Why are we still calling this a recession?
From the Wikipedia and Economic Depression is: A depression is a sustained, long downturn in one or more economies. Considered a rare but extreme form of recession, a depression is characterized by abnormal increases in unemployment, restriction of credit, shrinking output and investment, numerous bankruptcies, reduced amounts of trade and commerce, as well as highly volatile relative currency value fluctuations, mostly devaluations. Price deflation or hyperinflation are also common elements of a depression.
- The Commerce department releases that in Q4 2008 the economy contracted at 6.2 percent. Predictions that in 2009 the economy will be the worst since 1946.
- The horribly underestimated jobless rate is 7.6 percent. Likely to hit 9 percent.
- California’s jobless rate is 10.1 percent in January.
- The Dow is at it’s lowest point since 1997 and dropping.
- 40% of all subprime mortgages issued from 2005 – 2007 are expected to default
- Indicators of price deflation are showing.
- Mortgages, credit cards, lines of credit all slashed.
- Bankruptcies surge 40%
- US exports fall 20%. Japanese exports fall 46%.