Tech Ticker, Recession Started December 2007
Very important to note that two quarters negative GDP is NOT the best way to judge a recession. Liz Ann Sonders, chief investment strategist at Charles Schwab & Co. pointed this out in an interview today on Tech Ticker which is a must view.
From Tech Ticker:
“The National Bureau of Economic Research uses five parameters to determine whether the economy is growing or not:
- Real GDP (inflation-adjusted GDP, that is)
- Industrial Production
- Employment
- Personal Income
- Wholesale/Retail Sales
Four of five of those indicators rolled over late last year and are now showing the economy in a “deep” recession, Sonders says. The good news is the stock market typically turns up about 60% through an economic downturn; the bad news is that it’s unclear whether we’ve reached that point quite yet, and Sonders is understandably worried about the “deleveraging” of both the financial system and consumer’s dependence on debt.”
Video is embedded below, RSS Readers please click through to full post to watch the clip:
Source:
Yahoo Tech Ticker
“Recession Now: It’s deep and its going to last a long time”
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Liz Ann Sonders is hot, right? Not Girl Next Door Playboy Mansion hot, but smart + cute hot.
Everything else is moot. If you or any friend or family member is unemployed, it’s a recession. If the market doesn’t work, it’s a recession. If you lose sh!t, like your house, it’s a depression. Everything else is theoretical gibberish & quasi-economic dork speak.
*Qualifier – I am fluent in quasi-economic dork speak.
Fantastic clip Blain. I agree that 2 quarters negative GDP makes no sense, happy she pointed this out.
Liz Ann Sonders… for the win. Have to love a lady who lays out there