Feb
05
Posted on 02-05-2008 at 03:55pm
This is What a Recession Looks Like
Filed Under (Work & Money, Business & Development) by Jackson Miller on 02-05-2008

While the country is focused on the political races today, the economy is taking a tumble. The Dow has fallen close to 400 points today.

I haven’t found any local bloggers talking about it yet. CNN is the first place I saw news that economists are declaring we are in a recession.

So, on Super Tuesday we get the not so friendly reminder: “It is the economy, stupid”.

Which candidate is going to fix the economy and how?

More from Jim Voorhies:

Today is Wall Street’s worst day in three months (the Dow Jones Industrial Average is down by 370 points today) and coupled with economic news that reports a decline in the service sector (first time in 5 years) of the economy, some economists think we’re now in a recession. (The National Bureau of Economic Research hasn’t made it official, but they never do until it’s months into the recession.) Nashville, with a more diverse economy, has a chance at more restrained impact.

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Comments

Slartibartfast on 5 February, 2008 at 4:45 pm #

By definition, a recession is not related to the stock market at all. Now, the job contraction reports we’ve seen, those tell the recession story.

However, this isn’t what a recession looks like. Let me tell you about the late 70’s nad early 80’s…


jay on 5 February, 2008 at 5:00 pm #

Woohoo! Stock are on sale. Time to buy.


democommie on 6 February, 2008 at 5:40 am #

While the stock market is not tied to a reession, it (and I find this odd, NOT) is often used to tout the strength of the economy when it’s going up, while the rest of the indicators are flat-lines or nose diving.


sadcox on 6 February, 2008 at 8:51 am #

Presidents don’t “fix” economies, unless of course you are using the word “fix” in the same context that a boxing match can be “fixed”.

Markets move at the speed of light, literally. They correct themselves when left unmolested.

I agree with Jay. Everything just went on sale. The same thing happens at The Gap when the weather gets warm and the price of sweaters drops 20%.


Jackson Miller on 6 February, 2008 at 8:56 am #

Jay and sadcox I understand the “went on sale” argument, but if this is a recession like almost every economist now agrees, this is a horrible time to buy.

Buy low is not the same thing as buy on the way down.