If you’ve been thinking about your savings, you’re not alone. The market has been extremely slow lately, and many are concerned that they’ll be out of money in a few months.
In fact, the “short-term” recessionary trend may be the most telling indicator for your savings. The recessionary period has been a particularly hard hit lately because it is one of the few markets that have seen a significant drop in both sales and interest rates. In general we see that we start to see a recessionary period when a stock market drops 20 percent and interest rates rise 100 basis points.
This recessionary period has also been a bit of a “wet spell,” or what economists call “a period of declining real GDP.” The effect of this is that it is much harder for people to borrow money to purchase goods and services. Thus, while there are still plenty of job opportunities, there are fewer and fewer people willing to pay for those opportunities. In other words, because interest rates are so low, it is much harder for people to save more money.
This recessionary period is not only the height of the recession, it is also the height of the decline. The effect of this is that the economy has already begun to shrink. The fact that economists are concerned with this can be seen in the fact that the Federal Reserve has already started a gradual decline in interest rates, a move that it will continue until the end of the recession.
Interest rates are one of the main ways that the economy works. When the Fed lowers rates, it essentially removes the demand for borrowing money from consumers. This makes it easier for businesses to borrow money, and puts more money in the hands of people who have more disposable income. The Fed’s main goal with this is to keep economic growth going and to prevent unemployment from rising too far.
This is a bit of a paradox. When the economy is growing, the Fed is increasing the amount of money that businesses have to borrow. When the economy is weak, it is increasing the amount of money that businesses have to borrow. The economy is growing, so there is more money for businesses to borrow – and the Fed is decreasing the amount that businesses have to borrow.
This is a bit of a conundrum because a lot of economists assume that the recession is a temporary, temporary-but-dangerous-to-the-economy situation. Instead, it is more likely to be the result of a longer-term trend of declining real wages. A lot of economists have theorized that for this to happen, real wages would have to fall by a significant amount for a few years. They’re not the only ones that believe this.
You might remember that the Federal Reserve slashed interest rates to zero in late 2008. The reason for the move was to try to stimulate the economy, but it only worked temporarily. The economy’s slow recovery is still ongoing, and it now appears that it will take a long time for the economy to fully recover.
It all depends on the economy. A recession is defined as a drop in real GDP. When we say real GDP, we mean real dollars, not just real economic growth. Real GDP is the amount of money that has been made by all of us, by businesses and individuals. Real GDP is the amount of money that has been spent by all of us, by businesses and individuals. It is the amount of money that has been printed by the Federal Reserve.
