Recession, the definition

Discussion in 'Economy' started by AllieBaba, Aug 1, 2008.

  1. AllieBaba
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    AllieBaba BANNED

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    Since apparently nobody here knows what it means:

    "An extended decline in general business activity, typically two consecutive quarters of falling real gross national product."

    recession - Definitions from Dictionary.com

    NOW....have we had two consecutive quarters of FALLING REAL GROSS NATIONAL PRODUCT???

    Why no, we haven't. I guess we aren't in a recession.
     
  2. JeffWartman
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    JeffWartman Senior Member

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    One of the issues with the business cycle is that you really do not know what is happening in the present. The only way to accurately describe economic periods is by looking back on them. We could very well be in a recession, the problem is that we really can't know until we're already out of it. That's why fiscal policy really doesn't work.
     
  3. Chris
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    Chris Gold Member

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  4. Chris
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    Chris Gold Member

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    U.S. Vehicle Sales Fall 13.2% Amid High Gas Prices and Tight Credit

    By NICK BUNKLEY
    Published: August 2, 2008
    Vehicle sales in the United States fell last month to their lowest level in 16 years, as consumers continued to shun large trucks because of high gas prices, and tight credit kept less creditworthy customers off lots.
    Sam VarnHagen/Ford Motor, via Associated Press
    The automaker reported that sales in the United States fell 15 percent in July from a year ago.

    Sales were down 13.2 percent, at a time when the companies had expected to begin seeing an improvement.

    Instead, the five largest automakers each reported sales declines on Friday. Sales fell 26.1 percent at General Motors, the largest car company, while Chrysler, which used to be the third-largest, reported a 28.8 percent decline and came within a few thousand sales of falling to sixth place. The Ford Motor Company posted a 14.7 percent decline.

    Together, the three Detroit automakers accounted for just 42.7 percent of the vehicle market last month, selling about 150,000 fewer vehicles than they had a year earlier.

    http://www.nytimes.com/2008/08/02/business/02auto.html?ref=automobiles
     
  5. Chris
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    Chris Gold Member

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    U.S. unemployment rate hits 4-year high
    Sam Zuckerman, Chronicle Staff Writer

    Saturday, August 2, 2008

    (08-01) 13:51 PDT SAN FRANCISCO -- The nation's job market contracted in July and unemployment rose to a four-year high as employers across a broad swath of industries hunkered down.

    Payrolls outside the farm sector dipped by 51,000, while the jobless rate rose to 5.7 percent, up 0.2 percentage points from June, the Labor Department reported Friday.

    The economy has lost jobs every month this year, with payrolls down by 463,000 since December. The unemployment rate hasn't been this high since March 2004.

    The erosion of jobs reflects a range of economic problems, including the collapse of the housing market, a consumer pullback and abysmal business conditions in such industries as banking and motor vehicles. For the most part, job cuts have been not major but piecemeal.

    "It's broad-based weakness, not huge declines anywhere, but very widely spread," said Nigel Gault, chief U.S. economist for the Massachusetts consulting firm Global Insight. "It's a slow-drop deterioration, not catastrophic, but every month it gets worse."

    U.S. unemployment rate hits 4-year high
     
    Last edited: Aug 2, 2008
  6. Chris
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    Chris Gold Member

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    463,000 jobs lost since December?
     
  7. RetiredGySgt
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    RetiredGySgt Platinum Member

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    Full employment is 6 percent unemployment, we are at 5.7 percent.

    As for houses they were artificially to high they had to adjust or crash. Thats what happens when stuff is speculated to ignorant amounts.
     
  8. Chris
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    Chris Gold Member

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    Full employment?

    Not for those 463,000 people.
     
  9. Charles_Main
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    Charles_Main AR15 Owner

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    Kirk, you will never employ everyone. 6% has long been considered Full employment, because it is impractical to expect much better than that. You are old enough to remember the sky high unemployment levels of the 70's are you not? You want to see bad unemployment, try 11%.
     
  10. mattskramer
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    mattskramer Senior Member

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    Recession - Wikipedia, the free encyclopedia

    A recession is a contraction phase of the business cycle. A common rule of thumb is that a recession occurs when real gross domestic product (GDP) growth is negative for two or more consecutive quarters. In the USA, the National Bureau of Economic Research (NBER) defines it more broadly as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales
     

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