Leave your comments here if you don’t think we’re heading to a depression:
By Daniel at 8 March, 2009, 1:34 am
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Current recession is already 15 months long. Many still think this is just a long recession but at the same time, some think we are heading to a depression. What do you think, fellow members.
From Wikipedia - In economics, a depression is defined as a sustained, long downturn in one or more economies. It is more severe than a recession, which is seen as a normal downturn in the business cycle.
Considered a rare but extreme form of recession, a depression is characterized by abnormal increases in unemployment, restriction of credit, shrinking output and investment, numerous bankruptcies, reduced amounts of trade and commerce, as well as highly volatile relative currency value fluctuations, mostly devaluations. Price deflation or hyperinflation are also common elements of a depression.
According to this definition I would say we are there. Also consider that the DOW crossed the 2000 mark for the first time ever in 1987. That was a short 22 years ago. Unfortunately, and I hope I am wrong,I feel the economy will become worse. We are truly in a different world than where we were 2 years ago and we will be here for a very long time to come. We may never see the DOW return to the record 14,100+ 2007 level. I would settle for what is the new starting point, or what some would call a bottom.
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The Stock market will drop under another 40-50% and inflation will start to creep into the economy and unemployment will be in the high teens and 20+%. Great Fortunes will be lost and made during the next 2-5 years. Look to improve yourself and for opportunities you would not otherwise see.
The syntax of specifiers and heads. ,