How long will the recession last and how much worse can it get?

Question

How long will the recession last and how much worse can it get?

Answer 1

The worst is yet to come . Get prepared and hunker down .

Answer 2

ummm i remember about 12 months ago people were saying the recession was going to be short lived. Finance houses would write off their losses. There would be adjustments in the market. Everything would re-balance and everything would be fine with the magic capitalist machine.

well the finance houses keep writing more and more losses... the rebalancing hasn't finished yet and we're yet to feel the secondary and other knock on effects of the mortgage crisis. Wait for collapse in retail and construction employment.

i think a new problem that wasn't there a year ago is that food and oil price is causing major price inflation globally. I think this a new challenge that will cause economic instability in countries like India and China, which will affect western economies.

I think the challenges to global growth have not ended.... I don't see any major new technologies that will deliver major new growth areas...

Answer 3

i thought a reccesion was 2 quarters of negitive growth...

nope... hasn't happened, the last few quarters have been growth in the market

Answer 4

As far as a recession is concerned, we're doing GREAT by a long-shot comparison.

1.  We have a LOW rate of unemployment percentagewise compared to the nations in the EU.  We have about a five percent rate, while looking at Germany's 10 percent, or other similar figures, we're doing better.  We're even better than the 1930s, where we had close to 25 percent, and had the massive job market of a WORLD WAR II to get ourselves out of it.

2.  We have CHEAP gas prices.  If you look at Europe, with their prices, by unit conversion, they have to pay 10-12 of our dollars for one gallon of their gas.  This is hurting their food prices, given that they still use trucks and buses.

3.  We will have similar rates of unemployment in the near future, we mostly need to keep them at a minimum.  We also should learn from the dot-com crash, that if you want to start a business, rules of supply and demand still apply, and the domain for sales is not unlimited.

4.  Our current recession could last much longer or much shorter-It depends on how much increase, versus a decrease, in national self-sustenance,(i.e. producing more of our own goods), that we can get.  More internal production is better for our nation, both economically (reducing national debt) and in terms of employment (People who live here in the nation will be able to get paid jobs)

Answer 5

years and much

Answer 6

The economists are saying we won't see signs of recovery until the middle of 2009, and that might be optimistic. It will get worse before it gets better, but no one knows how bad it will get. The weather in the past few weeks (tornadoes and flooding) is not going to help things. That will all impact the economy. When you have something like that happen, there is always a ripple effect. The floods ruin the corn fields so that corn fed to animals costs the ranchers and farmers more, then we pay more for beef and pork (as well as corn). Corn is used in a lot of products.

Trucks may have to alter their routes to avoid the flooded areas, adding miles and cost to their trips. That too can be passed on to the consumer.

Of course, when the water recedes there will be money spent on contruction to repair and rebuild houses and businesses so this could actually help a few people find jobs or make some money.

Answer 7

This will be the mother of all recession, and close to a depression.  I don't think we will hit a full depression, but a very harsh recession.

1- Our unemployment is much higher than the stats suggests because we no longer factor people who are out of work UNLESS they are on unemployment.  But there are unemployed people who are not on unemployment.

2- Highest debt to equity ration since 1945.

3 - Inflation is much higher than the *new* figures report because gas and food are no longer put into the inflation figures, so we are being lied to.

4- Real Estate prices are declining faster than any other time other than the depression.

5- Personal debt is the highest since the depression.  

6- Our financial institutions are at very high risk.

7- Foreclosures are the highest since the depression.

8- personal bankruptcies are skyrocketing.  

Do a small google study and you will see that we are in a lot of hot water.