What is our economy headed for right now?... Recession, Depression, or total collapse?

Question

I think that at the very least we are entering into what will be a deep recession.

I hope I am wrong!

What do you think?

Answer 1

None of the above. Although many media outlets are currently proclaiming a recession is in effect, the economy hasn't had a single quarter of negative growth. (You have to have 2 consecutive negative quarters to meet the criteria for a recession.) The economy is slowing but it is still growing.

Unemployment is in pretty good shape. 5.5% I believe? Unemployment during the Great Depression was almost 30%.

Much of the hysteria about the economy is driven by fear. And, typically, whenever politicians try to help they tend to make things worse because they try to offer short-term (within election cycle) help to problems that require long-term solutions. In fact, there are those that argue that Congress' actions in the 90's, requiring mortgage lenders to ease requirements for obtaining loans, helped create the current foreclosure hysteria.

Answer 2

I heard that is a deep recession.

It's bad and I hope that everything gets

better with our economy... Considering the fact

there are NO jobs out there at the moment...

Gah I need one... I shouldn't have quit mine lol

Answer 3

It is possible we could be entering into a recession but we aren't there yet. A recession is defined as:

A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Q: The financial press often states the definition of a recession as two consecutive quarters of decline in real GDP. How does that relate to the NBER's recession dating procedure?

A:: Most of the recessions identified by our procedures do consist of two or more quarters of declining real GDP, but not all of them. According to current data for 2001, the present recession falls into the general pattern, with three consecutive quarters of decline. Our procedure differs from the two-quarter rule in a number of ways. First, we consider the depth as well as the duration of the decline in economic activity. Recall that our definition includes the phrase, "a significant decline in economic activity." Second, we use a broader array of indicators than just real GDP. One reason for this is that the GDP data are subject to considerable revision. Third, we use monthly indicators to arrive at a monthly chronology.

The numbers just came out from last quater and we had 2% growth...granted very small growth but not negative.

Answer 4

Give me a break!

This is just a normal pre election down tick!

It happened in March of 2000 at the end of the Clinton era also, and many previous elections.

Stop believing the news media they are part of the problem!

My parents went through a depression, when banks, savings and loans, and the stock market all crashed around the country.

We have isolated cases of banks closing and NONE of the depositors of those banks have lost a penny. Can you say FDIC protection up to $ 100,000 deposited.

Answer 5

The way things are going now, I fear another Depression followed by total collapse. I hope things pick up soon. Where I live now in the States, our state is already suffering a deep recession -- massive layoffs and home foreclosures.

Answer 6

We are entering a period of time where there will be AMAZING opportunity for those who realize that things really aren't all that bad, and that there is nothing inherently "evil" about profiting from people who (against the evidence) have convinced themselves the world is coming to an end.  

The only people who might really suffer badly over the next 12-24 months are those who took out home loans they KNEW they couldn't afford.  Their properties will soon be selling at bargain prices, and that will continue to help moderate inflation in housing prices.

Answer 7

It looks like one big garage sale does it not?

Answer 8

Recession

Answer 9

well right now i'd say we're in a recession. now depending on how screwed up things really are depends on whether we're headed for a depression. however with unemployment ever so on the rise we could be headed for a depression.

Answer 10

total collapse.  i hate to be negative....  but i feel that is what is coming.  the taxes we pay , the high cost of fuel { no new refineries being built , no drilling locally , too many restrictions on us by congress and environmentalists } , cost of food , medicines and hospital costs are going up { too many free treating of illegal immigrants..we do pay for that ..} and other things to name a few.  congress gets more and more time off and more and more pay, while we are lucky to get a 25 cent raise a year !!  not right, the welfare system needs to be reformed and taxes brought under control.  that is just a few things i am concerned about... how do you feel about this... i am saying total collapse...again...

Answer 11

no you are right. we are there. and it is going to get worse. better save your money for hard times ahead. we may not totally collapse. but it will be close. if the war ends there may be some change.

Answer 12

Most definatly a Recession which is probably a result of all the greed over the last decade.