money matters

[manies]

what excactly is recession

[Ethel]

The country has less money, there is no economic growth. The stock market falls, making what we do have worth less.

People don't spend as much, so businesses don't make so much, people lose jobs, can't pay their bills, have the houses repossessed.

In a nutshell.

[Whickerman]

The definition is :"A period of general economic decline; specifically, a decline in GDP for two or more consecutive quarters."

It is reflected in exactly the manner Ethel mentions, but I personally think that a large percentage of economic downturn is caused by the media spouting doom and gloom, making people more cautious about spending and it becomes a self-fulfilling prophecy.

[manies]

thank u very much - makers things clearer!