It's OFFICIAL: The Recession Began In February!

[En_Sabah_Nur 9,366]

New York(CNN Business) - “ The longest economic expansion in American history is officially over. The National Bureau of Economic Research declared Monday that the recession began in February.

The economy collapsed so rapidly that NBER wasted no time in announcing a recession, a stark contrast to previous downturns when the body took upwards of a year to declare what most people already knew. This was the fastest that NBER has declared any recession since the group began formal announcements in 1979.

Social distancing requirements imposed to fight the pandemic have crushed broad swaths of the US economy, from airlines and cruise ships to restaurants and Broadway shows. 

"The unprecedented magnitude of the decline in employment and production, and its broad reach across the entire economy, warrants the designation of this episode as a recession, even if it turns out to be briefer than earlier contractions," NBER wrote. 

More than 42 million Americans have filed for unemployment benefits. Major companies including JCPenney, J.Crew and Hertz have filed for bankruptcy. And economists are predicting GDP imploded at an annualized rate of 40% during the second quarter.

The pandemic marked an end to the mediocre but long recovery from the Great Recession. In July 2019, that expansion officially became thelongest period of uninterrupted growth in US history dating back to 1854. It spanned 128 months, easily breaking the prior record of 120 months set between March 1991 and March 2001 during the dotcom boom.

Normally, economists define a recession as consecutive quarters of negative growth. The United States already endured one quarter of a shrinking economy, with GDP dropping by 5% during the first quarter. 

NBER decided not to wait for a second quarter of a contracting economy, although it is widely expected to happen during the second quarter. The body also declared that while the economy peaked on a monthly basis in February, the quarterly peak happened in the fourth quarter. That disparity "reflects the unusual nature of this recession," NBER said. 

"The economy contracted so sharply in March," NBER said, that by the first quarter GDP and employment was "significantly below" the levels of the fourth quarter of 2019. ”
 

CONTINUE @ https://www.google.com/amp/s/amp.cnn.com/cnn/2020/06/08/economy/recession-economy-coronavirus-nber/index.html 

 

[En_Sabah_Nur 9,366]

What do you think @Economy?? 🤔🤔
 

[Terrence 1,206]

Oh we really needed confirmation after the biggest unemployment numbers by miles in US history?

 

Color me shocked.

[Economy 52,919]

11 minutes ago, En_Sabah_Nur said:

What do you think @Economy?? 🤔🤔
 

That it's obvious it was gonna happen to pretty much every single country

 

Unemployment here in Canada is the highest since Post World War 2

[En_Sabah_Nur 9,366]

Just now, Economy said:

That it's obvious it was gonna happen to pretty much every single country

 

Unemployment here in Canada is the highest since Post World War 2

Trump says now that the country is back open, the economy will start ROARING again really fast!  🙄😒

 

[Economy 52,919]

9 minutes ago, En_Sabah_Nur said:

Trump says now that the country is back open, the economy will start ROARING again really fast!  🙄😒

 

That's one of those half truths politicians play with

 

The economy will surge back in growth because stuff that was closed will reopen

 

Here in Canada they are expecting the next quarter to grow 20%. That's like unheard of to get growth that strong (4% is already rare)

 

But 20% growth after the economy shrank 40% means the economy will still be sh*tty cuz it will still be worse than before pandemic

 

So in technical terms Trump is probably right that the economy will surge both in GDP and Employment.

 

But saying that will also mislead people into thinking the economy will quickly be back to normal. It won't. It's gonna take a fair bit of time cuz the damage was severe

[PunkTheFunk 125,719]

@Economy you really f*cked up this time