Recession. . . . . is it happening now?

Question

Recession. . . . . is it happening now?

Answer 1

Technically no.  A recession is defined as two consecutive quarters of negative economic growth.  According to the official numbers, we have not had a single quarter of negative economic growth but our rate of growth has slowed significantly.

Truth be told, our rapid growth in the past was largely driven by people spending money they didn't have.  Now the bills have caught up with them.  For several years. people have been borrowing money for homes they really did not have the means to pay for.  Qualifying for a loan is NOT the same as being able to afford the loan.  Now, the bills are coming due and people just don't have the cash to cover what they promised.  This causes them to cut back on their spending because they now have to pay cash instead of using the credit card.  Fewer sales hurt the businesses which hire fewer people or lay off existing employees who in turn won't be able to pay their bills.......it's a big circle.

Answer 2

no