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turtle33
June 14th, 2008, 4:44pm
These series of articles explain recession and how it works.



http://www.howstuffworks.com/recession.htm

HSXJedi
June 14th, 2008, 5:44pm
I suppose this is posted because of some talking heads using the R word?

By definition we are not in a recession. The economy was previously growing at a higher rate. It is now growing at a slower rate, but it's still growth.

In order to be in a recession we must recede: The official definition of an economic recession is an economy that has negative growth, that shrinks, for six consecutive months (2 quarters) or more.

We are experiencing the slowest growth we've had in years, but clearly it cannot be a recession since we have not had negative (GDP) numbers for two consecutive quarters.

turtle33
June 14th, 2008, 5:56pm
I agree, but a lot of people, not just talking heads, think we are in a recession because of higher gas prices, etc. So I posted this with the hopes of people better understanding the economy and how it works.

HSXJedi
June 14th, 2008, 6:00pm
I agree, but a lot of people, not just talking heads, think we are in a recession because of higher gas prices, etc. So I posted this with the hopes of people better understanding the economy and how it works.

Gotcha. :cool2: