Reminder: A recession is two negative periods of growth in a row

Parent Cafe
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<p>So please stop saying we’re in a recession because, as we learned today, we haven’t experienced one negative period of growth…</p>

<p>[Economy</a> grows by only 0.6 percent in first quarter: Financial News - Yahoo! Finance](<a href=“Yahoo Finance - Stock Market Live, Quotes, Business & Finance News”>Yahoo Finance - Stock Market Live, Quotes, Business & Finance News)</p>

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I’m with Alfred Kahn - let’s just call it a “banana” - either way, it is what it is - and it ain’t pretty.</p>

<p>Various definitions of “recession”:[define:recession</a> - Google Search](<a href=“define:recession - Google Search”>define:recession - Google Search)</p>

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<p>“I’m with Alfred Kahn - let’s just call it a “banana” - either way, it is what it is - and it ain’t pretty.”</p>

<p>Neither is a tornado pretty. They happen on a regular basis, you do the best you can to survive and then you move on and enjoy the interval until the next one. It’s a natural part of life.</p>

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<p>[How</a> to have a recession even without GDP falling - MarketWatch](<a href=“http://www.marketwatch.com/news/story/how-have-recession-even-without/story.aspx?guid={763046C0-872E-4A00-A500-8D29FEF13451}]How”>U.S. could have recession without drop in GDP - MarketWatch)</p>

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<p>After a boom there will be a slowdown, recession or whatever you want to call it. Nobody should be very suprised or have that sky is falling feeling. If you live 80 years you will probably see 8 booms and 8 recessions.</p>

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<p>That’s lovely. Unfortunately the DEFINITION of a recession is two quarters of downward growth.</p>

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<p>I agree with FF and Barrons. (Oh, my! Bookmark this page!)</p>

<p>LaxAttack, read more, learn more.

Your “DEFINITION” was not handed down by God. The NBER is generally considered the most authoritative arbiter of whether we’re in a recession or not. If you read the Marketwatch article you’ll learn about where the GDP comes from, and how it can be a misleading indicator of economic activity (particularly with regard to inventory growth.)</p>

<p>It’s a banana.</p>

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<p>I heard one fellow say a recession is if your neighbor loses his job. A depression is when you lose your job!
. I’m sure thats not the definition one might find in a textbook.</p>

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<p>I deny that it’s a banana. The President very clearly stated in his press conference that it’s a kumquat. Heavens, don’t you listen to your elected overlords? Of course, in six weeks when he tells us it is neither a kumquat nor a banana but a durian (famous for smelling like stinky gym socks), that will be true as well.</p>

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<p>Consumer spending is up!</p>

<p>[Oh</a> wait](<a href=“http://ap.google.com/article/ALeqM5jsanM66tszKz1zFq0LOG4XvWS7zAD90CT1I00]Oh”>http://ap.google.com/article/ALeqM5jsanM66tszKz1zFq0LOG4XvWS7zAD90CT1I00)</p>

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<p>Not a recession but …</p>

<p>[Linens</a> 'n Things files for bankruptcy, plans to shut 120 stores - MarketWatch](<a href=“http://www.marketwatch.com/news/story/linens-n-things-files-bankruptcy/story.aspx?guid={38114D34-4943-4190-AF04-EA97AE99EAEB}]Linens”>Linens 'n Things files for bankruptcy protection - MarketWatch)</p>

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<p>The core problem–LBO’s and too much debt financing. Thanks Wall Street. Debt is fine so long as everything is good but a slight downturn and they crash and burn taking many good folks with them.</p>

<p>“Linens 'n Things, weighted by an increasing debt load since Apollo’s leveraged buyout, followed other home goods or furniture retailers – from Bombay Co. to Wickes Furniture – that have filed for bankruptcy protection in the past year, victims of the slowing economy and consumer spending.”</p>