Ok stupid question but I am coming here for a smart answer..

[southernleftylady]

what exactly happens in a Recession ?
Told you it was a stupid question but hey... ill never truely know unless I ask
(off to hide now)

[HardWorkingDem]

1. Hey, if anyone lampoons you for asking, the egg's on them...

I applaud anyone who comes forward and asks a question......

[Sequoia]

2. It's not a stupid question at all.

Come forth Lazarus !!! No need to hide. But see you ask the question many of us want to.

[Fresh_Start]

3. The economy contracts

could mean
job loss
deterioration of investments (your assets are worth less)
deterioration of profits (income falls)

might lead to deflation, inflation or stagflation
might be precursor to depression

given global financial markets, might not be localized to US but could spread globally

[youthere]

4. We don't produce or import as many goods( no one is buying)...

we don't work (unemployment rises), We don't buy (no jobs-no money), we don't produce or import as many goods ...and on and on.
On edit...If it isn't remedied quickly it becomes a DEPRESSION.

[FormerDittoHead]

5. ...GDP goes negative for at least 1/2 year...

http://en.wikipedia.org/wiki/Recession

...a recession is a decline in any country's gross domestic product (GDP), or negative real economic growth, for two or more successive quarters of a year.

Its significance is important, because the health of our economic system, on many dimensions, is based upon an ever growing economy.

Employment goes down.
Sales go down.
Production goes down.
Stocks go down.
Tax revenues go down.

[Hydra]

6. Good question

The problem is that we've gone WAY past a recession. We're in a freefall depression.

What does it translate into? High unemployment(it's much higher than the numbers say- those are doctored), nasty inflation as they print more dollars that aren't getting circulated(ie, not being paid as wages) and social services that get their funding pulled.

In short, a lot of people starve or freeze to death. You won't hear much about that, though, unless you're seeing it yourself.

Where we go from here is based on what Fratboy and the Fed want to do(since no one is effectively blocking them). They could fix this right now if they wanted to, so we have to look at what they want, that we don't want to give to them. Once that is known, you'll know the price for getting things more back to normal.

Knowing Bushco, though, they may demand draconian new laws, and give us no reprieve anyway.

[southernleftylady]

7. Thanks yall! See I knew I could find a answer quick!

I havent been on this board in awhile I miss you guys!

[laureloak]

8. If you have HOPE it doesn't matter, or does it?

[jwirr]

13. Hope depends on the circumstances. When Hoover was in charge

hope was not worth much. Once FDR came in then hope translated into action and it's value skyrocketed.

[laureloak]

14. Who needs reality when we have hope to guide us?

[terisan]

9. Businesess start to have too much inventory as sales slow, they lay off workers,

people lose jobs and fear more cut backs, they buy less, businesses cut prices to attract sales, they have to cut more workers or cut payroll, people have less money, they buy less..........banks don't want to lend capital because business prospects are not good...the downward spiral continues until someone starts a war or some other grand public works project. (If we are fortunate it will be peaceful public works like rebuilding our infrastructure or going green).


Nowadays, the capitalists will just invest overseas to get a good return and some of the American business layoffs may be in India. Also furriners will start snapping up american land. We will become cheap labor for foreign investors and wil be grateful.

[2beToby]

10. Ecomonic downturn for two quarters, but

as a general rule, less than 10% (which would be insanely high). 10% or more or for a long period of time and it's a depression. So I was told way back in high school and backed up by about.com, but you never know if that's accurate info.

Basically, the dollar loses against other currency some more. More people lose jobs/homes.

RWers will tell you recession "trims the fat" from the economy. That's why I personally think Shrub put us here on purpose.

Hope you find someone who knows for sure!

[Uncle Sinister]

11. The only reason we're not technically in a recession is that...

every dollar made in this country adds to the GDP.

Windfall profits by Oil and Pharmas? GDP up.
Explosive growth in the private prisons industry? GDP up.
Manufacture of bombs and bullets used in Iraq? GDP up.
Sale of body bags our solderiers come home in? GDP up.
Fees of Jack Abrimoff's legal team? GDP up.


It's not really a very good gauge of the REAL health of the economy, which has been in freefall for awhile now.

[FlyingSquirrel]

12. "Recession is when your neighbor loses their job..."

Depression is when you lose yours.

(can't remember who said that)