Thursday, August 13, 2009


Well they say we in a recession, what exactly is a recession? I personally don’t know but i will like to find out.  Well i looked it up on wikipedia and this is what they said about it:

This article is about a general slowdown in economic activity. For other uses, see Recession (disambiguation).

In economics, a recession is a general slowdown in economic activity over a sustained period of time, or a business cycle contraction.[1][2] During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes and business profits all fall during recessions.

I still don’t think that we are in a recession, but who is me to say that? I’m not an economist. According  to An article in the 1975 New York times.

In a 1975 New York Times article, economic statistician Julius Shiskin suggested several rules of thumb for identifying a recession, one of which was "two down quarters of GDP".[3] In time, the other rules of thumb were forgotten,[4] and a recession is now often defined simply as a period when GDP falls (negative real economic growth) for at least two quarters.[5][6] Some economists prefer a more robust definition of a 1.5% rise in unemployment within 12 months.


According to the wikipedia These are the attributes of a recession. 

A recession has many attributes that can occur simultaneously and can include declines in coincident measures of activity such as employment, investment, and corporate profits.

A severe (GDP down by 10%) or prolonged (three or four years) recession is referred to as an economic depression, although some argue that their causes and cures can be different.[7] As an informal shorthand, economists sometimes refer to different recession shapes, such as V-shaped, U-shaped, L-shaped and W-shaped recessions.

In the US, V-shaped, or short-and-sharp contractions followed by rapid and sustained recovery, occurred in 1954 and 1990-91; U-shaped (prolonged slump) in 1974-75, and W-shaped, or double-dip recessions in 1949 and 1980-82. Japan’s 1993-94 recession was U-shaped and its 8-out-of-9 quarters of contraction in 1997-99 can be described as L-shaped. Korea, Hong Kong and South-east Asia experienced U-shaped recessions in 1997-98, although Thailand’s eight consecutive quarters of decline should be termed L-shaped.

I still not sure and i will be doing some more research. but if you are an economist or you think you know something about the subject let me know………… The last recession i know about in T&T Was in the late 80’s to early 90’s and Lord it was real hard for us, based on how things are now, is a big fat nooooooo…….

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