What about these tough times? Are they tough for everyone? Apparently not; it depends on what business you happen to be in and what you make of the current economic conditions.
Welcome to “Recession 2008.” It’s been a long time coming, but now it’s here. Should we be happy or sad about it? I guess that depends on a number of factors, so let’s take a look at them.
First, some definitions:
Recession – When your neighbor loses his job
Depression – When you lose yours
We all know the difference between a recession and a depression. A recession is when your neighbor loses his job; a depression is when you lose yours. But a recession makes people crawl into a foxhole to wait for the war to pass by. The cycle generally lasts for a year or more. It usually takes about that long for Joe Average to figure out he isn’t going to lose his job. During the time he’s in fear and not buying anything, a strange phenomenon is taking place. He’s actually paying down his credit card and other debt. As soon as he again feels confident that his job is OK, he opens the floodgates and begins to spend, and pretty heavily at that. After all, he has to catch up on all those things he wanted to buy.