Talk of a "Depression" before a "Recession" has even been declared....

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Talk of a "Depression" before a "Recession" has even been declared....

Post by TheButcher » March 23rd, 2020, 7:24 pm

This is the first time I have heard the Fed say the word "Depression" even when they have not said the country is in a recession which I suspect it already is. ... index.html
New York (CNN Business)The Federal Reserve is signaling it will do whatever it takes to save the coronavirus-ravaged American economy from a depression.
The US central bank massively accelerated its rescue plans Monday by announcing unlimited bond-buying, three new credit facilities and an upcoming Main Street lending program.
Taken together, the Fed said the new programs will provide up to $300 billion in new financing to an economy getting crushed by the crippling health restrictions aimed at fighting the pandemic. The Fed is going all out to prevent the health crisis from turning into a full-blown financial crisis.
Crucially, the Fed pledged to buy bonds "in the amounts needed" to support markets, signaling there are no bounds to its rescue effort. And the Fed is invoking emergency powers to set up a special entity that will buy corporate bonds. The shackles have been removed...quote]

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Post by aehageman » March 30th, 2020, 11:18 am

One of those issues when you need to know the definitions of the words and how they are frequently misused.

When someone asks if we are in a recession? well they obviously do not know how to go look. It is a mathematical calculation to determine if there is a recession.
A depression is a long recession.

The media is misusing the words for more fear mongering. As is the Governments. Both are using the fear to profit.

Definition Recession

In a 1986 The New York Times article, Commissioner of the Bureau of Labor Statistics Julius Shiskin suggested several rules of thumb for defining a recession, one of which was two consecutive quarters of negative GDP growth.[6] In time, the other rules of thumb were forgotten. Some economists prefer a definition of a 1.5-2 percentage points rise in unemployment within 12 months.[7]

In the United States, the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER) is generally seen as the authority for dating US recessions. The NBER, a private economic research organization, defines an economic recession as: "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales".[8] Almost universally, academics, economists, policy makers, and businesses refer to the determination by the NBER for the precise dating of a recession's onset and end.

In the United Kingdom, recessions are generally defined as two consecutive quarters of negative economic growth, as measured by the seasonal adjusted quarter-on-quarter figures for real GDP.[4][5] The same definition is used by member states of the European Union.[citation needed]

Talk of a "Depression" before a "Recession" has even been declared....

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