Tuesday, March 11, 2008

We're in a Recession!!! Not!

Headlines across the country are screaming doom and gloom about the economy, claiming we are in a recession. This is impossible. A recession, by definition, is two consecutive quarters of negative growth. Since we have not even had one quarter of negative growth and probably won't, it's impossible for anyone to declare that we are in a recession.

Don't buy into the doom, and wait until the facts make the claims evident. Whether you are talking about economics or global warming the same logic applies

Update: It must be true - we have a consensus! Never mind gathering data.

2 comments:

Vernon said...

Paul,

You are absolutely correct. There are too many experts claiming recession without any facts to go with it. I'm still flipping houses in this market and doing just fine.

Great advice.

Paul said...

The company I've worked for the last 30 years announced last week that we were going to beat earnings expectations. Historically, when the economy sneezes, we have caught a cold, so this to me indicates that the first quarter will not be one with negative growth.