And do you think that there will be one soon?
2007-12-12 09:03:11 · 2 answers · asked by Cherry M 2 in Social Science ➔ Economics
An economic recession is when the stock market has three consecutive falls; or when the real-estate market falls for three consecutive years. Since the stock market is liquid we use a shorter frame (3/4 year) vs. real-estate where it hard to move and you can't partially (with ease) liquidate your kitchen for some spare change.
Interestingly, the stock market & real-estate market have "Inverse" relationships. So this means that when the stock market sucks, real-estate (& gold) thirve ... and flip that around with the real-estate market going to hell in a hand basket leading to the stock market (bussiness) gaining more employment, less export, more import, and greater returns. So, as a big picture, it's a zero-sum game ... I guess it's all a perspective to which side u'r rooting for: business growth, or real-esate appreasals.
2007-12-12 09:12:18 · answer #1 · answered by Giggly Giraffe 7 · 1⤊ 0⤋
An economic recession is simply a stagnant economy. Indicators would be deflation, high unemployment, stagnant financial markets, and low consumer consumption.
I do not think there will be one soon. If the real estate bubble doesn't get any worse we will be fine.
2007-12-12 17:12:17 · answer #2 · answered by Anonymous · 1⤊ 0⤋