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| quote: | Originally posted by biscomusic321
To my mind there already is a depression - we are looking at lower numbers across the board "Retail sales decreased 1.2 percent last month, nearly double the 0.7 percent drop that had been expected, according to one government report, while an index of New York manufacturing hit a record low in September." - nytimes
I just don't see anything really being secure on the international or domestic market- energy is tanking, credit is gone in the market place, and national debt is skyrocketing... we are literally paying this crisis of through the chinese buying our bonds SCARY.
Hopefully all these market jolts will settle and people will realize that quality companies are now significantly undervalued and return their money (read confidence) to the market |
i wish some people would do a little research before throwing terms around willy-nilly.
| quote: |
A good rule of thumb for determining the difference between a recession and a depression is to look at the changes in GNP. A depression is any economic downturn where real GDP declines by more than 10 percent. A recession is an economic downturn that is less severe.
By this yardstick, the last depression in the United States was from May 1937 to June 1938, where real GDP declined by 18.2 percent. If we use this method then the Great Depression of the 1930s can be seen as two separate events: an incredibly severe depression lasting from August 1929 to March 1933 where real GDP declined by almost 33 percent, a period of recovery, then another less severe depression of 1937-38. The United States hasn’t had anything even close to a depression in the post-war period. The worst recession in the last 60 years was from November 1973 to March 1975, where real GDP fell by 4.9 percent. Countries such as Finland and Indonesia have suffered depressions in recent memory using this definition. |
http://economics.about.com/cs/busin...pressions_2.htm
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