hi everyone Jason Kolinsky so today I
got a great question and it was what is a recession and so one of the things
that’s hard for people to understand is that what we experienced in 2008-2009
was not a normal run-of-the-mill recession that was a recession caused by
a financial crisis it was in a global meltdown of the world economy the
recession was a part of it because when the world was melting down obviously our
economies slowed down and people started losing their jobs and those sort of
things happened which are part of a recession but that is not what they
normally are so a recession is very simple it’s a reset it’s a time where
the economy and we’ll talk about just the US for this example slows down for
typically two consecutive quarters so it’s where you would actually see that
the growth of our economy which is sometimes measured as GDP or gross
domestic product actually goes negative or goes the other way it’s a contraction
it’s a slowdown another way to define a recession is when you would see that the
unemployment rate goes up one and a half two percent within a year’s time those
are indications of what a recession is it doesn’t mean that when the next
recession comes that there’s going to be a financial crisis and a global meltdown
that’s what we experienced in ’08 but there’s been other recessions that have
occurred over the years and they’re very different so most of the time there’s
some sort of story some sort of issue that leads to the recession or is part of the reason there is a recession but it doesn’t mean the world is coming to an
end so if you’re concerned about what it means when we are when you’re hearing on
the media about the next recession coming don’t automatically think that
that’s going to be ’08 what happened at that time was the second worst
economic condition that this country has ever seen
it was a Black Swan it was out of the norm abnormal so whatever comes down the
pike I’m sure it’ll be something that won’t be fun for everyone and certain
people might lose jobs and maybe the economy slows
down but recessions typically last for a short period of time and then usually
what happens after a recession is a period of economic growth where it leads into a
new good period of growth and the market doing well and people getting jobs and making more money so that’s what a recession is and I think it’s important we talk about it

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