I have been getting a lot of questions lately asking whether or not we're going into an economic depression, what should people do during these turbulent times, and what, exactly, is the difference between a recession and a depression.
To answer the third question, see: Recession? Depression? What's the difference?
To answer the first question: almost certainly not. The United States may even avoid a recession, but it is tough to tell.
My overall advice: Take a few deep breaths and calm down. And avoid buying stuff you cannot afford. This advice also works for booms and periods of "irrational exuberance". It isn't particularly sexy advice, but it works.
To answer the first question: almost certainly not. The United States may even avoid a recession, but it is tough to tell.
My overall advice: Take a few deep breaths and calm down. And avoid buying stuff you cannot afford. This advice also works for booms and periods of "irrational exuberance". It isn't particularly sexy advice, but it works.
Comments
Are you really that stupid?
No recession?!
Hopefully you’ll experience the common wisdom version of a depression for giving such truly awful advice.
We are already at least in a recession, and things might get much much worse.
tough crowd. but even the pundits on cnbc admit the unlikely possibility that a recession might be avoided if we use the 2 quarters of declining gdp definition. mr. moffat takes an optimistic view, certainly, and i do not share his outlook at this moment, but i do appreciate his informed and reasoned opinions.
Honestly people, read and research! All these questions are good. Learn from the mistakes that are being made and do not let it happen in the future. We are not in a recession yet. It is very possible and so is a depression but nothing like the past because we are prepared and have been through it before. Fed Chairman Ben Bernanke is a student of the Great Depression. The best part about history is your can learn from it and see where people went wrong. Watch your spending and be wise (which should of happened from the beginning and we would never be in this mess). STOP being GREEDY! Heres some help….
Definition of recession: A recession is a contraction phase of the business cycle. The U.S. based National Bureau of Economic Research (NBER) defines a recession 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.”[1] A sustained recession may become a depression.
American newspapers often quote the rule of thumb that a recession occurs when real gross domestic product (GDP) growth is negative for two or more consecutive quarters
Are you an economist or are you paid by the media and political figures that got us into this mess to lie to people, trying to run damage control. Not only are we in a recession, that may be able to hold on a while before it totally sinks, but our economy is ready to tank completely. If you paid attention in your classes, you are aware of the fact our dollar is worth nothing and only based on papers from our government that is past being bankrupt. Since the economy is global, we are sustained by that, it is up to the rest of the world to bail us out to save their own economies and they will have to. We can’t and its because of people like you who are either ignorant or liars that people can’t see the real problems. The powers that be are terrified to have all of us discover what the real truths are and what the REAL solutions are. Our money is no better than monopoly money and you know it. The only difference is U.S. ‘Money’ is ACCEPTED, as currency. I lost respect for you totally and have been reading your articles for quite a while. You disappoint me and my hopes in people of integrity, honesty and the ‘old’ American Way, Not this new way which is lie to tail off for self preservation and self-betterment. SHAME.
This guy is an idiot. How can he possibly say we are not in a recession?
I must also say that we are at least in a recession. It all started in the year 2000 and has been getting worse since. The experts never say we are in a recession until it has all ready passed. I guess this is not to panic everybody, however, I believe everyone should be told the truth instead being lied to in hopes that things will not get worse. I don’t think we are in a depression yet but in the last month things have looked very bad as far as people spending their money goes. I things don’t change in the next year I can see a depression on the rise.
Buddy, you don’t know what you’re talking about.The other day, the U.S. Labor Board stated that we’ve been in a recesion since November of 2007.
A person really has to wonder about people today and their ability to wake up to the reality. The misuse of credit and the 40 or so years we have been using Keynesian Economics is what put us on the rocks.
Yup, if you believe this guy you must be living in NeverNeverLand…the proof is all around us and we may be heading for the Great Depression all over again. Unfortunately it’s the denial mentality perpetuated by people such as Mike Moffatt that has steered us here in the first place…
Wow! It really doesnīt take much perceptive power to realize how recessed and depressed (sluggish,sleepy and right down drowsy) the american economy is and has been over the past 3 or 4 years (At least…)
What were americans thinking??? Chinaīs been filling up their pockets with northamerican and eurpoean money for years now !!!!
Didnīt it occur to you people that there would be a financial vacuity appearing somewhere after all this time as a result of the very succesful Chinese business campaign and as Terrence Deagle very wisely pointed out YEARS OF CREDIT RESOURCES BEING STUPIDLY AND MADLY MISSUSED.
WAKE UP FELLAS
THIS IS TO LAST AT LEAST 5 YEARS SO GET USED TO IT AND LETīS START SAVING BUCKS AND WORKING DOUBLE SHIFTS.
WISH YOU A HAPPY AND BUSY 2009
Ernesto Coronado
Business consultant
Monterrey City México
We were in a recession when you wrote your article. Read the news.
he,he,he precisely mickey… thatīs exactly the point!! Donīt most of you americans read the newspapers anymore!? because if you asked me this whole mess had just been nothing else but a well in advanced notified disaster ( well this is if most of the american people had the chance to read the news this past decade).
So what was it champ !?? Sorry guys but ignorance is expensive.
C you around…
It is 6/20/2009 and we are in that recession now. The way things are going we will be in a depression by this time next year.
July 16th-2009-Stocks up 3.1% today
The Beginning of the Suckers Market. Today marks the beginning of the “Suckers Market.” Sure, there’s some excellent deals on cheap stocks right now if you’re stupid enough to invest mainstream. I’ll make a bold prediction that we’ll see an increase in the New York Stock Exchange over the next ten weeks and then “choco-boom.” In other words, it will crash again by the middle of October.
ha ha ha ha!!!! you are damn right Sir!! CHoco BooM!!!
I totally agree with Terrenceīs opinion on this particular issue, itīs best to remain conservative when investing our money these days. The first quarter of 2010 will be decisive and weīd better keep our eyes wide-open.