?From a common sense standpoint right now, we?re in a recession.? Warren Buffet.Originally posted by: Rainsford
I've heard that, and I suspect that's more than likely the worst thing that will happen. The point I take from things like that is that the way the economy really works (ie, you have to judge things over a long period of time) is quite the opposite of how people and the media view it (ie, OMG, the recession is starting on Tuesday). Things are never as good as they seem or as bad as they seem, because people are EXTREMELY prone to overreacting to any and all economic indicators.Originally posted by: charrison
There are more than few economist saying by the time we actually know were are in recession, we will probably be out of it. It will be at least 6-8 months before we know if we have had 2 quarters of negative growth.Originally posted by: Rainsford
Guys, we can talk about unemployment and all that as much as we want, but casually throwing around the word "recession" misses the point that it means something very specific...2 consecutive quarters of negative economic growth. We're not even close to that, as since we're not, that tells me this is a bump in the road, not a huge crash. There are certainly problems, but nothing is falling apart as far as I can see. The problem is that recession fear feeds on itself, the more it's reported, the more people talk about it, the more it gets reporter, the more real the problem seems. But what we have here is basically a stock market dip, not a problem with the fundamental foundation of the economy. People are freaking out, but they'll get over it soon enough.
And yes, Buffet knows the technical definition of a recession.