Comments on: Reporting On Economy – 1996 & 2008 http://www.floppingaces.net/2008/04/09/reporting-on-economy-1996-2008/ Sun, 08 Nov 2009 10:35:24 -0800 http://wordpress.org/?v=2.8.5 hourly 1 By: Gregory Dittman http://www.floppingaces.net/2008/04/09/reporting-on-economy-1996-2008/#comment-36036 Gregory Dittman Thu, 10 Apr 2008 02:08:16 +0000 http://www.floppingaces.net/?p=4341#comment-36036 Recessions, aka a down turn have to technically have to happen after every bubble. Why, because a bubble has a slope going up and a slope going down. Growth is being compared to itself. That's why one has to look back and not forward to see if one is in a recession. If there was no downward slope (viewed as negative growth) in a bubble then it's an upperward slope and technically there is no bubble till the downward slope. These kinds of resessions are just trying to find the natural growth of the economy. It's like a millionaire finding $50 and then spending it. He was richer and now he is poorer but he still has his million(s). A bad recession is when the line is flat and goes negative. In other words a stagnant economy went downhill. This is where whole towns and cities go belly up and where the guy working at a place for 20 years loses his job an he is unable to find another one. The economy would have to fall below the level before the bubble to achieve this kind of pain. Nobody is expecting that. This economy is suppose to drop 3% for this year and the U.S. is expected to grow over 3% next year. Recessions, aka a down turn have to technically have to happen after every bubble. Why, because a bubble has a slope going up and a slope going down. Growth is being compared to itself. That’s why one has to look back and not forward to see if one is in a recession. If there was no downward slope (viewed as negative growth) in a bubble then it’s an upperward slope and technically there is no bubble till the downward slope. These kinds of resessions are just trying to find the natural growth of the economy. It’s like a millionaire finding $50 and then spending it. He was richer and now he is poorer but he still has his million(s).

A bad recession is when the line is flat and goes negative. In other words a stagnant economy went downhill. This is where whole towns and cities go belly up and where the guy working at a place for 20 years loses his job an he is unable to find another one. The economy would have to fall below the level before the bubble to achieve this kind of pain. Nobody is expecting that. This economy is suppose to drop 3% for this year and the U.S. is expected to grow over 3% next year.

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