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[QUOTE=Admin;6488][FONT=Verdana][SIZE=2][COLOR=#111111][B][U]What is a Recession?[/U][/B][/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111]In economics, the term  recession is generally used to describe a situation in which a country's  GDP, or gross domestic product, sustains a negative growth factor for  at least 2 consecutive quarters. I say generally because recession can  be defined differently by different economists. Just as there is an  agency to define the measure of inflation; the official agency in charge  of declaring that the economy is in a state of recession is the National  Bureau of Economic Research (NBER). NBER's definition of recession is  a bit more vague than the standard one that was described above; they  define recession as a "significant decline in economic activity  lasting more than a few months". For this reason, the official  designation of recession may not come until after we are in a recession  for six months or even longer. Some economists also suggest that a recession  occurs when the natural growth rate in GDP is less than the average  of 2%. Typically, a normal economic recession lasts for approximately  1 year.[/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111][B][U]Causes of Economic  Recession[/U][/B][/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]This is another staunchly  debated topic; but the general consensus is that a recession is primarily  caused by the actions taken to control the money supply in the economy.  The Federal Reserve is responsible for maintaining an ideal balance  between money supply, interest rates, and inflation. When the Fed loses  balance in this equation, the economy can spiral out of control, forcing  it to correct itself. This is precisely what we have seen in 2007, where  the Feds monetary policy of injecting tremendous amounts of money supply  into the money market has kept interest rates lower while inflation  continues to rise. This, coupled with relaxed policies in lending practices  making it easy to borrow money; the economic activity became unsustainable  resulting in the economy coming to a near halt. It is also said that  recession can be caused by factors that stunt short term growth in the  economy, such as spiking oil prices or war. However, these are mostly  short term in nature and tend to correct themselves in a quicker manner  than the full blown recessions that have occurred in the past. 
[/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111][B][U]Effects of a  Recession[/U][/B][/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]An economic recession  can usually be spotted before it happens. There is a tendency to see  the economic landscape changing in quarters preceding the actual onset.  While the growth in GDP will still be present, it will show signs of  sputtering and you will see higher levels of unemployment, decline in  housing prices, decline in the stock market, and business expansion  plans being put on hold. When the economy sees extended periods of economic  recession, the economy can be referred to as being in an economic depression.[/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111][B][U]US Manufacturing  Activity Falls To 26-year Low[/U][/B][/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]Monday, November 3rd  2008[/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111]A key index of the  nation's manufacturing activity fell to a 26-year low, sliding into  recession territory, according to a purchasing managers group.[/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]The Institute for Supply  Management's (ISM) said Monday that its manufacturing index tumbled  to 38.9 in October from 43.5 in September. It was the lowest reading  since September 1982, when the index registered 38.8. Economists were  expecting a reading of 42, according to a survey conducted by Briefing.com.[/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111][B][U]Top Economists  See US Recession Through 2009[/U][/B][/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]Monday, November 3rd  2008 [/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111]A survey of top economists  released Monday shows that the vast majority of them believe the economy  has fallen into a recession that will continue throughout all of 2009.[/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]According to the National  Association of Business Economists, 90% of the 102 members responding  were more pessimistic about the economy than they had been in July.[/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]The economists indicated  that a recession is likely to continue at least through the end of next  year, with 79% saying the economy will grow less than 1% and 38% saying  the economy will shrink next year.[/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111][B][U]U.S. GDP Contracts  .03%[/U][/B][/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]Thursday, October 30th  2008 [/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111]The economy suffered  its biggest decline since 2001 in the third quarter, ushering in what  may be the worst recession in a quarter century and boosting the chances  of Barack Obama and his fellow Democrats in next week's elections.[/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]Gross domestic product  contracted at a 0.3 percent annual pace, less than forecast, a Commerce  Department report showed today in Washington. The last major economic  data before the election also showed that a record two-decade consumer  spending boom ended last quarter as the credit crunch deepened.[/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111][B][U]Fed Cuts Rate  to 1% to Avert Prolonged Recession[/U][/B][/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]Wednesday, October  29th 2008 [/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111]The Federal Reserve  cut its benchmark interest rate by half a percentage point to 1 percent,  matching a half-century low, in an effort to avert the worst U.S. economic  downturn in the postwar era.[/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111][B][U]Stocks Face Worldwide  Recession Fears[/U][/B][/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]Friday, October 24th  2008 [/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111]Stocks tumbled Friday,  although they managed to close off session lows, as Wall Street joined  a worldwide market slump on bets that a recession is imminent - if not  already in place.[/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]According to early  tallies, the Dow Jones industrial average fell 312 points or 3.6%.[/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]The Dow slumped as  much as 504 points in the morning, but came back to within 112 points  of breakeven in the final hours before falling back again.[/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]The Standard &  Poor's 500 index fell 3.5% and the Nasdaq composite slid 3.2%. All three  indexes closed at fresh five-year lows.[/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111][B][U]World Bank Stocks  Fall[/U][/B][/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]Thursday, October 23rd  2008 [/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111]Banks stocks fell worldwide  on Thursday as concerns swelled that soaring loan losses, tight credit  and deteriorating economies would overwhelm lenders' efforts to cut  costs and preserve capital.[/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]European bank shares  tumbled to an 11-year low, and U.S. banks approached a 12-year low.[/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]Goldman Sachs Group  Inc set plans to cut 3,300 jobs, or 10 percent of its workforce, people  familiar with the plan said, as the Wall Street stalwart copes with  an expected downturn in trading and investment banking results.[/COLOR][/SIZE][/FONT] 
 
 [FONT=Verdana][SIZE=2][COLOR=#111111][B][U]U.S. Retail Sales  Report "Simply Disturbing"[/U][/B][/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]Wednesday, October  15th 2008 [/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111]Economists say the  results of the U.S. retail sales report were worse than already pessimistic  expectations, and will put consumer spending on the path to shrinking  for the first time since 1991."We have a recession on our hands,"  said Jennifer Lee, economist at BMO Capital Markets, who noted the 1.2%  drop in the headline is the worst monthly fall since June 2004.[/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111][B][U]Fed Joins Worldwide  Bank Emergency Rate Cut[/U][/B][/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]Wednesday, October  8th 2008 [/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111]The Federal Reserve,  working in coordination with other central banks worldwide, enacted  an emergency interest rate cut on Wednesday.[/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]The Fed lowered its  fed funds rate by a half percentage point to 1.5%. The central bank's  statement said the move was necessary because of the worsening crisis  in global financial markets.[/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]"The recent intensification  of the financial crisis has augmented the downside risks to growth and  thus has diminished further the upside risks to price stability,"  the Fed said.[/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111][B][U]Dow Hits 5-year  Low After Fed Action[/U][/B][/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]Tuesday, October 7th  2008 [/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111]Wall Street's drubbing  continued Tuesday, with a 500-point loss bringing the Dow's two-day  slump to nearly 900 points, as the Federal Reserve's plan to loosen  credit markets failed to temper investor pessimism. [/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]Fed Chairman Ben Bernanke's  dour economic outlook in an afternoon speech added to the day's weakness.  And a report showed consumer borrowing in August fell for the first  time since January 1998. The Dow Jones industrial average lost 508 points  or 5.1%, closing at the lowest point since Sept. 30, 2003.[/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111][B][U]Dow falls below  10,000[/U][/B][/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]Monday, October 6th  2008 [/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=2][COLOR=#111111]Stocks tumbled Monday,  with the Dow Jones industrial average falling below 10,000 for the first  time in nearly four years, as European governments' rush to prop up  failing financial firms underscored the global reach of the credit crunch.[/COLOR][/SIZE][/FONT]
 [FONT=Verdana][SIZE=2][COLOR=#111111]Credit markets remained  tight, with two key measures of bank jitters hitting an all-time high.  Treasurys rallied, lowering the corresponding yields as investors sought  safety in government debt. Gold rallied for the same reason. Oil dipped.  The dollar was mixed versus other major currencies.[/COLOR][/SIZE][/FONT]

[FONT=Verdana][SIZE=3][COLOR=#857733][B]As current trends  continue we can expect...[/B] 
[/COLOR][/SIZE][/FONT][FONT=Verdana][SIZE=3][COLOR=#687733][IMG]https://mail.google.com/mail/?name=b173ed14aa5029fd.jpg&attid=0.1&disp=vahi&view=att&th=11d667ee7039de74[/IMG][/COLOR][/SIZE][/FONT][FONT=Verdana][SIZE=3][COLOR=#857733]$5.00/Gallon Gasoline Nationwide  in 2008 
[/COLOR][/SIZE][/FONT][FONT=Verdana][SIZE=3][COLOR=#687733][IMG]https://mail.google.com/mail/?name=b173ed14aa5029fd.jpg&attid=0.1&disp=vahi&view=att&th=11d667ee7039de74[/IMG][/COLOR][/SIZE][/FONT][FONT=Verdana][SIZE=3][COLOR=#857733]Major Stock Market Losses and  Market Volatility & Credit Crunch 
[/COLOR][/SIZE][/FONT][FONT=Verdana][SIZE=3][COLOR=#687733][IMG]https://mail.google.com/mail/?name=b173ed14aa5029fd.jpg&attid=0.1&disp=vahi&view=att&th=11d667ee7039de74[/IMG][/COLOR][/SIZE][/FONT][FONT=Verdana][SIZE=3][COLOR=#857733]Record Numbers of Home Foreclosures  Nationwide 
[/COLOR][/SIZE][/FONT][FONT=Verdana][SIZE=3][COLOR=#687733][IMG]https://mail.google.com/mail/?name=b173ed14aa5029fd.jpg&attid=0.1&disp=vahi&view=att&th=11d667ee7039de74[/IMG][/COLOR][/SIZE][/FONT][FONT=Verdana][SIZE=3][COLOR=#857733]Large Layoffs and Bankruptcies  at Top U.S. Companies[/COLOR][/SIZE][/FONT][/QUOTE]

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