and during this “time”, maybe 3 to 5 years, I believe we will enter the mother of all depressions. I am an optimist…but the writing is clearly on the wall….if you have any cash…hold on to it!!!!!!!
I live and own a biz in Mexico. My suppliers in the USA say things are still pretty good. Here, it is slowing but not bad. Lots of Americans still looking to sell product here. I cannot see much change
The average person (I refuse to use the term “Joe Six-Pack” as I feel it is an insult to working people) does not care if we are in a “recession” or not. What they see is the cost of living going up, their paychecks staying the same, their neighbors losing their jobs, and their retirement funds and home values rapidly declining.
So, is the United States in a “recession?” I do not know, but I am certain that many of our fellow citizens would think so.
I don’t think we are, really. Warren Buffet understands the American economy possibly better than any other person on the planet and he doesn’t seem to think we are. That should tell you something. Regardless of that, the technical indicators say we aren’t, so we aren’t. We’re getting near a recession no doubt, but are not quite there yet.
I also can’t believe people are seirously thining we’re in a Depression. Compare 2008 to any of the years of the Great Depression. We’re much better off today. Ask someone who lived through it, for that matter. This is not even close to a depression.
Will someone please officially call it a recession?
Then you guys should stop asking if we’re in a recession.
We are clearly in a recession. Got it?
I’m fine. No debt at all. I’ve been saving my butt off for years knowing this was coming. If you didn’t see it you’re a fool. If I can hang onto my job for the duration I’ll be set for life on the other side. If I can’t…well…I’ve got a tent.
Yes we are entering a recession.
What needs to be done?
Keep energy costs low.
Make Banks lower home Mortgages to 3%
Make Credit Card Co. drop rate to 3% on existing balances. So people can see a light at the end of the tunnel. And put a cap on new balances of 12%.
Make Banks lower current home equity lines to 3%
And freeze food prices for 6 months
If the idiots in Washington would do the above, it would correct over 90% of the problems we are having. If they do not, we are far from the end of this nightmare.
a recession ? BRING IT!! that should be the attitude of anyone like myself who has more than 10 yrs of investing til retirement. cheap mutual funds and stocks wont last at these prices….heed Warren Buffet: Be fearful when others are greedy, and be Greedy when others are fearful” (as in NOW) dont be scared off by the cowards, the good company’s will come out of this mess, the world is not ending. I saw the same thing happen around 1991 during the Gulf War. Saw a stock i was holding drop to 1.25 a share, Nova Pharmaceuticals. A year later i sold it at 15.00 /share and made out like a bandit. Take heart, tell the chicken littles to lock in their losses if they want to, and shut their pie holes!
I am no Bush lover but does everybody forget that for the last decade or so that every sector of our economy has been booming until just recently? Also we have a democratic controlled congress. The problem is that everyone thought the bubble wouldn’t burst but now it has. People and financial institutions got greedy and/or reckless with money so there is enough blame to pass around. I don’t know why anyone would try to buy a house without first sitting down and “DO THE MATH” to see if they could really afford it so they are just as guilty as the banks in some cases. All I can say to all this is – a democratic president and democratic congress…..HELLO BIG GOVERNMENT SOCIALISM!
Are we in a recession… yes. Depression…. no. And not even close to a depression. I don’t think anyone here is even old enough to know what the GD of 1929 was like. Myself included. Unemployment was at higest numbers ever, families on the verge of starvation, etc. We aren’t even anywhere near that yet but I’m also not suggesting that it couldn’t happen again. I think one of the biggest problem is the media. Fear is helping drive this whole thing and if you just look at the messages in this column its obvious how much of an impact it is having. There is a major fundamental problem but if we all stay positive and continue to believe in the will of the country we will be much more likely to get through this. Let’s not give up yet.
CNN, you have *got* to be kidding me. What kind of insulated-from-reality intern, living off a trust fund, came up with this question? Uhhhh…. no, the fundamentals of our economy are strong–which is why the Dow has lost over 400 points today, is sinking like a rock, and my 401(k) has lost more than 40% of its value. Get a clue.
In response to Tiller in Dallas, TX.
They classify unemployment differently now than they did in Clinton’s years. Also, the Fed Funds rate being low is NOT a good thing… that is being done to work against the slow-down and keep up bank lending.
Saying the fundamentals of the economy are strong *could* be a valid statement depending on the context. It could be true if you were comparing our fundamentals to the fundamentals of a third world country’s economy, but for U.S. economy standards, it is NOT strong.
America is becoming a debtor nation. This is a scary (but exciting) time for the U.S. It’s going to be very interesting to see what happens, but I’m excited to see how things change. Hopefully, I won’t see so many spoiled brats on MTV anymore complaining about the $100k SUV they got for their sweet 16th birthday. I’d like to see them walk in a “normal” 16 year old’s shoes.
Cry babies.
Do you people really think that if you do not say it “offically” it can’t be true? Wake up! We are in a RECESSION…lets move on and fix it. It is time everyone stops trying to keep up with the Jones’s and live within their means, including our government. Come on, $150,000 for Palin wardrobe! What message are we sending?? Average american she is not! We did not get here over night so it will not fix over night. At this point our great-great grandchildren will be paying for this mess.
It is about time they said we are in a recession rather than deny what we all know is a recision mild or otherwise
So the housing market is going to where it should be!? To be paying $250 large for a two bedroom on a 1/4 acre lot is insane. To expect a mortgage at 2% is stupidity. The markets are just responding correctly. And every high roller who was banking on this market to fill their pockets is in panic mode. Hold on to your hats recession is here to stay. Thanks financial wizards.
Here is what is amazing to me we have been in a recession and in some parts of the country depression. Now with this being said what did people expected the last quarter to look like. To me it would be obvious bad to bleak which was to be expected, so then what is the big deal with market. I honestly believe we are being toyed with people are selling off and the market is dropping, while others are picking it up at a fire sale. The government has now dumped more then a Trillion dollars into the economic crisis and to no avail no slow down on the fall, and when a little light shines through the nay Sayers come back with the word recession. Folks we are well into a recession, the government needs to take some of that money and sink it back into the economy, IE infrastructure. The jobless rate is going to go up really fast and real soon, but if we were to take lets say 100 – 150 billion dollars and sink into the infrastructure we would be putting people back to work, and in return more then 30% of those dollars would come back in tax’s. People who would be working more would then spend more and confidence would come back, I believe this occurred in the depression era. Also with the housing market down a lot of those lost jobs can be absorbed into infrastructure projects a lot of trades people would have the talent to make the transition. But a guess bottom line is we have been in a recession at least the last quarter, not that indicators would prove it out, but so much for indicators see where that got us.
Thank you the Liberal Congress for keeping in check Fannie & Freddie. Barney & Chriss did good and now will re-do history so that they will not have any blame. Everybody has to share the blame but Congress is the one that makes laws and breaks them.
I WONDER WHY THEY WAIT SO LONG TO REALIZE THAT WERE IN A RECESSION I’VE BEEN SAYING THAT SINCE MARCH 07.
We have been in a recession for a while now, and we are quickly heading for something much worse.. Our economy is based on consumption. (70% of our GDP) Add to that a negative savings rate for the average American who is also in debt up to their eyeballs. (Our government isn’t in any better shape) We simply have reached the breaking point where Americans can’t keep “consuming” without paying for it. We have been living in a Peter Pan Neverland economy of easy credit where thousands of jobs were created and lots of money being made without any real goods or services being produced. It worked out real well as long as everyone “believed”. Our government is desperately trying to keep us believing with their bail outs and stimulus plans. It was all created out of thin air, so why should anyone be startled at the loud “POOF!” sound as it all disappears??
HAHAHAHAHAHA Are we in a Recession? It is far worse than that. I had to lay off employees last week, first time in 21 years. I have not taken a paycheck in weeks (I am the business owner). This Government is driving America into the ground….and what is their solution? Send out more free money that is just more bad decisions.
This “Fiat Money” system is failing…if you really want to understand what is happening…google “Money as Debt video” and spend 47 minutes of your life and understand why we are doomed!
There’s no question that we are in a recession. The only question is whether we are in a depression.
We all seem to agree. We’re in at least a recession, but ideas differ as to the cause. I’d like to add my 2 cents. Sure Fannie Mae and Freddie Mac carry a big load of the blame, and Wall Street is to blame for derivatives, but I think what is really sinking the ship are five alphabetical letters: NAFTA.
hello! we have been in a recession for months now. nobody wanted to face the truth. everytime i mentioned it people would laugh. guess what? in a month or so it is going to be called a depression. who the hell is laughing now? oh i forgot to mention the market being in a correction, as what it was being called a few weeks ago, that was the most stupid buzz word i have ever heard. it crashed DUH! well thankyou for letting me vent.
What an inane question – Are we in a recession? Yes Virginia, we’re in a recession (and it’s going to get a lot worse before we’re out of it). The Fed’s desperate moves of throwing everything at the financial collapse (to no avail) tells you how bad the situation is. Was anyone else disturbed by the big smiling dopes in Washington holding the recently passed bailout bill as if they delivered a new baby and it was something to cheer?
You’ve got to be kidding us: are we in a recession? I’ve been out of steady work going on two years now, and have only managed to secure two contracts during that time. One five months long, and the other for a month. I’ve gone through my savings, including my 401K. I’ve lost my house to the bank, and the credit card companies are hounding me.
Maybe it might be better to ask what we ought to do to get out of the mess. The last time the economy looked this bad, the downturn lasted 10 years and it took a world war to put us back on track.
Yes we are in the beginning stages, and there’s no doubt about that.
Even though our exports are increasing because of the weak dollar, we should not be fooled by those numbers becuase we are in a recession.
Someone stated earlier that the fundamentals of this economy are STRONG!The only highlight is it only costs $35 to fill my tank instead of $50. You’ve been reading too many of McCain’s cue cards! This economy stinks; and it’s not hard to tell where the stench is coming from!
All I can say is I bougt a House in a Short Sales in April and before I bought the house I wanted to show stable assets.
To show stable assets I moved all funds in my 401(k) and IRA’s to Money Market Accounts, borrowed from my 401(k) to pay off all the Credit Cards, and I did all that to show stable assets and that I did not have any liabilities to a lender and made sure to have 6 months salary in Savings.
Needless to say moving everything to Money Markets in my retirement accounts was not suggested by my Financial Adviser. But then again he lost 40%+ in portfolio where I gained what 4%.
I guess I will survive this recession, but will I survive the coming depression?
We are not in a recession, or a depression, although many are depressed. We are in a human mind and spirit worldwide meltdown. A few issues to address-loss of homes, jobs, retirement income, pensions, medical benefits, feeding the family, etc. We are merely facing a “challenging opportunity” to correct the personal greed, corporate mis-management and political corruption that has plagued every hard working person for many, many years. If anyone believes the Republican or Democratic party will help solve todays issues, or the great corporate leaders will find answers, forget it. Take back your own life, and determine your course of action to provide the best possible solutions for you and your family. Don’t rely on anyone but yourself.
If we did not let banks steal our money through crazy high interest rates (aka Usury) on both home loans and credit cards we would not be in this position. It is the banks theft and greed that has brought us to this point.
No, it not a recession. Nothing changed in the past few weeks except governments stepped in to guarantee funds. It’s better than it was several weeks ago but people are acting like the world has changed. Life goes on and consumers will still want and need, companies will continue to make profits.
The US has been promoting a one world economy. We have been bringing the rest of the world up to our standard of living. In the process we let too many jobs go to outsourcing and Industries moving operations over seas for cheaper labor and taxes. How are we being thanked? With higher oil prices and terrorist who don’t want any thing at all to do with our standard of living. NAFTA and CAFTA were the beginning of the recession. We have been in a recession for two years now. The question should be, when will we start the depression? Repeal all the free trade agreements and restore our economy, then slowly bring the rest of the world up, but only if they want to be brought up.
On a national level, yes. The outlook though is different if you have a job and aren’t saddled with debt.
Considering that we are in the earlier stages of an economic meltdown, I don’t think recession is the appropriate term. A lot of correction will be needed to make up for the last 5o years of irresponsibility and mismanagement.
The good news is that there is always opportunity. Gold and silver are really cheap right now. Ishares “slv” and “gld” gave me a really easy way to stock up. My biggest THANKS to all of the “sheep” who are panicking and creating these wonderful opportunities.
We are not in a recession. We’re in a dangerous protracted slowdown of credit markets during a time of rising unemployment, stagnant or declining wages, plummeting home values, 401k wipeouts, savings meltdowns, tsunami-like foreclosure statistics, and a rapid decrease in expenditure for the average household. Oh, and kids can’t get student loans too. Or car loans.
So no, we’re not in a recession.
You bet! I’m so shocked that the people around be are so oblivious – they got their jobs now and think its a blib! Come on – the next year will be telling…
WE AREN’T IN A RECESSION, WE’VE BEEN IN A DEPRESSION FOR QUITE SOMETIME NOW,PEOPLE IN WASHINGTON ARE TO STUPID TO CALL IT WHAT IT IS, CONGRESS IS JUST A BUNCH OF LOOSERS!
Many parts of the economy have been in depression for over a year. Just look at housing, autos, and now retail is coming into it. The arrogance of Greenspan and, especially Jean Claude Trichet of the ECB, has led the world into a massive economic conundrum.
Where was Allan Greenspan with his now famous line of “irrational exuberance” with respect to the real estate market? He loved talking down equities, but would never pull the rug out from under his greedy constituents in the banking sector. And, Trichet is the worst as far as calling inflation is concerned. He is so far behind the ball, he needs the Hubble Space Telescope to get the picture.
Hubris, arrogance and greed have caused this fine worldwide economic calamity – and it will take plenty of humility and wisdom to get us back out of it. The recovery will be long and hard.
Of course we are in a recession. Consumer spending figures have been corrupted by the tax stimulus package and inflation rates are massaged to remove items that don’t let the numbers meet the auditors goals. Honestly the people of this country can handle hearing the truth so why can’t our government handle telling the truth.
You know what, I never thought I would live through a situation like this–NEVER. And I hope to God I never have to fight to survive. 50 years ago people would not have tolerated Bush. He’s destroying our country, literally and intentionally. Wake up!
Bush will not admit that we are in a recession, not on his watch and not before the election.
HOWEVER, it would be much better to admit that we are in a recession now, then have to admit that we are in a depression later.
SUGGEESTION; make sure your credit cards have a ZERO balance, keep putting money in 401(k) but in the Money Market account, have some cash in the house and if at all possible buy some silver and gold coins AND finally, stock up with several months of Canned Goods, Rice, fill the freezer with meat and store a couple cases of bottled water.
If you happen to get laid off the suggestion above will pay off…
We are in a recession, not a “correction” as stated earlier. As far as people living lifestyles beyond their means, thank the credit card companies for sending everyone blank checks to just sign and deposit. Between the banks giving out sub prime mortgages, to OPEC and their greed, this is something that will take a while to recover from.
Officially/Technically we are not in recession. If we have two quarters with negative GDP growth, then we will call it as is in receission. Check latest GDP growth here
http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm
Exactly what has to happen for an official declaration theat we are in a recession? and who determines that and declares it?
Are you kidding? I work for a “business restructuring” firm which does well when a lot of companies go bankrupt, and business is booming. Even better, now it looks like the Democrats will be running things which means higher taxes, less trade, less economic growth, and more business for us. At least someone will be hiring!
NO
We are not in a recession.
But thanks to the Democrats trying to win an election at any cost, they have been saying since the beginning of the year that we are already in a recession which has directly resulted in America heading toward one. Their scare/fear tactics have now gotten out of control.
Of course we are in a recession.
The government changed the methodologies used to calculate the GDP, CPI, and unemployment in 1981 and 1993 to appear more favorable for political reasons. If this were 1980 we would have been in recession for over a year.
Light at the end of the tunnel.
http://www.briefing.com/Investor/Public/Calendars/EconomicReleases/exist.htm
It’s sad that schock value has take over the news. Also don’t try to push all the blame on Republicans. It’s taken greed from both parties for this one. Where’s the regulation? Both sides have removed regulation of business for profit.
I believe that we are already there. Nobody seems to want to use the “R” word, especially with an upcoming election.
First we can not say we are in recession because we have not had two negative quarters to Offical call a recession. However we need to let the bankruptcy judges allow individuals who are having troubles with their mortgage be able to adjust their rate just like the commerical side. However these mortgages have been sold through the globe and we will continue to see this until something is done with the housing market. The bottom line yes we are in the process of going into a recession since everything is going up and we can not afford a standard of living
Truth is: We are in something–whether fear driven or an unavoidable loss of global preeminant status, the U.S.A is far from out of the water yet and who knows what is next. Folks, this is the U.S. and world financial system’s we are talking about and it can go either way. This is not a recession, but something that needs a new word for description.
More like in the midst of the greatest consumer swindle in history.While certain large players have stashed huge bankrolls to go shopping in the midst of an engineered crisis the key questions of millions of home owners being talked into mortgages that they were told (but not on paper)wouldn’t rise for years giving them ample time to refinance–and then within 1-2 years suddenly tripled or quadrupled–and the banks selling non regulated trash paper–while the SEC does what?Anyone notice who is buying up all these super cheap assets now–anyone notice that the emperor is naked?Time for America to demand its constitutional rights again,nationalize the Federal Reserve(a privately held corporation that the US only has 1/5th voting rights in-and is owned by foreign banks–but we pay taxes to–)and cut off the control of thieves who’s only aim is to keep private citizens and corporations in complete debt to them–in the guise of facilitating their financial activities.
We still see daily articles to the effect of “…on fears that we may be headed for recession.”
Why are we so afraid to admit it? Because that would mean that we’d have to admit that we can’t pay for the lifestyles we’ve been living for the past 20 years and have to change our habits.
We have become so entitled, we have now entitled ourselves to no recession because, of course, we deserve it!
recession, depression, whatever you want to call it. it is of our own materialism, money loving, i can have because i want it that brought the world to this. now maybe people will stop putting their faith in money and materials and start putting their faith in the real God.
Are we in a recession? We are entering “The Mother of All Recessions” and but midway we’re going to turn into “The Father of Great Depression”
I think it will come to the total collapse of worlds economy and emergence of some sort of community-based culture. Simple craftsmen, barter, neighbours helping neighbours.
Kapitalism is DEAD! Global Lean to The Left, politically speaking is what we are heading to!
We have been for quite awhile.
We began heading towards a recession in March of 2007. However, the silly money folks disguised it by moving into the commodities market in early 2008. We are now burning off the excess which should not take a lot longer since it is happening so rapidly. The new hot issue will become health care costs. Insurance premiums are looking a lot like housing and oil pirces use to. The question is, what will cause them to be checked and brought back to earth.
What is happening currently in the finacial sector and global world is the result of one group of people controlling the wealth and media for the advancement of their agenda. Americans should wake up and look at the history, especially prior to World War II. I am sure that if they are smart enough, they will find the answer.
Frankly I think we have bypassed a recession. I think we are in a depression!!!! Both finacially and physically!
We are in this recession because people were not responsible for their investments, not because wall street is so terrible and deceptive. Big investment banks like Goldman Sachs does not lend money to invidivual people to buy houses they can’t afford. Its really nice to blame the rich for everything, but what people dont notice is that the rich pay the majority of the taxes in this country. Beat on them all the time, and our country in going to go down the drain even more that it already has. People should really realize that for the past many years, the fact that Britney Spears was pregnant was considered breaking news. Americans are not interested in any global issues that may affect them or other countries. Thats why we are in this mess…because we are ignorant. Even with this mess, about half of us are still willing to vote for a glorified soccer mom with terrible grammar to potentially lead our country one day. Thats just scary, I guess we haven’t learned our lesson yet if we look up to people who can’t even speak proper English to lead this country.
Why does the media keep asking the same question when the answer is obvious? Yes, you betcha’, we’re in a recession. As the economy continues to tank, job losses will necessarily follow. Many now working will be out of a job in six months. It just might be a good idea to drop a few coins in a rainy day fund.
Anyone above the grass knows that we are in a recession which is about to grow much more serious as world markets continue to drop. The war is another issue which is a giant drain on our resources. Of course – just a few weeks ago our great president informed us that the economy is generaly strong – McCain went along with this Bozo assessment as well. Are they above or below the grass?
Our area of the country is one of the best insulated from the economic problems and I can tell you that the job market here is rapidly crashing. Realistically, even if all the worries about credit are overblown (and I don’t think they are) companies and consumers are pulling back at nearly unprecedented levels and that guarantees we are in recession regardless of anything else.
No credit, banks failing, high unemployment, house values falling…
Duhhhhh!!!!!!!!!!!!!
Why is no one in power can call a duck, a duck?
In 1929, they called this a depression. We’re in the beginning of one.
When considering who to blame, I think it’s either the Tooth Fairy or the Easter Bunny. Where do you think they get the money and candy from? Santa Claus?
I havent seen unemployment numbers shoot up like every other wk in my whole life!!!! This is more like a transition into a Depression for 2009
Get ready folks!
you got to be kidding me right?
the coming global DEPRESSION will make the 1929 depression look like a trip to the park!!!
be prepared!!!!
Are we in a recession? My bank account sure is recessing…depressing…falling…breaking…
Lets see…
My home is worth far less
My costs to run that home are far more
My food cost is up at least 20% overall
My interest at the bank is at an all time low
My line at the bank is at an all time high
My work is getting cut back
My days are being made longer
Ya… we’re all F I N E
A great deal of poor decisions have been made, we all can see this. Most of these comments are just complaints, stop whining and offer up suggestions to help the economy. As for all of those blaming strictly President George Bush, please realize that the majority of the power is located in Congress, here’s a new idea stop electing career politicans who owe too many people too much. Change will not begin with the President but with Congress, and the PEOPLE are the ones that elect their representitives. Pick representitives that do not have baggage that may swing their vote away from the public good.
Ask anyone who has a job outside of government, and education. We are in a deep recession, and headed for a repeat of the 30’s. Even the people who did it right the last few years are suffering mightily.
LOL “Are we in a recession?” HAHAHA WERE on the verge of the GREATER DEPRESSION! The likes of which this generation has never seen….its UNPRECEDENTED!
Thank you Bush / Republicans! This is because of you! I have sat back and watched this mess and now it is over when the Dems get in office this will be fixed and you classless repubs will claim you started to fix it. Just like now, it takes eight years to bring the economy back? If Mccain is so insightful why does he not start now and get with Bush and start his plan if it is going to work? Or if not now how about 5 years ago? What a waste of a party! If you don’t understand in the repubs party the rich get richer then you need to do some research! That is their main objective the rich get richer. So if you want to hear more record breaking profits from the oil companies vote for the repubs. All the rest of you who actually know where both parties stand vote the dems. Think about it if the repubs are going to give tax breaks to 5 million plus then taht is less than 5% of us so this makes a landslide vote of 95% dems and 5% repubs. RESEARCH BEFORE YOU VOTE! Don’t believe me look it up! The media can spina ny story any way they want!!!!
Yes, we are in a recession even though the current slow down has not been formally given that title. It will be painful and longer than people wish it to be. It will be worlwide and will affect us all: every state and every industry. There will be panic and food shortages so get ready. Unemployment will reach double digits and mortgage rates will go up to 8%-9%. This will put even more downward pressure on home prices prolonging the pain. GET READY FOR THE MOST EXCITING 2-4 YEARS OF YOUR LIFE.
Ten percent of the population controls 70% of America’s wealth. 1% of the population controls 40% of Americas wealth. The large moves in the market are not being caused by the average US citizen pulling money from the market. They are being caused by a very small percentage of the population moving their money out of the market.
When the talking heads tell you to stay in the market, they do it so they can continue to withdraw their money while there is some value remaining.
No. We are not in a recession. Unemployment is low around 5.9%, lower than during the Clinton Boom years. Interest rates are around 4%, lower than the Clinton boom years. Fed Funds are around 1.25%, lower than the 6% of the Clinton years. We are not ever close to a Depression. To suggest so would be reckless and irresponsible. During the 1930s Depression, there was no saftey net, no unemployment benefits, social security, and unemployment was 25%. We are not even close. I guarantee the same liberals claiming we are in a slowdown will claim the economy has bottomed and turned around when their candidate wins on Nov 4. Nope, anyone who thinks this “slowdown” is clearly deranged, mental. It’s all in your head. The fundamentals of the economy are STRONG.
My thoughts on outsourcing American jobs. Outsourcing / offshoring provides for cheaper products offered to the american people. With cheaper products comes more spending on more products. When consumers have more purchasing power, there is a need for increased jobs. Outsourcing in the end provides for increased American jobs. Just because we pay China 5 cents to produce goods, you are buying those products for a dollar versus paying Americans to produce the same product for a dollar and you purchase it at two dollars. You now have an extra dollar to buy 0.3 gallons of gas!
Uneployment is only 6.1%, the average since 1945. What is the real formula for calculating umployment at 11.3%? I am Chris and I approve this message.
Yes, we are in a recession. My job is currently secure helping property tax payers and they are obviously hurting. My husband’s job depends on the housing and home improvement market, and I do worry about his job security. Most Americans have been living a lifestyle that far exceeds their means for quite a while and it is now coming to a head. Government regulations, financial institutions, and the people who decided to stretch themselves too thin have caused this recession. We are all at fault.
When the GDP shows 2 consecutive qtrs of negative growth, we will have been in a recession. And if we change that definition of a recession, all previous historical measures will be made invalid
It’s time to buckle down and pay the bills due to people living beyond their means. As long as the governments set the lead by spending beyond their means many will follow their example. Why is there no money for borrowing out there?? It’s all gone!! Time to put money back in the kitty. It means that we will be in a recession for a little while till Joe Plumber is out of debt. Yes we are in a recession and it won’t get better till we fill up the bank again.
Simple math… Always keep 10% for yourself for rainy days. It is going to pour!!
Its hard to know when the government monkeys with the CPI numbers, M3 isn’t reported anymore and the media parrots policy by quoting this ‘government official’ and this ‘lobbyist/investor’.
Most of the financial shows, talking heads, and ‘analysts’ got it wrong for so long.
We need to understand what the business cycle is and how it is caused and who is to blame.
Mises, Hayek, Rothbard, Rockwell, Hazlitt all got it right. The Austrian School of Economics is the only theory that explains what has happened and how to solve it.
Do we really need a depression atmosphere to make us know we are now in a recession. They have already said half the nation is in one.
It all points to high oil prices, unethical CEOs, predatory lending, and consumers making big mistakes.
The future of the American economy has been receding ever since industrial jobs started flowing out of America. The war in the Middle East and the real estate boom were the only things holding up our otherwise outsourced economy. The only way to stop the recession is to find a source of income for the workers who don’t have decent jobs – let’s hope that the next President can guide us toward that goal.
Our perception of reality is our reality. My reality is that I put everything in cash long before the crisis and now is a great time to buy low. Markets always move in cycles, learn from history and plan for the next opportunity if you missed this one.
Are we in a recession?
No. We are in the entering edge of a major depression, slowly, painfully, but surely coming to pass.
It is really fasinating to see the question and finger pointing as to who is to blame. Workers made money, suppliers made money, flippers made money, banks made money all because of cheap credit and increasingly inflated values allow millions to take false equity out to buy cars, Ipods, Starbuck’s and other consumeables,,,,,now we want to blame Bush and the Republicans, and vote for higher taxes, fewer jobs, and spend thrift Demo’s who will just dig us deeper in the hole, grow up America take resposibilty for your personal budget, before Obama spreads the wealth and dictates how you save or spend your own money.
Mick Newberry
“, the news will be that this economy is doing pretty well. 94% of america is working. 85% of America was working when Carter was president. Sadly, memory of REAL RECESSION is forgotten
”
Except your forgot to mention that unemployment calculations have been changed since then.
P.S. the real rate of unemployment is actually around 11.3 %
Yes we are in a Recession. Have been is a recession since early this year. It was brought on by corporate greed and poor money management by the general population. The united States need to start taking care of its country and people. We need to stop our companies from moving beyond our borders in search of higher profits while the American people suffer. We need to stop losing our jobs over seas. We need to stop our oil dependency. Remember, We the PEOPLE…..
Call it what you want, but I think that we are seeing the beginning of a shift in power away from financial services, and it is about time. Most of the people on Wall Street should be put in jail for the what they did to our economy. Our country has been weakened by poor decisions fostered by Wall Street. Technology is rapidly changing the makeup of the economy and the way we make money. Americans are not just going to sit around and starve because Wall Street is depressed that they have stolen all the easy money from institutional and individual investors and made huge errors because of their greed. I am betting on Main Street to get back to the basics and rebuild the U.S.
What a stupid dumb question to ask!
No! We are in Bushonimic boom times!
If this ain’t a recession, then I was born last night!
We are in recession no doubt about that but the problem is we are not realizing the gravity of this, this could lead us to depression. we should make some real honest decisions.
Common people, it’s our own damn fault we are in this mess. Americans in general a very lazy, dont like to read the fine print, and are ignorant when it comes to asking questions, demanding answers, and not signing something if it is absolutely not clear! I understand and agree the innocent citizens were sold unsuitable mortgages, but are we so innocent if we trusted banks and brokers with our money? This carries the same concept as the enron scnadal … believing that these corporations will act in a fiduciary manner, because they promise to.
Why is it that the baby boomer generation was able to make it through the 70’s? With 3-4 kids, mortgage & car loans at 11%, and a 1 income family? The answer is because they budgeted, new how to handle money, lived within their means, didn’t carry a credit balance, and still were able to save money.
It’s that age old value – if you dont have the cash in hand, you don’t buy it!
I blame us, the american people for the condition we are in. For all of you who have saved for these rainy days …. I tip my hat to you. We cannot rely on the government to teach us fundamentals that are our own obligation to learn, and responsibility to maintain.
The financial markets were driven by fraud, abuse, and greed, as we all know now. Many of these same unprincipled people and concepts are still in place, running these markets and the government is throwing good ‘taxpayer’ money after bad to these vermin. In market downturns of late the economy was still strong and was turned downward by triggers outside the market place. This downturn is different. It’s internal and catastophic in nature. In the crash of 1929 the market didn’t return to pre 1929 levels until 1954. This is not a market correction folks, the walls are crashing in. Don’t let yourself be fooled into believing the maket will come back soon, so stay the course. This will be a long, long process that will change market and business principles and practices, hopefully for the better. It’s going to be years, not weeks or months. I think the term recession at some point in this current downturn, will be putting it mildly.
FACTS
So far, the U.S. economy has largely been able to go through the financial crisis growing by 2.8 percent last quarter and without that much damage. However, the only reason why GDP growth has been so positive is the recent surge in exports which was caused by a substantial depreciation of the dollar and the tax rebate program implemented at the beginning of the year. In fact, although the U.S. economy is still not in a technical recession, the signs of slowdown of the biggest economy in the world are multiplying. For instance, house prices are still declining and retail sales and industrial production are already negative on an annualized basis. Moreover, manufacturing contracted in September at the fastest pace since 2001 and factory orders slumped more than economists forecast. In addition, the unemployment rate is rising faster than at any time since the early 1980. Indeed, jobless claims climbed to a seven-year high and it are predicted that non farm payrolls declined another 105,000 in September.
Michigan has been in an unoffical recession for years. Welcome to everyone else!!! As you join us, I hope that Michigan doesn’t sink into depression.
Zig Ziglar had it right that the media has successfully predicted 36 of the last 3 recessions. Textbook recession a GDP growth below 0% for 2 consecutive quarters. GDP has not dropped below 0% growth yet. Is the growth in GDP getting less and less each quarter? YES. But we have not shrunk yet so we are definitely in a slowdown but not a recession.
Are you kidding. The insiders who sold off in june 2007 saw the recession then. And 1% discount. Japan tried that in 1990. They are still in recession. And for the pinheads who think Japan and China own us. Go check out the nearest missile silo. Are you as a redblooded American ready to surrender? Shame on you.
How do you define recession? We have not seen two consecutive quarters of negative growth, so no, we are not in recession. It’s all about employment. If people start to lose their jobs, then the recession (or worse) will follow.
The media are partially responsible for the economic situation we are in. They should have been sounding out about the coming economic crisis a year ago.
Any educated person who was honest with themselves could see what was on the horizon, yet there was barely a mention in the mainstream media about the impending implosion. They always interviewed so called experts from the very businesses who created the mess with no countering opinions.
To this day, their failure to report continues. They allow politicians and economists to insist that stopping the slide of housing prices is in our nation’s best interest and will solve the crisis. This couldn’t be further from the truth. Until home prices settle at a level which is affordable the crisis will continue. Affordability means 2.5 to 3 times median income for the median home purchase price. One hundred years of house pricing data back this ratio up.
Having lived through the last three recessions I would judge we have been there for a while. When the auto and housing industry goes down it affects more jobs than you can imagine. I am retired from the construction industry and know first hand. Its here!!!
I really feel that we are in for much worse than a recession. I’m not an expert by any means but it seems like the common consensus no one will admit to.
Am I dreaming or did the job cuts get worse with the bailout!
We bailout the banks and financial’s with the assurance that they will try to do better (i.e. CEO pay will be controlled and no parties). Companies take the bailout and then proceed to LAYOFF the very same people who are trying to bail them out. Seems like the banks have found their LOOP HOLE!!
Quite easily done thank you fed!!
CEO email to HR: We got our money so start laying off the american workers.
my job is secure, my company is hiring. I don’t listen to much to all the negative newscasts. I just live my life, and all is well. Remember, it is an election year and you will find out that on Nov. 5th, the news will be that this economy is doing pretty well. 94% of america is working. 85% of America was working when Carter was president. Sadly, memory of REAL RECESSION is forgotten
dito to a previous comment…the recession was localized by State and Region…Ohio headed for a recession back in 2003, made it by 2004. Held steady until gas reached $4/gal & real estate busted 2007 early 2008 & now it’s heading for a depression. WHY?
Too many ties to GM & Ford, Too many business here tied into troubled local & regional banks. The States Capitol in budget shortfall free fall, forclosure rate in the state is still climbing, & in another 12months @ this rate, Ohio will be looking to file Bankruptcy. and $1.50 gas will not solve the problem.
No, We are in a correction caused by people trying to support lifestyles way beyond their means. The fact that most Americans finance everything they have and banks are willing to allow them to do so is the root of the problem. You cannot blame Washington or those there for everything, try taking some responsibility for your own actions and irresponsible decisions as citizens and MOVE ON.
The USA was in a recession over 9 months ago…this was suppressed by the Fed’s with their insufficient stimulus checks, then last month we flew below what they would like to believe is just a recession, we are somewhere clearly south of that mark and on our way to a depression, unless our Government can get control of the Federal Reserve, which is not a Government entity…but a privately held independently controlled banking regulatory agency that reports to our Government! Paulson, Bernanke and our Congress are the ones who have created this oversight and financial mess, not the Bush administration…period.
If it walks like a duck, talks like a duck, looks like a duck….it’s a duck! Job loss every month, housing market slump continues, credit woes, QUACK, QUACK, QUACK!
Anyone who actually believes the media cause recession is a fool. The media has exactly NO effect whatsoever.
Let’s put those complicated albiet “official” definitions aside for a moment. Remember the old saying, “if it looks like a duck, and walks like a duck…it’s a duck.” OK, then, let’s agree the Quacking is deafening.
Yes and it’s going to get worse. Sorry to say it, but after years of spending freely and not saving anything for a “rainy day” – the “storm” is starting to hit. I too used to be a person that bought things I really didn’t need with money I really didn’t have. I learned my lesson! Wish now I had all the money I wasted to add to my savings! Yes, I have savings now that I’m not wasting money anymore. Recession….just wait until the Depression hits. All the younger generation especially won’t know what to do. Thank God I listened to my elders!
If a recession is an economic downturn for two or more quarters, then yes, we are in a recession. As an academic researcher in this area, we have seen unemployment increase substantially in the past two years, stock market volatility has been substantial over the past couple of years, in addition to many financial institutions failing. These are all indicators of a recession.
Whether or not the fed would like to admit it or not, these are facts of life that we are dealing with.
Now, this doesn’t mean that we should be selling off all of our investments. HOLD ONTO YOUR INVESTMENTS. The selloffs are killing the financial markets! Stop the panicking, relax, and the economy will pull through. Markets work cyclically. The markets, be it the financial markets, or real estate markets will get better.
Yes we are in a recession. And this is Big Daddy fault and he started this war and Little bush followed in his daddy footprint. Did you know that we are not American owned anymore, China and Japan has been buying up everything. All this mess is our so called Presidents fault. Not Greenspan and everyone is blaming him. He was told what to do by our President.
Sue,Hornbrook California
Let’s ask Sarah. Bet she will have some good advise. Besides we need to add some humor to the situation.
Overblown fear and greed contributes to the constant ebb and flow of human history. To be expected from such emotional creatures and it’s what makes this world so great. Think big picture people.
NO! So long as I continue to see businesses such as the new Coach Purse store open, people continue to buy their morning $5 coffees, buying Rainbow Playsystems swingsets for thousands of dollars, buying and driving their SUV’s and huge pickups….maybe the “R” word is in effect in some parts of the country, but not here. Those claiming the “D” word, are way off base. People claiming that we need to rewrite the Webster’s definition…come on. It is what it is. This was bound to happen. All this blame on the administration and the banks, when is someone going to have the backbone to blame the people who took out these RIDICULOUS mortgages, knowing darn well they could not pay them? Just because the banks tells me I can afford a $250,000 house, looking at my budget, my income, I know I can not, so I did not. those that did, SHAME ON YOU!
A recession is when your neighbor is unemployed. A depression is when you are unemployed. A deep recession happens when your unemployment compensation runs ou and there are no jobs.
I’m sitting here watching foreclosure signs go up like milkweed, the soup kitchen lines grow, and the beggars are sending more solicitations for cash than I’ve ever seen.
Yes, I believe we are in a global depression.
I recommend that we addopt the NINA approach (NO INCUMBANT NEED APPLY) when it comes to political offices.
It IS time to through the baby out with the bath water.
Just because some parts of the US are feeling the impacts of a recession does not mean the entire country is feeling it. Sure the stock markets are slumping, sure commodity prices are increasing, some industries are worse than others. BOOM and BUST make the economy work. Poor decisions have been made. The economy needs to work itself out.
1/ Does it really matter? Things are bad.
2/ We are well on are way into a depression, and beyond recession.
There is a lot of focus on the negative things happening in the economy. Granted there is a lot of negative stuff, but there are good things to report. “Doom and Gloom” sells for the media. When it is bad, we can’t get enough and tune in more. That is how they get paid. I know I’ve been glued to the TV and internet more than I have in the past two months compared to the last three years. If we were getting nothing but “Things are great!”, “The economy is at an all time high!”, or “You can’t go wrong in this market!” you wouldn’t tune in as much because you are confident that everything is going to be alright.
Watching what the analysts say and what actually happens are totally different. Most of the analysts have been wrong (barring Warren Buffett and the rest of the true experts). So why are we letting them scare us to death? They keep saying a year from now it will be better. No one has a crystal ball. Look at the disclaimers they put at the end of their programs. The truth is they don’t know what is going to happen. If we as a nation started getting back into the market now and stayed there, we might be able to recover sooner than later.
We are hurting right now. To answer the question to this blog, yes we are in a recession because no one is spending. Will we get through it? Yes we will! The length will depend on our confidence as a country.
News media, please report the good and the bad, instead of bad, bad, bad, bad, a little good, bad, bad, bad. It will hurt your ratings, but isn’t it worth it for the sake of the people?
What a dumb queation. Of course we are in a recession. No growth, the stockmarket down 40%, Massive layoffs, record forclosures, the world economy in major meltdown. I worked, saved and invested diligently until I retired early this year. Now my nestegg has shrunk almost 50%. I think heads should roll.
Of course we are in a recession. Anynone who says otherwise is most likely living in fantasy land. We have lost over 600,000 jobs growth has come to a screeching halt all due to the past 8 years of no regulation, no responsible stable growth and just complete freedom to do whatever the markets want. We need big government again but not Bush’s big government and wasteful spending!
We’re in whatever we’re told to be in. Everything from our diets to our checkbooks are determined by the media hype machine. What’s news is gospel to our impressionable mob. You say “panic” and we say “how much?”
The sky hasn’t fallen like this since Chicken Little.
It seems the corporate executives forgot how the system works. You pay people and they buys things, pay bills, etc. When you stop paying the people or the what the people are paid stagnates less money flows into the economy. Thus credit markets have less confidence in lending since they know there isn’t sufficient money being spent at retailers, etc. to pay the loans back. So it all stops. The focus should job creation!!! The American economy is based on people being employed first then spending!! A majority of don’t have millions nor hundreds of thousands of dollars to “fall back” on.
recession is an economic downturn for two or more quarters. So we are not yet in a depression for all you gloom and doom people. It is possible, but i would say we are definitely in a recession for the last couple months
This administration lied to us about the WMD’s in Iraq do you really think they would provid us all the information about the economy? Don’t be an ostrich and take your head out of the sand!! We are past the recession point and heading for the big D
Some people are unaware that many states and regions of our country have been in a recession for a long time, even though on the national level we just haven’t paid much attention. But now, since the pain is continuing to spread, the national consensus is coming around to understand that yes, we are in a recession.
Since the basis of this recession is the housing market, and that market is country wide, pain will be felt all over, and will not abate until the troubled mortgages are resolved.
In my own case, I no longer had a troubled mortgage…but then with the continuing troubles of foreclosures, the value of my property has and continues to fall. Now, why would I continue to pay on my property when it has lost every dollar I’ve put into it…and then some (well over 100 thousand dollars), and the bottom is not in sight. I can’t even sell this place to get out from under it.
What would you do?
The stock market has not been a fare measurment of the economy for a very long time. It is a huge “monopoly” game for day traders and speculators. I believe we should quit worrying about what to call it and start living within our means, and so should the government! Don’t spend more than you make, what a concept. No more stealing from programs like social security, with no intentions of ever returning the money. Our government officials are really arogantly pathetic!!!!
If the Stock Market goes any lower, I may be able to afford buying up all of America.
This is the start of Great Depression 2.0 as pointed out on several LinkToMeet.com blogs.
Thank all those who paid over $300K to buy a home with less than 20% down. They all belong in the street, due to their greed! It’s payback time. Wake up America!
I’m with Keith in getting ready, begin to prepare. But bulk food that is easily stored for long periods of time, I for one will be planting a “Freedom Garden” in the spring to grow my own food. If history is an lesson it will be the farmers who will suffer the most under either of the two major parties tax plans. When the farmers go belly up, food will become very expensive and rare.
“I’m mad as hell and I’m not going to take this anymore”!
Vote them out, let them collect unenjoyment!
Vote for your freedom and Liberty Vote Bob Barr
Why is a label necessary? The market is down today because the “world has recession fears” – was the world sleeping? You, CNN, and the media create this hysteria!!! All this hysteria has left trillions of dollars on the sidelines – yeah, that’s really helps the economy – just stick it under your mattress, go to sleep, and maybe when you wake up it will all be a dream. Wake up and stop waiting for the government to take care of it.
Pulling out of Recession on way to Depression. Credit ponzi scheme is imploding. banks are borrowing around $105B a day from FED, up 5% or so from last week. Its imploding but everyone’s saying “ITS NOT A RECESSION. KEEP YOUR MONEY IN THE STOCK MARKET”. We’ve had our house on the market for a year now with no offers! Our sign says “Make Offer” and has no price on it!
Land to earth american people. You are still asking If we are in a recession? let me tell you we have been in a recession for the last 2 years, and correct me if I am wrong but to me this is a Depression.
We have been in a recession for the past year. Wall Street feels that if we are talking about whether we are or are not that it will have an even greater effect the eceonmy. It really doesn’t matter at this point.
We have dug a very deep hole for ourselves to get out of, but we can get ourselves out of this mess if we unite as an American people and stop looking for blame for who did and work together and provide solutions to our problems.
We’re in a recession and it doesn’t help to hear that this is a garden-variety bear market. The market is only reacting to the lack of confidence that people have in the leadership in Washington & Wall St. On top of that, you have the credit clog, bailouts, a worldwide slowdown and most importantly, the housing crisis with lowers home values and promotes home foreclosures. Ultimately, our markets will rise but only when the housing crisis has bottomed and that is the rub, because no one knows when that will be and what shape the American people will be in, by the time that occurs.
Recession…definitely. Depression, more than likely.
Cleveland has had all the foreclosure problems years prior to what the rest of the country is experiencing now. Nobody paid attention then, even though some in Ohio government rang the alarm at the end of the 90’s. Things are not getting better yet here, so I expect them to stay worse everywhere else.
Wrong question? We have been in a recession for over a year. The administration is in a state of denial. Now the question is: Are we in a depression?
We might be headed for a recession, but we definitely are in a Bear Market. Tight money, threat of increased taxes, political unrest, and pending elections all have a negative effect on the stock market. Whenever we bind our emotions to the stock market, a bear market feels like a recession. In reality, the economic growth has slowed, but not enough to reflect the dramatic drop in the stock market. 10 years from now we will be laughing about 2008, and those that BUY instead of SELL will look like geniuses. (Only buy if you can live without the money for at least 5 years.)
I’m not sure this is the right question. It’s true, we haven’t technically had a recession, but the reasons that we fear a recession are all happening. Massive job layoffs, a bear stock market, major companies failing, global economic concerns, people unable to make their mortgage payments, postponing retirement, etc., etc., etc. Whether we’re in a recession or not, the overall economic picture isn’t bright.
For those of us that have been laid off from a good paying job, it feels like a recession. To go back to college and then still not be able to find a good job, yes it certainly FEELS like a RECESSION. To see that 90% of anything that is manufactured in China used to be made in the U.S., it feels like a recession. We used to have those jobs. I think most of us get it. Recession!
For all you idiots who keep saying that to be in a recession you need 2 consecutive quarters of blah blah blah…Those methods of determining recession have been obsolete for quite some time now. But you can read. Good Job!
For the people that say we’re no in a recession and that the GDP hasn’t been negative, do you honestly think the government numbers are real? Honestly they take so much stuff out of the GDP when calculating it. It’s all fake, the government is lying to us. Prepare for something much worse than a recession.
We have been in a recession for months now. I have included the dictonary’s explaination of both Recession and Depression. Recession is just part of the healthy economic cycle. It is definatly not the most fun, but in order for our and the world economy to take off again, it needs to complete this portion of the cycle. The longer it takes for people to ignore the signs (rising prices, loss of jobs, market decline….etc) the longer and more painful it makes it. I would not be suprised if we have a small depression on our hands in a few short period of time. The FEDs should have gone to the banks a year ago and held them responsible for the mess they themselves created. Banks that offered subprime mortgages should have been asked to go back to those they were planning on evicting and attempt to work with them. Foreclosure has been at a point when a bank forcloses on people not paying…they get no money either because the house does not sell. yeah they are going to loose their butts on a deal, but some money is better then no money for a bank, allowing americans to get back on track with their lives.
Recession
Economics. a period of an economic contraction, sometimes limited in scope or duration.
Depression
Economics. a period during which business, employment, and stock-market values decline severely or remain at a very low level of activity.
Do I think we are in a recession? Of course, silly. I think the real question is, “Do you think we’re going to have a depression?” What happens when the states run out of welfare money and unemployment money? People will begin to starve. That’s a depression. Do you think California governor Arnold Shwartzenegger (sorry if I haven’t spelled that right) is kidding when he says there’s a serious financial shortfall? I don’t think so.
We have been in a recession for some time. Based on accounting procedure that has already occurred. Why they did not come out an admit it is because of the stock market. The did not want main street to be scared and begin selling off stocks and push us into a depression. If the bailout does not work that is where we are headed. If the last two week are any indication of the direction of the market we will be there shortly. It has nothing to do with the media. It is standard accounting and business procedures. If you spend more than you have you are going to go bankrupt.
One more log to throw on the fire: these unemployment numbers do not reflect the millions of undocumented workers- many of whom have been under-employed for years.
Shhhhhhhhhhh be silent this really isn’t happening. Yep put your head in the sand thats what we should do. Heck we have been doing it so well and look where its gotten us.
WE ARE NOT IN A RECESSION!!!!! PLEASE NOTE THAT TO BE IN A RECESSION YOU HAVE TO HAVE TWO CONSECUTIVE QUARTERS OF NEGATIVE GDP. WE HAVE NOT EVEN HAD ONE. THE MEDIA NEEDS TO STOP THROWING WORDS AROUND AND REPORT THE TRUTH.
I believe that for the most part, Economists cant define Depression from Recession anymore from the simple fact that we live in a Global World.
Internet, Online News, Emails, etc.
For this simple fact the Boom and Bust theory of Capitalism has changed dramatically. The theory however has not changed in Principle, but in Actuality.
The depression of the 30’s and other various recessions that followed are all governed by the different states & situations of there time.
So by that alone, every time a recession, depression, or deflation occurs there is a different template and a different outcome.
All that is certain right now is that for the last 5 years we were inflating (Boom) and now the economy is slowing and deflating (Bust).
With all that I have said how can we know where we are heading? There are too many variables. Lets see where the next couple of years take us, then we will know where we are heading.
Maybe WW3? Maybe Star Treck? Who knows…
For those of you have not studied economics; A recession is two quarters of a Negative value of GDP. The U.S. Is still growing at 1%… that is a positive growth of GDP. Please remember that there has to be two consecutive quarters of negative GDP – we have not even had one yet.
I think we are in a state of panic which leads to recession. Everyone need to stop panicking and complaining and get busy working! Capitialism does work.
We have been heading downhill into this recession for years. Anyone who was paying attention could see it coming. We sold our house three years ago and the people who bought it paid about $15,000 over the asking price to get the financing. We got none of that and I can guess who did. We had no control over this; it was their decision, but we knew then what was coming. There were many signs that the “man on the street” could see and most of our friends were aware years ago that this bubble was a bubble. Blame the media? Yeah. And global warming is a myth too. I don’t think so.
So a recession can be definitively identified by popular consensus among CNN.com readers? Interesting.
Yes, we are in a recession. This much loss with this much fear has created a recession.
Until the housing stabilizes, not much will happen for the better. The credit freeze appears to be getting somewhat better as well as sales of existing homes.
We will get through this but it’ll be tough to make much money until the fear eases and housing gets on the move.
We’ve been in a recession for YEARS – but a different kind of recession. Not one based on unemployment but stagnant wages, declining benefits and downard mobility. But because so much money has been sloshing around on Wall Street the recession in the “real” ecnonomy (main street) has been hidden. Wall Street has been making lots of money for the last 8 years, but no one else has.
GDP is a horrid indication of the economy’s health in the first place so it hardly matters whether the textbook definition of “recession” is met. The Fed can (and has been) printing gargantuan sums of money which means that there are more dollars to spend, which translates into a higher reported GDP. Any GDP growth is purely fictitious at this point, as was the booming stock market of the late 1990s and the housing boom of the early 2000s.
Right now, the market is sorting through all of the BAD investments that were made by people and companies who were lured by artificially low interest rates. Printing money to artificially prop up BAD investments prolongs the inevitable correction at the expense of each and every citizen who holds any cash.
Furthermore, I’ve seen a few comments about DEFLATION. First of all, inflation and deflation are the EFFECTS of the Fed’s monetary policy, not the CAUSES of booms and busts. Deflation might sound like a nasty word to some people, but to those of us who have saved money and have built genuine wealth based on that saving, price deflation simply means my dollars will purchase more. Even if you have NO savings at all, which would you rather have: no job and HIGH prices for goods and services, or no job and LOW prices for goods and services?
And to anyone trying to blame this fiasco on the free market, I highly recommend you read the works of Mises, Rothbard, Hayek, and Reisman. We have over 75,000 pages of regulations strangling commerce. If that’s what you call laissez faire, then I’d hate to see what you call a command economy.
So yes, we’re in a recession, a depression, a panic, a crisis, a downturn, a slowdown, etc. Enough with the political euphemisms! They all mean the same thing: the government has tried to pick winners and losers in the market and the market has other ideas.
END THE FED
I think we are passed that. I know they call this more like a “19th Century Recession” but I’d like to go back and read what actually happened back then. I think we are in between a RECESSION and a DEPRESSION. I don’t think we will actually see our economy and nation go into a DEPRESSION, but I think we will come very close like we are now.
More people are losing thier jobs. Taking pay cuts. Losing benefits. No one wants to buy now because they are afraid of what is coming down the pike.
One cannot trust the politicians because getting “into office” or getting re-elected into office is more important than what is at stake. No politician is willing to come forth with a good or better plan for fear losing votes from some folks.
Greenspan warned of this and FNMA 3 or 4 years ago. The HOUSE wouldn’t and didn’t listen. Shame on them! They should be fired and replaced as ridiculous as it sounds……..they are running a darn country here with people’s livelihoods at stake. Not some small company. Had they been at a small company, they would have either been out of business or fired.
However, the system will not change. So I guess we all have to ’suck it up’ and do the best with what these companies and some memebers of our HOUSE put us in. They get paychecks and a pension at the end of the day, so what do they care?
Yes, and unemployment is way higher than the government says, but they only count those receiving unemployment benefits, not people who are unemployed without receiving benefits, or those who get bumped off the unemployment because they are unemployed too long.
Why bother commenting, the CNN sensors do not what to really report how the people feel. After all who cares about the people anyway?
Vote for your Freedom and Liberty this Election day Vote Bob Barr!
Hey CNN why don’t you support the people in the quest for the return of responsible Government?
I’ve said this before, and I will say it again… it doesn’t matter if it’s officially a recession or not. The economy is bad. We could never go into an official recession, but that still doesn’t change the fact that people have lost jobs, the consumer has lost purchasing power, and we are in a deep pile of doo-doo.
We’ve been in recession since December of 2007. The GDP numbers are bogus; they have used inaccurate price deflators and have over stated incomes. Unemployment measured as U-6 (counting discouraged workers) was 11.3% in September. The reported job losses have under stated reality by factoring in unreliable birth/death adjustments.
Congratulations, you people in the media have succeeded at talking this nation into economic turmoil. All of your incessant chatter only serves to make a difficult situation worse. For the benefit of the country why don’t you just be quiet.
It is CLEAR and OBVIOUS that we are in a recession and a total shame that our government just won’t say it. Whether republican or democrat, not either one of them is going to be able to fix our problems. Stop sending our jobs over-seas so our people can have a job and afford their homes! Washington get with it!
Wish I could say this was the fault of all hype from the media about doom and gloom. I have watched plants in my area close year after year. Watched signs on local business go up for sale. Saw foreclosure signs pop up everywhere. This is not hype from the media people this is truly happening. Don’t know about you but I am watching my pennies and getting my affairs in order for a rainy day.
This is a rhetorical question correct? If not, we have been in a recession for 4-6 months already with the only thing to be decided is how deep and how long it is going to be. I look at local economies with regard to my job and I am seeing a significant amount of retrenchment with manufacturers and other businesses. The smart ones are avoiding credit, cutting non-essential staff and services and hanging on as tight as they can.
What a question to ask! Unemployment going up daily,daily we hear of more companies cutting jobs, bail outs all over the place. And no help for the struggling middle class. But it’s not official until we get the official word it is a recession. So is there really any need to ask this question, only the blind will say nope no recession
The only people that dont think there is a recession is the gov’t and the fed. They are more interested in image then the truth. Michigan been in one for along time. Unemployment numbers are all bull. Most poeple have run out of unemployment benifits more than a year ago and are below the radar. The local gov’t is rasing property taxs as home values fall. Result more empty houses. The bottom line is the jobs went over seas and even if you have a job it wont pay enought to get you to work every day. Our gov’t sold us out.
Are we in a repression? not any more its a depression in michigan.
As the saying goes…”When your neighbor is out of work it is called a recession. When you are out of work it is called a depression.”
“And to you, the media….stop being so gloom and doom!”
Yes and I will be happy to buy all the stocks and bonds and merchandise you want me to buy with all the money I don’t have.
Oh wait… thats how we got here…
My husband is on disability and I lost my job in the mortgage business in March. I can’t find a job that will even pay for the gas to get there. We also have a college student who had to give up full time because we can’t afford it. OH YEAH-DEPRESSION IS HERE ALL RIGHT!!!
Washington has none that we were in a recession for a long time now. They don’t want to admit because people would stop spending so much money and start paying off their debt, which would slow the economy even more. We need to just admit we (including the gov) spent too much money and it is time to pay the bills and live in our means for a while.
I will be losing my job in about five weeks…..that makes it a depression for me already. A weak Christmas shopping season and sharply reduced government revenue in 2009 are foregone conclusions. There is no way we can avoid a deep recession lasting more than a year.
Yes, we most definately are in a recession and have been for some time. Are you waiting for someone ‘official’ to tell you? If so, which one of our government officials would you trust right now?
The media is contributing to the fear. People are afraid to spend; they are selling stocks. Warren Buffet said to be greedy when people are afraid and be afraid when people are greedy. We should have been more fearful when people were getting mortgages without proof of income, etc. We are in a time of turmoil which will turn around if people don’t try to over correct their individual situations. And to you, the media….stop being so gloom and doom!
Recession Vs. Depression
http://economics.about.com/cs/businesscycles/a/depressions.htm
Deflation, yes. Recession, I’m not so sure. A deflation in stocks, housing costs, gas prices and, soon, food prices: all way overdue. Deflation’s silver lining is laying the foundation for affordability which will spur future economic growth. If there’s a recession it appears to affect, like all recessions, only certain economic sectors and certain geographic areas. The stock market indicates nothing more than rampant fear and short selling, not a recession.
Probably, but I’m buying stocks. I know the market will go lower before it gets better, but I can’t miss out on these cheap prices.
I posted a remark saying that this was a crazy question but they pulled my comments. So I will try again. This is not just any average recession, this has all of the makings of becoming a DEPRESSION. And the policies being promoted by our politicians will only make it worse and much longer.
Yes we are definitely in a recession. And I feel it started when Pres. Bush got into office. I also think we could be headed for a depression.
“We” are on the cusp of a depression, a worldwide economic Depression. Deflation HAS set in, massive unemployment will soon follow as pressure on prices intensifies and that pressure is transferred by the capitalist system onto the backs of working people. This is the inherent workings of the capitalist system—boom followed by bust, followed by social upheaval and advancing toward war between rival capitalist countries. This has been coming since the late 60s, early 70s when the post-WWII met its limits. The markets were glutted, and the only way to maintain profit levels was to cut wages and benefits, inevitably further shrinking the market. Speculation and debt growth became a means to accumulate massive but fictional profits, stretching claims on income into the future like a giant rubber-band. The rubber-band has met its limits. Snap.
We have been in a recession for 4 months it takes time for federal data to catch up to main street. Now we just need to fix it before it ends up in a depression.
By definition, we are not yet in a recession. Global panic has been sparked by the media but now is a perfect time to buy stocks at discount prices!!
“If our media would just stop scaring the hell out everyone, people would not be losing jobs”
Yes because wishing things away and sweeping them under the carpet is actually much better than facing reality. Yes if I believe that the 65% of my IRA thats gone is really still there I will feel alot better.
Theres no place like home, theres no place like home.
Of course – it’s a market bio- rhythm….like inhaling and exhaling. Warren Buffett expects the exhaling to begin most any time now! Could take another year before the housing market begins to show real signs of recovery…
Yes, but nobody seems to remember what recessions are like. Unemployment during the Great Depression was > 30%. Today it is less than 10% and everybody loves to vent about how hard they have it. This is still the greatest country on Earth. Remember?
Does the Pope ride in the Popemobile? Yeah, we’re in a recession. A pretty nasty one, too. The real question is: just how severe will it get and how long will it last? I’m not optimistic. I’m doing what the banks are doing: hoarding cash.
Yes, and this recession is now over a year long. Lets look at GNP and the markets…. all in a ‘down hill slide’.
With oil, gold and silver losing value. we could get deflation which could cause a depression.
Its just a matter of time until someone really admits it.
The truth is that we are already in recession in some countries and there are a lot of experts saying it for a long time. Hard to admit, but true.
In the US, it will be a question of time, until the government admits it.
The economy is tanking, and is the worst since the great depression. This thing is going to get very nasty. Are we in a recession? The question should really be how bad is this depression going to be?
I dont think we are in a recession. The flow of money has been choked. This probelm is fixable, so I would say we are in a technical recession induced by structural problems and not by demand of goods and services. Pile up more debt and keep people from killing each other- thats what the system is all about in the end.
Ya think?? We are in a recession to be sure and things will get worse before they get better! Hang on!
Duh!!! The middle class, those of us that make the world go round KNOW that we have been in a recession for some time. We dont want\need to wait for the losers in Washington to formally announce it………..because they never will. They are the very incompetent people that got us here in the first place.
Yes, but I beleive it is worse and I cannot beleive that it hasn’t been officially called a recession. In Wilmington, where I live, a large Ford dealership has closed one of its lots and 5 restaurants have gone out of business since August. My Mother is a Real Estte Broker and a few of the other agents in her office have left to go find work elsewhere because they are not selling houses. Also everyone in her office has taken a 10% pay cut this year. I am an optimist and I do beleive that we will get through this. Regards, Carlos.
the question isn’t whether we are in a recession,
its how far we are in one,
with jobs contracting, prices increasing, and consumer spending decreasing,
the question is exactly where we are in it
In business the saying is that you cant manage what you cant measure. It seems that politicians and economists all have different definitions of what is a recession, which is handy depending on what side of the aisle you are on. The side of the aisle I am on is in at the very least a recession. I think we should all push congress to tell AIG no more money and send all of us to the spa instead. I am glad I own 70% of that company with my tax dollars, looks like a good investment to me!
I think we are in a recession but for my personal finances it seems as though the tougher things get for businesses and the lower gas prices fall the greater amount of disposable income I have. Go figure.
No.
This is certainly a historic time in the fiancial markets but the stock market fears are being fanned by a obama loving media causing folks to panic. If this wasn’t an election year the drop in stock values would have been much less and thus the entire “recession” question would be irrelevant.
Yes, Yes , Yes, I dont care what the experts say. Just look at the financial side of this country and how many companies are going under. Look at how much debt this country has, its crazy, we as individuals wouldn’t be able to make it financially if we were as backwards as this country is financially.
Clearly. What started months ago with rapidly declining housing sales, then bank and other financial failures, has lead to today’s complete global melt-down. While some people might not see it right now (as hard as that may be to believe), we’re at the start of what will definitely be considered a recession when we look back at this period of time 5 years down the road.
If our media would just stop scaring the hell out everyone, people would not be losing jobs. People are afraid of going out and spending some money. The problem with our country at the moment is that these politians lie, steal and paint the pictures much more then it real is! Get smart people!!! Don’t let these egomantiacs destroy our country!
This is not much of a question; no one with any credibility is saying we are not in a recession. It is obvious.
I don’t know what the actual metric is that says recession but with the recent job losses and general state of the economy, if we’re not in a recession we soon will be.
DOW have fallen 6000 from the high over the last year… Home prices have fallen drastically across the country. Retirement accounts, etc are being depleted… who cares if Mr. Bernanke refuses to call it a recession.
We are facing a huge crisis. I wasnt alive the the last time the Feds had to pump this much money to prop the system up. If the problem wasn’t as bad as it is, good ole Ben would called this a “minor recession under control” long ago and we would be moving on.
What do you think??
I don’t think we are in a recession, I know we are…
If you believe what the government is telling you, your in for a “RUDE” awakening.
In fact let me go one further onthat note…
Brace yourselves,…WE… Are…In..A
—– Depression ————-
Whoa, hold me up Martha, here comes the big one..
what a stupid question…
we have been for a while. It was never called because the Bush Administration has been presenting (manipulating) info to show more postive numbers until the election. My guess we will start to hear all the bad news over the next month or so after the election.
I’m no economist, but how can “the greatest financial crisis since the great depression” be seen as anything short of a recession? My neighbor in a similar industry just lost his job, that’s main street lingo for a recession. If I lose mine I’ll downgrade it to a depression. If anyone can show evidence of quarter over quarter GDP growth in this economy, I want some of what they’re smoking.
Absolutely. What makes up the GDP lately? They take out so many items everytime I hear the news (disclaimer at the end such as excludes oil, personal services, etc), the GDP they report is healthy isn’t the GDP average american sees. I believe childcare expenses have increased 85% in the five years. Where the heck is that accounted for?
Is this a serious question?
While your at it, do you know your own name?
We have been in a recession for quite some time and are probably very close to a depression. Hopefully that will not proceed to occur.
Do you even need to ask the question? Of course we’re in a recession if not worse. Some of the top economists are saying that this is the worst time since the Great Depression, but yet we’re not in a recession. If that’s not an oxymoron I don’t know what is. The Government numbers are fake!
Vietnam wasn’t declared an “official” war so does it really matter or hurt any less if it’s not labeled “official”?!?
No offense, but this isn’t even a worthy question…anyone in their right might would say yes. Even those in their wrong mind would probably have a consensus of yes as well. While we may not have hit the “clinical definition” of recession, all you need to do is drive down most streets and look for the for-sale signs or foclosure signs, or check out the lack of shoppers in the stores, etc. It is quite clear and anyone not seeing this white elephant in their livingroom is not worthy of talking economics. Sorry for the double-negative. 
Recession yes we are,forget stock market,banks etc the people with no homes,bills mounting gas prices,food small and large buisness empty all over thats going down,,
I think it is easy to say that we are because our assesment basically is driven by the trend in media reports. However, whether the economy meets the criteria for recession is not yet clear.
Certainly, on a micro-scale, there is recession.
I am in the transportation business and I think we have been in a recession for 18 months and no one will admit to it. I will not get any better until the market faces it and energy prices get back to resonable levels. The consumer has been ripped off by everone involved in price setting for as long as they can stand it. I hope they have socked away their profits, because they will never be able to do this again.
Yes we are already in a recession. WHY all of a sudden should this be a surprise to Wall Street, etc.? Stocks should have already factored this in especially on top of credit crisis.
Each time there has been a spike in energy prices, a recession has followed ( 1973-1974, 1979-1980, 2001-2002 ). This time is no different except the banking/credit crisis has compounded the problem.
We are in recession! It is not a panic talk but, often the technical recession where numbers show that we are in really recession lags couple month behind the real life. Where people start to cut back on spending, inventory build up at stores cut back on factory order and factory cutting back to reduce inventories, etc… By the time technical numbers show we are in recession, we have already took blunt of the economic woos.
yes- just in the beginng stages-i operate a web based business http://www.nutrition2000info.com (to help men with prostate cancer)for many yrs and saw this down turn beginning aprox- 09/06–i project the stock market will fall down between 6500 and 7100–but that is ok- the gov,t will bail us out-ha ha
Can a bird fly, yes we are in one and it is a bad one. I look for it to continue until 2nd quarter 2009. If the Fed would have reduced interest rates back in Aug 2007 it would have been a mild one and over by now. It is all tied to housing and retail.
What! we can’t think or see or understand anymore without an “official” report. Yes we are in a recession and it will be deep and long. Someone has to pay for the excesses of the past years and now it is time.
The Government just don’t want to hear this ugly word before the end of the term and the candidates just not want to use that word before the elections…
Yes, we are in a recession and quickly heading for a depression. Look at the failure of the banks and the much lower stock market.
The state of Arizona’s revenue is down over 20%. Cities and local governments are in trouble and are laying off employees. Unemployment is sky rocketing.
It is a severe economic downturn that is going to last for years.
It’s almost irrelevant at this point. What we call it is just a technicality. Yes, we’re in a recession. And to be honest, I think we could all use a little lesson in living our lives a bit more efficiently. Hopefully we’re learning something. But these massive market sell offs are a major overreaction to fear that is perpetuated by the media. Yes, things are bad right now. But we’ve been here before and we’ll get out of it again just like we always have. Now that things are down so much, is NOT the time to be selling.
ALL THE LIBS think we are in RECESSION…ALL the MAINSTREAM MEDIA THINKS we are in RECESSION……I REMEMBER during the CLINTON years that the UNEMPLOYMENT RATE was above 6%…was there a RECESSION THEN ?…..SOOO..I think if the MARKETS start to straighten out ..bailut money take affect more and more …investors will see better times…..BUY NOW
No.
We are in a depression.
It is comical that people are debating a recession. Yeah, we WISH we in just a recession.
We have been in a recession for 3 months now. We need to spend less time putting it off and more time dealing with the fact. How can people talk about issues last seen during the Great Depression, and not realize we’re in a recession.
I can only comment on myself. I have been in a recession for the past year. so yes we are in a recession
Recession or not, that isnt important.
We in a deflationary environment.
Dollar supply in circulation is shrinking. Asset values going down. Wages will be going down. Cost of gold and oil going down. This is classic deflation.
Lending trillions to banks, to sit in a vault, wont help. Lending money to companies to stockpile wont reflate. The only thing that matters is money in circulation. And credit destruction is far outpacing any growth of the money in circulation.
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Don’t use the “official” unemployment numbers. It leaves out too much information: people who have stopped looking, people who haven’t applied for unemployment, people who are underemployed — using an underemployed index from the Economic Policy Institute, we are closer to 15%. But with announcements for 20,000 layoffs last week alone, I would think we’re already past that. One other thing as a personal observation: posters who use insults to make an alleged point generally know less than those who don’t.