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U.S. Markets: Recession or depression

Posted February 27, 2008

"Are we even in a recession now? That’s the current debate, but it’s not exactly timely, more like yesterday’s news. It all boils down to exactly whose statistics you trust." — Russell McDougal

by Russell McDougal

Baltimore – (TFN):  It’s best not to mention this particular word in politically correct company. The “R” word is just now being whispered here and there (no, I’m not talking about the Democrats or the Republicans - aka Demopublicans). Just in case, you should be prepared ahead of time should the “R” word morph into the “D” word.

For those of you wondering what in the world I’m talking about, here’s a commonly accepted definition of an economic Depression, the “D” word:

“A sustained economic recession in which a nation's Gross National Product (GNP) is falling and marked by low production and sales and a high rate of business failures and unemployment”

I am a student of economics, money, and history. There is no doubt in my mind we are in perilous times per all three of these categories. You can let Washington and New York tell you what to think, or you can think for yourself.

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Are we even in a recession now? That’s the current debate, but it’s not exactly timely, more like yesterday’s news. It all boils down to exactly whose statistics you trust. The majority of the U.S. investing public lives and dies by the daily and weekly economic pronouncements coming from the NY/DC axis of weasels. Pavlov’s dogs were untrained compared to this gang of groupies.

Let’s parse the recession/depression scenario and you can be the judge of exactly where we now stand. Read on to find a chart of GDP growth in the last 25 years and learn if we've reached depression levels.

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