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The economy is cyclical. We've been in an extended boom for some time. As there is no such thing as "The New Economy" a recession will come next.
by tom_rath 18y ago
The economy is cyclical. We've been in an extended boom for some time.
As there is no such thing as "The New Economy" a recession will come next.
- iuguy 18y agoYou're absolutely correct. However what is different is that the upside of the boom (above what it should be) is so high that the correction is at least almost as big a downside. There are two ways that the market correction can occur, a sharp correction would cause many problems, a slow recession would ease the pain somewhat but would take too long. The actions you're seeing in the US, UK, EU and Japan are all designed to lessen the steepness of the drop.