mystictongue3

Economic crisis

In HOT BUTTON TOPIC on October 5, 2008 at UTC.45.31.

What is a recession? A recession is a contraction in the business cycle. Another definition suggests that the GDP (gross domestic product) growth has to be negative two or more quarters in a row to declare a recession. Technically, our economy has slowed down considerably, however it is still growing. Which is the main reason why all these different economists can’t agree on what to call this financial crisis.

On the oher hand, when economic activity declines, or when like unemployment, income, sales, construction, and production go down, we are in a recession

Former chairman of the Federal reserve, Alan Greenspan has said this is “the worst crisis in a 100 years.” That would suggest that the Savings & Loan debacle of the 90’s pales in comparison to what we are now faced with. With his pronouncement one has to wonder if this crisis is our generations “Great Depression.”

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