Is it just Me or are We in a Recession?

When a recession happens, unemployment goes up, and inflation slows but usually doesn’t stop. 

Housing turns down.  Everyday there are more houses on the market but no one to buy them. 

More and more people go into debt to cover their living expenses.  Credit cards are used to buy food.  There is not enough money to make ends meet.  Defaults and bankruptcies climb. 

Everyone, the banks, the credit card companies, the mortgage companies all want their money.  To stay afloat, People pick up second and third jobs to help them through the tough times.  This even may help those lucky few that can find them. 

The need for charity goes up, but the money stream dries up, and needs go unmet. 

People start living by what they have or what they can keep.  They don’t buy new; No new cars, no new houses, no new clothes, no new anything. 

People skimp on almost everything, just to get by.  Basic needs such as medicine and food become a struggle.

Feelings of desperation grow as debts do.  Emotional stress increases as does divorces, child abuse, and suicides. 

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Definition – Recession:  in economic terms is an extended downturn in the real Gross Domestic Production or GDP, usually two or more quarters (6 months) or longer.  However, a recession is shorter than a depression.   

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Headlines ripped from the business section front page of my Saturday, January 12th, 2008 newspaper read:

  • “Buyout won’t mean foreclosure relief”
  • “Trade deficit hits 14-month high”
  • “Worries sink consumer confidence”
  • “Anxiety triggers another big slide” (speaking of the stock market)

The perspectives of those headlines are from the economists’ view. 

I would include my own from the view of a typical consumer.

  • “Gas prices this past week hit record highs”
  • “Credit Card Company warns of rising defaults”
  • “Mortgage Defaults Rise”
  • “Housing downfall deepens”
  • “Housing freefall hits charities

All you need are the news headlines if you want to capture trends as they occur.  Are you in your own recession?

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