What to Do BEFORE Recession Hits

Nobody wants to find themselves caught up in a tight financial situation because of the turbulent economy. In times of recession, nearly everyone wishes they had set aside some extra money for a rainy day. As the saying goes, “Hindsight is 20/20.” The good news is that there are steps that you can take to safeguard yourself against an economic crisis. Although a recession is a normal part of the economic cycle, there is no reason for you to suffer when the gross national product begins to fall. Take a few simple steps before the numbers start to fall to stay ahead of the curve and you will be able to ride out the recession with no problem.

The first thing you can do is to protect your job security. Move toward an industry that is unlikely to experience reductions in work force needs. Then, find multiple streams of income. If you are not working, start looking. If you work part-time, ask for more hours. If you already work full time, consider looking for a second job. Increasing the number of directions of the income that you receive will protect you in the event of a layoff or labor cutback. You can also begin to liquefy your assets by reducing portfolio holdings in favor of commodities such as gold and silver, or gems. The trick to starting early is to begin saving money before you need to. Have a system in place for utilizing coupons, specials, sales, and bulk-buying discounts. Being prepared for a recession is about increasing your income while decreasing your output.

For great articles and resources visit http://www.recessionsource.com

Involving Children in Learning About the Recession

Whether they learn about it at school or hear about it from other adults, your child is probably aware that the nation is experiencing a recession. Children, especially young children, may hear adults talk about this topic in a serious tone of voice and fear the idea of a recession. Their concerns are magnified by the fact that they may be unsure about what exactly a recession is and how it will affect the daily lives of their family. You can help combat this uncertainty by explaining some basic facts to your children and involving them in the process of finding solutions to the budget crunches you experience.

Start by giving your child an age appropriate definition of what a recession actually means. You may need to begin by doing some homework to educate yourself so that you are prepared to answer your child’s questions. Once he or she is closer to understanding the economic trouble that occurs during a recession, give them opportunities to find ways to save or earn extra money so that they feel they are making a valid contribution. You can help them sell items they don’t use anymore, such as toys or books. Encourage their ideas for making money, whether they decide to set up a lemonade stand or want to sell colored pictures to friends and family. Older children can offer to mow lawns or babysit on the weekends to bring in extra cash. Help them find a practical way to spend their money, such as buying things that they need every day, like paper for school, or new shoes. You can also let them help you look for coupons, sales, and other ways to save.

For great articles and resources visit http://www.recessionsource.com

What to Expect During a Recession

The term “recession” is used frequently these days, by financial analysts and politicians, news anchors, and by the people you encounter every day around the water cooler at the office, at baseball games and in elevators. You may already know that the definition of a recession is a period of economic negative real economic growth (measured using the GDP) for two or more successive quarters of a year. Even if you are familiar with the dictionary definition, do you have an idea about what that means in terms of the day in, day out lives of you and your family members? There are several indicators used to help measure the degree and duration of a recession. You may be able to reduce some of the anxiety that can accompany turbulent economic times by having an idea about what is to be expected during a period of recession.

One of the first changes that can be expected is a change in the unemployment rate. As businesses begin to lose money due to rapid deflation, they are forced to lay off employees, leaving more people without jobs. Individuals who are able to maintain employment will likely experience a drop in income. Both of these statistics have rebounded, historically, after a recession during the period known as the recovery period.

As prices drift downward, commodities become more affordable, starting up an increase in consumer spending, which drives the cycle upward again. Think about ways that the recession could affect your business and family and brainstorm ideas about what you will do once the recession is in full swing.

Use Organization to Beat the Recession

If you kept track of every penny that you spent over the course of a month, you would probably be surprised how the money adds up. You may feel that you don’t spend any money unnecessarily, when in fact, small purchases stack up to become a larger percentage of your budget than you are probably aware. You can beat the recession by reducing these minor expenses and becoming more aware of the money you spend. Try a simple activity to see for yourself. For one week, carry a small notebook around and track your daily spending habits. Write down everything, including major purchases, automatic purchases, routine purchases like bills and groceries, and even pocket change used to buy a soda.

When you realize how much money you spend without giving it a second thought, you may be able to save more of your hard-earned cash, just by being aware that you are spending it. The next time you are at the store, make a conscious effort to buy only the things you need and cut costs at every opportunity.

One of the best recession organization tips is to hang onto your receipts, rebates, coupons and any other paperwork that may come in handy for saving a buck here and there. Keep track of all work-related expenses and charitable donations for relief around tax time. You can also organize your pantry and supply cabinets in order to avoid buying duplicate items. Putting everything in its place will allow you to put your hands on it when you need it.

For great articles and resources visit http://www.recessionsource.com

The Government or Its Citizens – Who is to Blame?

Like many other American citizens, you may realize that the country is in a state of economic recession, with even greater financial turbulence on the horizon if effective intervention isn’t enacted swiftly. Everyone with a stake in the financial market, from corporations to small businesses to independent consumers, is looking to tighten belts and cut costs in hopes of staving off economic ruin. During this period of hardship, it is easy to try and place blame in the hands of a single group or event. You may hear conspiracy theories that range from the possible to the ridiculous as people search for answers. Some individuals shake their fist at big business as the culprit, citing CEO fraud, enormous severance packages for unscrupulous executives and extravagant and unnecessary expenditures (like a $40,000 bill for a weekend “retreat”) as evidence. Others maintain that the war in Iraq is the root of the problem. Still a third camp places blame with the oil companies and those who profit from the oil industry. Individual consumers are also looked at beneath the microscope as they continue driving credit card debt through the roof and living lifestyles much beyond their means. In reality, the cause of the recession hinges on several different factors that interact together to create the troubling situation the country now faces. Whether or not you choose to assign blame to one of these causes or the dozens of others that have been proposed, the truth is that everyone will need to work together to keep the recession from worsening.

The Politics of Recession

When it is time to vote the new Chief Executive Officer of the United States into the White House, you can bet the topic of recession comes up in lean economic times. The way that each potential presidential candidate handles the issue of American finances is scrutinized by discerning American citizens, trying to make sure they vote for the candidate that is best equipped to handle the turbulent economic climate. Candidates with strong financial experience may be favored, while those who typically avoid talking about the issue may be equated to an ostrich sticking their head in the sand to keep from having to talk about a difficult topic. The goal is to keep a financial downward spiral from taking place to begin with. Once a recession is in full force, it is the job of the nation’s leader to promote policies that will avoid rapid deflation, mass unemployment, bankruptcies of large corporations and other potentially devastating economic triggers. The way that the President of the United States addresses the economic challenges during times of recession will be remembered for years to come. President Hoover is widely known for his policies that created Hoovervilles, while President Roosevelt addressed a concerned nation through his series of “fireside chats.” However the President chooses to handle times of economic crisis, you can be certain that millions of Americans and many of our neighbor nations will be paying close attention. The voters will be making sure that their elected leader is paying attention, and you should too!

Hope For Small Businesses During The Recession

If you are like the millions of Americans concerned about your small business during the economic recession, you are probably doing everything you can think of to protect your investments. When you have spent precious time and energy building a small business from scratch, you don’t want to risk losing everything when the economy begins to tighten. As consumers become more hesitant to spend money on products and services, you have probably considered options to keep your business afloat. The good news is that there are plenty of ways that you can make your business as efficient as it can be and create a buffer that will help you make it to the other side of the current money crunch.

Now is the time to take the steps that will help you weather the troubled economic times ahead. If you don’t already have an online presence, there is no better time to start building your business’s web site. Putting some time and effort into establishing an online store will pay off down the road, as more consumers begin shopping online and hunting around for the best deals. You can also barter with your suppliers and work to conserve and make the best use of your resources. Not all tips and tricks out there will work for you. Do some research on your own to find the best strategies that you can incorporate. Keeping a document of any good information that you find and sharing it with others can be a great way to learn more about the best ways to recession-proof your small business.

For great articles and resources goto http://www.recessionsource.com

Recession – What Does It Even Mean?

For a while now, the term “recession” has been bantered around as the latest buzz word of choice among news anchors, commentators, and Joe Everyman and his neighbor. People use the term casually to refer to a rough economic patch, gravely to warn about a financial Armageddon, and everywhere in between. What does the word recession actually mean? More importantly, what are the implications of an actual recession for the future of your bank account? If you don’t know the answer to these questions, don’t worry. You are certainly in good company. Casual use of the word likely originates from the dictionary definition, which describes a recession vaguely as “a widespread decline in the gross domestic product (GDP) and employment and trade lasting from six months to a year.” Economists, politicians, and academics use a more structured definition that generally calls for negative real economic growth (measured using the GDP) for two or more successive quarters of a year to term an economic slump a recession.

Some analysts even attribute discussion of a recession as one of the peripheral causes of the recession itself! Is it possible that lamenting skyrocketing food costs and sharing money-saving tips at the water cooler can actually place the country in greater economic distress? Whatever your definition of a recession, troubled economic times leave virtually no one unscathed. Take steps now to safeguard yourself against a recession while there is still time to prepare. In the meantime, make sure that you are not promoting panic by keeping a positive outlook and sharing good news with those around you when you can.

Recession may last 2 years.. Says Professor Roubini

In a recent interview with Bloomberg Television, Professor Roubini who predicted the financial crisis in 2006 said;

”There are significant downside risks still to the market and the economy,”  ”We’re going to be surprised by the severity of the recession and the severity of the financial losses.”

Roubini also said the recession will last 18 to 24 months, driving unemployment to 9%, and already depressed home prices could fall another 15%.

The US government will need to double its purchase of bank stakes and force lenders to eliminate dividends to save them from bankruptcy, Roubini also added.

A recession is broadly defined as more than two quarters of decline in real gross domestic product. For more information on whata recession is visit http://recessionsource.com.

Professor Nouriel Roubini is a Professor of Economics at International Business
Stern School of Business, New York University and is the author of several books, including: Bailouts or Bail-ins? Responding to Financial Crises in Emerging Economies, Political Cycles and the Macro economy, and International Financial Crises and the New International Financial Architecture.

Former Fed Chairman believes US is already in Recession

Comments from former Federal Reserve Chairman Paul Volcker have added more certainty that the US is already in recession. Whilst in Singapore on Tuesday he said;

“The first priority is to stabilize the financial system. It is necessary even though the cost involved is heavy government intrusion in markets that should be private,” he said in a speech at a seminar in Singapore.

“House prices in the U.S. are still declining. There are still more losses to come there. The economy, I believe, is in recession.”

Volker also responded to questions in regards to the massive injections of liquidity by the Federal Reserve, by saying;

“It’s not going to be a problem in the short run. Inflation doesn’t flourish in the face of recession,” he said.

“It’s something we have to worry about when we get out of this recession.”

“I have been around for a while. I have seen a lot of crises but I have never seen anything quite like this one,” Volcker  also said;

“This crisis is an exception. I don’t think we can escape damage to the real economy.”

Paul Volker was chairman of the U.S. central bank between 1979 and 1987 and is credited for battling double-digit inflation that flared up during his his time in the top position.

So now we wait in anticipation to see how the US will allocate the $250 Billion in funds into the banks…but does it really matter… is this another recession that we need to have?