What does this recession mean to us for our everyday lives?
Posted by admin
asked:
I am curious, I have been watching the news about the econonmy and the “recession” we are in, and I have a question: What does this mean for our everyday lives? If I am understanding correctly, it has to do more with credit than anything else?!? I mean does it mean that from now on if we want to buy things we should either save and buy it outright(no credit) or what? What exactly does this mean? Is there anything we can do to be “okay” during these hard times??
Gilbert
I am curious, I have been watching the news about the econonmy and the “recession” we are in, and I have a question: What does this mean for our everyday lives? If I am understanding correctly, it has to do more with credit than anything else?!? I mean does it mean that from now on if we want to buy things we should either save and buy it outright(no credit) or what? What exactly does this mean? Is there anything we can do to be “okay” during these hard times??
Gilbert
November 5th, 2009 at 4:49 am
It means paying $5 for a bag of chips…
November 8th, 2009 at 8:55 am
we must spend less on everyday things or investing wisely
November 11th, 2009 at 5:10 am
It can mean MANY things. Just prepare yourself. Who knows how long or bad it will be.
November 11th, 2009 at 7:25 am
People will be hoarding what money they have it will be hard to buy gas and stuff you need. it will be very expensive and it could be things may not be on the shelves i meant eh Great depression of 30’s i understand was horrible they even had ration cards and stuff for paper towles and toilet paper take care. but i dont’ think it willb e that way for us who knows that is why the govt is working so hard to help us.
November 11th, 2009 at 10:05 am
it means tha dollar has been controlled so long oil is it’s only counter measure
November 12th, 2009 at 2:25 pm
Try researching it on Wikipedia. But it means that the economy is weak and prices inflate while pay goes down, therefore people spend less, prices rise more, people lose jobs, and it keeps on going until the economy begins to recover. It is one fourth of the economy cycle (the entire cycle takes around 8 years). If it gets too bad it is called a depression (such as the Great Depression). Don’t worry, but be prepared.
November 13th, 2009 at 8:23 pm
Inflation, inflation, inflation. Prices for goods becoming ridiculously high from groceries to gas. Salaries staying the same or even worse losing your job…
November 16th, 2009 at 9:05 am
Well in a global perspectivo on your question, this means that since the dollar and the US credit are at a historical low it means that foreigners can buy alot with the same money. This has a direct effect on the US since to break even the US has to up prices on many things (mortgage, credit, water, electricty. food, ect…) but it comes with a huge cost. The mortgage crisis is the first in a likely chain of events by this recesion.
November 19th, 2009 at 6:18 am
First of all, remember that the media love to jack up the excitement level by exaggeration and hyperbole. Don’t fall for it; learn to put these things in context.
Recession is typically defined as a decline in GDP for two consecutive quarters. In a typical recession, business activity goes down, consumers stop spending as much, and unemployment goes up. Of the last 4 recessions, 3 lasted six to eight months; the other one lasted 16 months.
The stock market and the real estate market often decline *before* a recession and the stock market often perks up during the middle of a recession, because the market anticipates the future recovery.
The most obvious areas of concern for the average person are: is your job secure? If you have a business, worry about a decline in business. If you have stocks, either be a long-term buy&hold investor and keep them, or if not, then at least don’t sell them at the worst possible time, which would be at the start to middle of the recession.
On the plus side, bargains can be found during a recession. It may be a good time to shop for a vacation home, a car, and to shop for stocks in the stock market, *if* your finances are secure.
Some of the other answers mention inflation. In a typical recession, inflation is kept under control because of the lack of demand; many past recessions have been deflationary or at least kept inflation to a minimum. But the ’stagflation’ of the 70’s was a notable and important exception.