How Does This Recession Look Compared to a More Historical Recession?
It seems that every 20 years or so there is a recession.
The western economy peaks and every body thinks everything is safe as houses.
Then some form of crisis happens and jobs are lost and homes are sent into foreclosure.
Some houses in the United States are selling for $20,000 at the moment on pre-foreclosure and foreclosure deals.
Let's take a look at a more historical recession.
In the early 1980's we had the largest and most devastating official recession in over 25 years.
This was caused by tight monetary policy in the U.
S.
to control inflation and sharp correction to overproduction of the previous decade which had been masked by inflation.
This recession was short lived in the United States and was all but over by 1984, although countries like Ireland and Britain took longer to pull themselves out of it.
The general graph for a recession is a medium peak just before the recession kicks in, leading up to a depression that can last for years, but things generally hit a new high after the recession is over.
The worrying thing about this current recession are the overwhelming causes.
In historical recessions we never had so many distinctive causes for start of a recession.
This time around there was September 11th attacks and accounting scandals contributing to a relatively mild contraction in the North American economy.
The fear for most people is that this recession could last up to 5 years before jobs are back at their original peak and consumer spending is at it's all time high again.
The western economy peaks and every body thinks everything is safe as houses.
Then some form of crisis happens and jobs are lost and homes are sent into foreclosure.
Some houses in the United States are selling for $20,000 at the moment on pre-foreclosure and foreclosure deals.
Let's take a look at a more historical recession.
In the early 1980's we had the largest and most devastating official recession in over 25 years.
This was caused by tight monetary policy in the U.
S.
to control inflation and sharp correction to overproduction of the previous decade which had been masked by inflation.
This recession was short lived in the United States and was all but over by 1984, although countries like Ireland and Britain took longer to pull themselves out of it.
The general graph for a recession is a medium peak just before the recession kicks in, leading up to a depression that can last for years, but things generally hit a new high after the recession is over.
The worrying thing about this current recession are the overwhelming causes.
In historical recessions we never had so many distinctive causes for start of a recession.
This time around there was September 11th attacks and accounting scandals contributing to a relatively mild contraction in the North American economy.
The fear for most people is that this recession could last up to 5 years before jobs are back at their original peak and consumer spending is at it's all time high again.