What exactly happens during a recession?

Question

and how does it affect a normal family ??

Answer 1

'what exactly happens during a recession?'

Your forehead gets bigger...lol

Answer 2

Interest rates usually go up making mortgages etc higher and harder to pay. inflation rockets. Prices on everything on the shelf goes up making everyday living harder. House prices generally plummet because people are not buying because of mortgage rates leaving many in negative equity.

Although no one will come out and say it. We are in recession at the moment and I predict over the coiming year or so the BOE will be putting the base interest rates up and up to try and combat inflation and the recession will get deeper. Give it 2-4 years and we'll start coming up the other side, by that time though the debt will be massive in this country.

When labour are kicked out things will improve!

Answer 3

Depression.  The last one in the 20's had bread lines where the starving got a loaf of bread.  This one won't be as nice, as mean republicans won't even give them a loaf of bread. BTW:  A picture of a masochistic stripper doesn't generate respect for you. I have reported this as a community violation of decency.

Answer 4

d country's gdp comes down.d corporates strts sffrin.family expnses go up du 2 nflaton.de hav 2 ct down n svrl thngs.

Answer 5

A recession may involve simultaneous declines in coincident measures of overall economic activity such as employment, investment, and corporate profits.

They normally mean higher unemployment as companies start to fail. Generally people get through them by tightening their belt.

Answer 6

People lose their jobs.

Things like cars drop in value as do houses.

You cannot borrow money.

Shops put up their prices short term, then when they cannot sell drop prices.

On top of this we have rising fuel whice will accellerate the recession.

So a normal family will have less money.

Answer 7

they was a baby crying it was hungry

people stole what they could

the price of living went up about the means of them on low wage to live or them out of work

businesses closed

company's went bust

it was hard times

the people went mad

they rioted in the streets

they was desperate

it was a horrible time

no one was safe

a woman was naked and wet in the sun shine

the government was scared the public wanted them dead

we never recovered fully

and here we are about to hit another one

Answer 8

People lose jobs, house prices fall, people go into negative equity/bankrupt, prices go up.

Answer 9

First and foremost, economic downturns instill anxiety. Almost no one is immune. Even people who are doing OK themselves will tread more cautiously as they see their peers cutting back on their spending or worrying about losing their jobs.  What's more, in this particular recession, even households with secure incomes will have reason to be on edge. Energy and food prices are likely to remain quite high, while the housing crisis is diminishing almost everyone's net worth. So expect even those who aren't really feeling a lot of pain to act as if they are.

Frugality is standard operating procedure. Every downturn prompts serious belt-tightening--each according to his or her means and emotional needs. From holding on to a car a few extra months to eating out less frequently to buying cheaper cuts of meat, marketers should expect cost to be a bigger part of every consumer decision.

Sometimes the savings are material. Other times, corners get cut just to give people the warm feeling that they're being responsible and in control.  Pragmatism and escapism are not mutually exclusive. Put another way, fiscal sobriety doesn't always mean literal sobriety. Consumers who are feeling deprived often seek solace in affordable entertainment alternatives. Beer, liquor, movies and home entertainment tend to do well in hard times.

Self-image matters. People who are struggling don't want it to show. They will make trade-offs, so they can afford to keep up appearances.  On the flip side, people who are unaffected by the downturn don't want to rub it in other people's faces. Some significant number of consumers will be uncomfortable flagrantly flaunting their disposable income.  

No matter what the economic climate, the well-off buy what they want and downscale consumers buy what they need (or can afford).

Answer 10

My house has fallen in price by about 20% in the last 8 months, I was hoping to sell and buy a property abroad and have some money to live on, that is looking less and less likely now..we are having to pull in the reigns in terms of food shopping as everything has gotten so d**n expensive, I have turned to buying shop own brands whereas before I would happily pay for the premium brand.

Credit cards have got very expensive but its a catch twenty two situation as you have less money to clear them off each month, I may cut mine up.