Wednesday, April 30, 2008
It Isn't a Recession Yet
The economy grew by 0.6% last quarter. Yeah, that sucks, but it isn't a "recession". In fact, it means we can't technically be in a recession until 3Q since one requires two consecutive quarters of contraction. And we sure as hell aren't in a "depression" as some pundits like to say.
Part of the perception problem is that the press is focusing on losers who over-leveraged, over borrowed, or who just can't manage money. Next to the above link on Yahoo is this one about people "selling their prized possessions just to make ends meet". Boo hoo. Perhaps if they had saved money instead of buying crap when times were good they would have savings to fall back on. But no, Americans are looking to the "government" to bail them out of their bad decisions on everything mortgages to health so they don't have to save, eat right, exercise or do anything else that requires discipline.
Posted by Director Mitch at 6:30 AM