Questions about recession...and no, I'm not interested in the politics surrounding them...?

You opened a lot of issues her and one could write a book about it - but here goes:-

1 There is no fundamental difference between a recession and depression but recession is usually used for shorter periods. Two successive quarters of falling economic activity constitute a recession

2. The immediate impact on 'middle classes' is that there are unexpected failures of corporations and capital invested in stock markets is lost. For 'lower' classes there are redundancies and it is harder to find work.

3 Recessions end when a number of corporations see opportunities to make money again and start investing and taking on staff. This is often triggered by low interest rates.

4 When a country begins to emerge from recession people start to find work again and start spending money and those with capital start investing so stock markets respond.

5 It can be any length of time but it is usually determined by the overall mood of confidence and the action of governments to stimulate spending

6 It is a torrid time for politicians who always get blamed. The best thing that governments can do is to invest in infrastructure to create jobs and provide long term advantages to the community.

7 No. We are continually learning how to handle them.

What is the difference between recession and depression?

A recession is when the economy starts to take a nose dive in growth, new jobs and profits! The consumers spending is what keeps a recession from coming! Housing market was always a safe haven to keep a bad recession from even happening! And the Big main Interest can help to by lowering it! But because of the house market colapse! (The big ballon bust) The housing market is no longer a safe haven from stopping a recession from coming!

But that's not the biggest problem we all will be facing soon!!! The big main interest rate has already been lowered to 4.25% 2 months ago and it may end up being dropped to 3.25 % but that will show just how bad things really are! Because that will be the lowest in American history!!!

Which will be very bad to do, seeing the American dollar is already losing a lot of value already! and by lowering it that low could back fire and not only bring the bad recession coming! a lot faster! And maybe even worse to throw us into a depression!!! Which if a depression was to come to the American people in todays fast pace world!!! It will be a complete disaster for Hundreds of thousands, if not millions of Americans! all businesses and companies will all close up!

Poverty will be every where, Crime with be a huge everyday life to all! And all America's enemys will take full advantiage of the depression the the Americans would be hit with!!! It will be a complete nightmare for all, the American people today could never withstand a depression!!!

The biggest things that caused all this upon us was first te wars we have still going on! The costs are Giganic and then the Housing market took off lie a turbo rocket and many were getting into houses they no way could ever afford because of dishonest bankers and realitors! the interest rate at 4.25 % help a;most anyone to buy a house if they could afford the house or not, because very dishonest bankers were making illegal mortiages that later would make te buys lose there houses in forced foreclosures!!

realitors were jacking up house prices double and tripple of what the houses were even worth! WHIICH MADE THE ECONOMY BOOM, AND MADE MANY SELLERS AND BANKERS AND REALITORS RICH!!!!

But everyone knew it wasn't going to last so they sold as many houses as they could and as fast as they could to anyone that wanted one! And at any COST!!! So they, sure many got houses they could have never been able to ever afford the normal way of getting a loan! but mst home buyers were sucked into Arm loans and pay the interest only loans!

Well the problem with tha was, it was only for a short term and whe the term was up, they all got nailed huge house payments, double and tripple in size in the payments which most can't fford, so the baks now are foreclosing on all of them just as fast as they can, ad may can't even refinance either, the mortiage companies aren't allowing it so the people are just losing there homes!

So to be point! about the whole problem, We have nothing good enough to stop the recession form coming and it's being talked about to be the worse recession ever hit American people! I feel the job forces will be starting the domino effects of lay off's probably around the end of feb. to the middle of Mar. and it will be a everyday thing and life as we all once knew it is in for a huge change of very unhappyness for most!!!

About all can say, is people better start getting ready for it, So the can be prepared of what's to come! Businesses had there hands in this problem too! All they have been doing for the last 5 - 6 years is jacking up all there products and services prices! o there to blame too! f there prices were back down to half of what there charging the consumers could stop the huge recession on it's way, but see they won't!

Businesses have gotten so dam greedy and raked in so many high profits, that they don't care if the recession comes, they made so much money, that it won't hurt the business owners pocket book!!!

I have been telling people for the last year! that the only way we can get back at the greedy money thirsty businesses today to stop them in there tracks of price hiking was for all of us to just quite buying there products and services until they dropped there high buck prices back down to where they should be!! bt no one seem to want to listen and just bought the stuff anyway at amost double the price it should actualy be at!!

So now they will wish they had listened to may warning about crazy spending! I really don't think the Fed's can stop the huge recession coming, they have no save haven housing market, main interest rate is too low already! the only real chance they have is force businesses to drop there prices in half! To get people spending again, or raise the main interest

up to at least 12% to see if it could actually turn the enonomy around!!! lowering it any further could only make a disaster!!!

Sorry I couldn't answer all your questions, I'd have to be on here all day!!! Ask the other questions in just a few per post!!!

There is no formal definition of a depression that I know of. The populace starts calling it that. Look for unemployment in excess of twenty percent admitted more likely above thirty percent, extended period exceeding ten years, a switch from inflation to deflation as the major trend in the society and probably a change in the world's benchmark currency. For example, prior to the Great Depression, the Pound Sterling was the unit all others monies were compared against. Now the US dollar is the basis of international transactions. Depressions are also intractable to efforts by governments to end them. Economic cycles are natural, but not as predictable as say, planetary orbits. For more on cycles look through Megs and my answers to questions for continuing discussion on the subject. Or, email me and I'll cut and paste a compilation. The discussion is considerable.

Recessions occur periodically in the economy, at least once a decade, usually preceded by excess in some investment or financial market. It really doesn't matter much who is president because government is too slow to act to have much of an influence, but after the 1930's fed policy has often been effective in minimizing the effects. See graph at

http://www.visualizingeconomics.com/2006/08/15/ave...

which shows the inflation adjusted average income in the US since 1913. You can clearly see the effects of recessions by the dips in average income. These dips occur because some people become unemployed so the average is lowered because they have zero income. The people who lose their jobs are usually blue collar workers, but since 1980 it has effected white collar workers also, but in all cases it is young worker with little work experience that have the highest unemployment.

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