3 ms·

The economy was horrible for a handful of years, and when that was over, like a rubber band, the economy bounced up. This created a bubble / mini-bubble, but n

The economy was horrible for a handful of years, and when that was over, like a rubber band, the economy bounced up. This created a bubble / mini-bubble, but now that the bounce has possible finished what we're seeing is possibly more normal growth than anything. The mentality of a market slowing down being a depression or a recession is odd to me. The market slowing down leading to a depression, isn't as odd, because it can be at times a precursor. While that may be the case here, it is also entirely possible the market is simply normalizing from previous volatile times.

maxerickson 7y ago
The "recession" that economists use is just a technical term for a decline in activity.
- proverbialbunny 7y ago
  Any decline in activity might be what news reporters are sensationalizing the word recession into, but that's not the proper economic definition of the word recession. >A recession is a macroeconomic term that refers to a significant decline in general economic activity in a designated region. It is typically recognized after two consecutive quarters of economic decline, as reflected by GDP in conjunction with monthly indicators like employment. Recessions are officially declared in the U.S. by a committee of experts at the National Bureau of Economic Research (NBER), who determines the peak and subsequent trough of the business cycle which demonstrates the recession. https://www.investopedia.com/terms/r/recession.asp https://www.investopedia.com/terms/r/recession.asp To dive in deeper: I don't have a proper definition of "economic decline" but as far as I am aware it means, not a slowing economy, but a dropping economy. eg, the market going down, or unemployment rising.
legulere 7y ago
The current economic downturn is pretty much global and hits even places that weren’t affected that much by the las economic crisis (Germany for instance)
- xbmcuser 7y ago
  Yeah the world economy has started stagnating feels like it is tethering on the edge. After talking to our suppliers and customers in about 12-13 asian countries seems like all of them are holding their breath waiting for something to happen. Most have curtailed their current and future investments for now ironically if everyone does that it will bring about what they have started expecting.
  - proverbialbunny 7y ago
    That makes sense that people in Asia would feel that way. With the tariffs China is being hit the worst, and it's probably rippling to that general region. Also, it makes sense Germany is slowing. Germany's economy is strongly based on higher end exports, but with the drama with Brexit, and US tariffs, Germany is going to be mildly hit, but in the long run, asia has slowly been exporting higher end products. Anecdotal but, 5 years ago I'd buy German made speakers, but today the same companies are manufacturing them in China. Germany is trying to transition to white collar and has been for a few years now, trying to offer good incentives for software engineers to move to Germany.

maxerickson 7y ago

The "recession" that economists use is just a technical term for a decline in activity.

proverbialbunny 7y ago
Any decline in activity might be what news reporters are sensationalizing the word recession into, but that's not the proper economic definition of the word recession. >A recession is a macroeconomic term that refers to a significant decline in general economic activity in a designated region. It is typically recognized after two consecutive quarters of economic decline, as reflected by GDP in conjunction with monthly indicators like employment. Recessions are officially declared in the U.S. by a committee of experts at the National Bureau of Economic Research (NBER), who determines the peak and subsequent trough of the business cycle which demonstrates the recession. https://www.investopedia.com/terms/r/recession.asp https://www.investopedia.com/terms/r/recession.asp To dive in deeper: I don't have a proper definition of "economic decline" but as far as I am aware it means, not a slowing economy, but a dropping economy. eg, the market going down, or unemployment rising.

legulere 7y ago

The current economic downturn is pretty much global and hits even places that weren’t affected that much by the las economic crisis (Germany for instance)

xbmcuser 7y ago
Yeah the world economy has started stagnating feels like it is tethering on the edge. After talking to our suppliers and customers in about 12-13 asian countries seems like all of them are holding their breath waiting for something to happen. Most have curtailed their current and future investments for now ironically if everyone does that it will bring about what they have started expecting.
- proverbialbunny 7y ago
  That makes sense that people in Asia would feel that way. With the tariffs China is being hit the worst, and it's probably rippling to that general region. Also, it makes sense Germany is slowing. Germany's economy is strongly based on higher end exports, but with the drama with Brexit, and US tariffs, Germany is going to be mildly hit, but in the long run, asia has slowly been exporting higher end products. Anecdotal but, 5 years ago I'd buy German made speakers, but today the same companies are manufacturing them in China. Germany is trying to transition to white collar and has been for a few years now, trying to offer good incentives for software engineers to move to Germany.