Why do we have Recessions & How to make money in bad economy?

Part One: What do the Recession mean?

On Jan. 21, 2008, stock prices tumbled around the world. Most analysts attributed a possible recession as the reason for the drop. Three days later, news outlets were already reporting a new economic stimulus package, designed in part to try to prevent a recession.

Then, what do the Recession mean?

A recession may involve simultaneous declines in coincident measures of overall economic activity such as employment, investment, and corporate profits. Recessions may be associated with falling prices (deflation), or, alternatively, sharply rising prices (inflation) in a process known as stagflation. A severe or long recession is referred to as an economic depression.

--Defination of Recession by wikipedia 

Such a fall-off in an economy is characterized by a number of different trends, including:

  • People buying less
  • Factory production decreases
  • Unemployment up to a high level
  • Slump in personal income
  • Stock market goes down for a long time
  • This slow-down has to continue for at least six months

Part One: What do the Recession mean?

Part Two: Why do the Rscessions happen?

Part Three: How to make money during a recession

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