Recession

‘The real measure of your wealth is how much you'd be worth if you lost all your money.’—Unknown.

Merriam Webster defines recession as a period of reduced economic activity and is extended by others as decline in GDP for two or more quarters.

National Bureau of Economic Research defines recession as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real gross domestic product, real income, employment, industrial production, and wholesale-retail sales."

For the individual the pay check and the size of it are indicative of recession or no recession. With many companies laying off employees and shutting down shop, the employment opportunities should have declined to a great extent and any one in this situation would not be surprised if he gets the pink slip.

The common man sees only the effect of fall in the indices like GDP, wholesale-retail sales etc. as an extra out-go from his kitty and decline in the size of his pocket book. It is an approved fact that the US news has reported the loss of many jobs; the government has brought in various measures to stimulate the economy and help the people survive. A report yesterday records that the economy may not get back on its rails of near 3% growth for another year or two. This outlook is a certain approval that the country’s economy is going into a recession, official or not.

The common man realizes the impact through the rise in oil prices, food prices, high interest rates, loss of job and the loss of his mortgaged house. His mutual fund investments show negative growth and funds disappear fast from his account. The stock market losses reported everyday is indicative of reduced value and returns to the common man on his dear investment, the real insurance for his future welfare or his retired life.

The report that some 65K jobs have disappeared in a single month from the face of the nation creates panic. The news that the price of rice has gone up and people line up to buy and the stores announce quotas are certainly unnerving. The cost of health insurance is already high and the news that the equity on the house which represented life’s dream and savings has disappeared should bring depression of spirits and impending feeling of doom. The oil price in the international market has doubled in a very short time resulting in gas crossing the $4 mark. The houses with the ‘for sale’ indicators remaining unsold for months on end on one’s route to work are eye-sore pieces indicative of recession, creating a flutter deep down in the stomach of other house owners. Money is a fast spreading disease for which money is the cure.

The solace lies in sitting before the TV with coke and chips and watch CNN telecasting news on presidential elections.

‘Blessed is he who expects nothing, for he shall never be disappointed.’— Benjamin Franklin


Housing Woes Sweet Home Woes

Market watch

Quotes from 'quotegarden'