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Recession. Yes, we hear this word constantly in our lives nowadays. We hear this word on the news, at home, everywhere and anywhere. But, what does this word mean?
Well, Merriam-Webster.com defines recession as..."a period of reduced economic activity" (Source: http://www.merriam-webster.com/dictionary/recession).
Sure, sure, but that's just "dictionary language." What about in everyday-when-I'm-living-my-normal-life language? Well, for some teenagers, recession can mean that your parents refusing to buy you a shiny new Ipod Shuffle or people's mood being ruined upon seeing their stocks plummet. Recession is ubiquitous and affects (almost) all of us.
Let's assess a major effect of the recession which can even impact our students' life, the credit crunch. Simply stated, a credit crunch occurs when it is harder to obtain a loan from the bank. For example, when we head off to college, it will be more difficult to get a loan because of stricter requirements and higher interest rates. Hopefully, President Obama has an effective solution for the student loans in the future.
So, the ever probing question is, when will all this end?! Alas, Adam Smith (if he were to be alive right now) probably wouldn't even know. I mean, come on, we're not fortune-tellers. Asking about the end of the recession is like asking a weatherman if its going to rain in five weeks. But, I think the real question is not when the recession will end, but what will end it.
Question of the Post: What do you think will end the recession? Leave a comment to contribute!
Friday, March 13, 2009
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Hey Saloni,
ReplyDeleteThis is Nilesh here. I really like your article. I agree with your point, and it is the unfortunate reality of our lives. And I love the artsiness of your blog. Also, thanks for the counter as it is reallly intersting to watch the debt. I bet that if we all then gave thirty six thousand dollars each (given in a staggered amount), then we would all be saved! Jk, but even so, one can always dream I suppose. And I think the recession will end when budgeting and debts are worked out.
When's your next blog?
ReplyDelete- Nilesh Murali
I'm developing the idea for the next post right now. Hopefully, it will be up by the middle of the week. Also, I was thinking that I might mix it up by having a few political cartoons that will make the blog more interesting. Feel free to make suggestions! In addition, I'm elated that you are so keen to read more! :D
ReplyDelete-Miss Economist
This comment has been removed by a blog administrator.
ReplyDeleteHi Saloni,
ReplyDeleteIts to great to see your interest in this complex subject. Who knows you may be able to solve this conundrum, which even the Fed Chairman is not able to.
When the cause of the problem (recession) is also its effect (credit crunch), the feed back loop results in a economic meltdown that we are going through. This seems like easy problem to fix. We just need to get the banks to start lending!! Sounds easy but our policy makers are clueless about how to get this done.
Do you have any creative idea for Obama and Bernanke to fix the banking sector? Perfect topic for you next blog!!!
Shailesh