Reply #11: You Took Econ 101 Didn't You? [View All]

[ProfessorGAC]

This is a recession. Sorry if it doesn't fit your limited definition of one.

Full econometric analysis indicates that the growth rate of real GDP, rate of saturation of the employment market, productivity gains in excess of reduced employment levels, rate of exportation increase, and velocity of money are all in the bottom quartile of the last 65 years.

Economists who still rely on the old definitions are generally laughed off in the econ crowd in which i run. It's old fashion, it's statistically invalid, and shows a grotesque lack of understanding of how a macroeconomy actually works.

We hit this null in May of 2001. Not before Bush; during! Things have not improved since. Sept. 11 was a momentary blip, a special cause as it were, from which we recovered by February of 2002.

No excuses. We're in a recession. The fiscal situation in Washington is all that is propping up the GDP, and all the other valid indicators are negative.

Any questions?
The Professor