Analysts say to tell if we're in a recession, there must first be two consecutive quarters of economic slowdown. Basically, it means consumers don't spend money for six straight months. The key here says Dr. Hashem Dezhbakhsh of Emory University's Economics Department is the word "consecutive."
But there's more to it says Dezhbakhsh.
"Assume that the value of the homes have gone down, the stock market is not doing well, when the amount of goods and services that we have in the economy declines, the amount that is produced, employment rate increases, the economy slows down."So, what makes a depression rather than a recession? Dezhbaksh likens a recession to the common cold. A depression he says is more like the flu.
"Depression is first of all a very serious illness for the economy, and it can last long and it affects a larger number of people."Third quarter numbers are just out and they don't look so good for some Georgia companies. Delta Airlines blames its 50 million dollar loss on rising fuel costs. Coca-Cola did well overseas, but not so well domestically. And, earnings for Newell Rubbermaid are down, again blame petroleum prices. And, experts say we should be concerned. But this year there haven't been two consecutive quarters of economic slowdown.
So, to immediately kick start the economy, pick up the latest Hannah Montana CD. For long term investment, Dezhbaksh says stop by your bank and invest in another kind of CD.
