Recession? Depression?
looking back at History, Recession or Depression have been caused by an in balance in an economy which most economist agree with.
so therefore my Question is how big is the current in balance and are we heading into a Recession or Depression?
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As soon as the election is over, the recession/depression talk will probably stop. A recession is defined as two consecutive quarters of negative growth. We actually had growth last quarter and could still grow this quarter. It is hype. Depression is a long drawn out recession
Use a relocating vehicle as an analogy! A vehicle will probably be in recession whilst you're nonetheless urgent gasoline however the vehicle continues loosing energy. You are nonetheless burning identical quantity of gasoline. On the opposite hand, Depression will probably be while you stab the brake pedal and your vehicle is coming to a halt. A well illustration; if you purchase a condominium for $100k 10 yrs in the past, say its importance went as much as $2 hundred in five yrs, after which began a downward spiral (recession), then the importance of the condominium in these days is not up to $100k (despair) which was once decrease than its valued at 10 yrs in the past.
If we don't drill for oil, the chances of going into a recession are high.
Kristina thats a stupid answer, oil currently stands at about $63 a barrell the lowest in two years