Yeah well that’s what I would say about this whole thing. Technically there are many factors that cause recession. What I studied in school and college is:
“Recession is defined as a significant decline in economic activity across the economy lasting more than a few months normally visible in real Gross Domestic Product (GDP), real income, employment, industrial production and wholesale-retail sales”. More specifically, recession is defined as when businesses cease to expand, the GDP diminishes for two consecutive quarters, the rate of unemployment rises and housing prices decline. Many factors contribute to an economy’s fall into a recession, but the major cause is inflation.Inflation refers to a general rise in the prices of goods and services over a period of time. The higher the rate of inflation, the smaller the percentage of goods and services that can be purchased with the same amount of money. Inflation can happen for reasons as varied as increased production costs, higher energy costs and national debt.
In an inflationary environment, people tend to cut out leisure spending, reduce overall spending and begin to save more. But as individuals and businesses curtail expenditures in an effort to trim costs, this causes GDP to decline. Unemployment rates rise because companies lay off workers to cut costs. It is these combined factors that drive the economy into recession.”
Ok I was kidding. I didn’t remember all of that. I just flicked it from http://www.investopedia.com. Anyway, what they’re trying to say here is that if something goes up, it’ll definitely come down. And if a cycle has to work, whatever goes down should come up right?
Also the media hype for the recession, this one especially, is ugly. So some people lost some money. Is that so important that people have to go crying to their mommies (the governments, in this case) to save them? Every morning, just looking at the papers makes me go crazy. Banks are cutting credit, I-banks have collapsed, loads of people have lost their jobs… But the wacky guy that i don’t know is still sending sentimental stupid “This is what your friends are for” mails with every spelling mistake humanly possible. Why isn’t anyone laying him off?
Recession?? Bah! Humbug! Go Scrooge!!!