March 31st,2008

Recession? What Recession?

By Kelly Erb

Consumer confidence in the US fell in March to 69.5 in March, the lowest since February 1992. In February 2008, US employers released more than 63,000 employees, the most in five years. And currently, the US dollar is struggling against the yen, the pound and the euro.

Yet, President Bush has declared that we are not in a recession. We are in a “slow down.”

It would be easy to point fingers and say that the President is out of touch - and trust me, there are plenty of folks ready to do so. But what if he’s right? The definition of recession changes depending upon which economist is judging - and many believe that you can’t tell unless and until you are well into a recession.

So are we or aren’t we? The Business Channel took on the “r” word - with some surprising results!

Miranda offers the answer to the perplexing question “What IS a recession, anyway?” at Yielding Wealth.

At Leadership Turn, Miki wonders how real the recession is considering that the numbers don’t support the supposed expansion preceding it.

Mary Emma at Home Biz Notes notes that whether we’re truly entering a recession or not, due to the higher price of oil, home business owners must become creative to help customers and make sales.

At Project Management 411, Bob similarly ponders whether we’re in A Long, Ugly, Deep Recession? He also questions whether this talk of recession is a self fulfilling prophecy.

Darlene at Interview Chatter blogs that recession is a real possibility if not a reality for us. If you are not working and you need a job, consider getting a government job. There is definitely some job security if you can get your foot in the door.

It’s not just careers that are affected in tough economic times. As a college student, Jim at BossHatch tackles the idea of Paying for College.

Jennifer at My Organized Biz helps you stay on top of your finances during difficult times by having a kitchen table financial summit.

Freelancers worry, too. Rico at Contract Worker examines How the US Recession Affects All Freelancers.

Jennifer notes how the recession is affecting the restaurant industry over at one of our newest additions to the channel, Daily Blender. Jean reacts to Jennifer’s story at Small Business Boomers.

It’s just not for profit corporations that wonder about the effect of a slowing economy. Tom at the 501(c)Files shares how The Nonprofit Sector Girds for the R-Word.

What will it take to turn the economy around? Thursday at One Vote Matters ponders politics and the future of economic policy.

At Successful Blog, Liz promotes the power of positive thinking during tough times, advising How to Think Like a Millionaire and Be What You Want to Be.

Just because you think like a millionaire doesn’t mean that you have to spend like one. Ren at Accounting Solver questions whether you save or spend money now. Ren also notes that the recession isn’t just hitting the US markets - read his series to find out how the what’s happening to overseas Filipino workers, their remittances and the question of trade dependence.

At Doing Biz Abroad, Chris also questions what the US recession would mean globally. He determines that The Dollar Has Had Its Day.

And Bridget over at Biz Chicks Rule notes that other countries are taking this opportunity to encourage new businesses: Moms in the UK Are Given Cash Incentives to Start Their Own Businesses.

At Digital Money World, Benson notes that there are some positive outcomes to a weakening market. Some commodities are more valuable now than before - like gold.

And it’s not all bad news in the housing market either (really?!). Dan at Property Crossroads shares a bit of good housing news. Blain at Talk Stock Trading reports that stocks reacted favorably to interest cuts - that’s something, right?

Taxgirl defines the “r” word a little differently - not recession but rebates, rebates and more rebates. Find out when to expect your rebate check, who doesn’t qualify for the rebate check and how much the economic stimulus package is really costing Americans.

Despite the economic stimulus package, Susan at Brandcurve believes that Retailers Shouldn’t Expect a Bump in Sales from IRS Rebate Checks. Not such great news considering that was the intent of the economic stimulus package to begin with…

So finally, something to make you smile among the grim news - at Biz Levity, Mark delivers a delightfully satiric take on economic indicators.

Whew. That’s quite a list. So what do you think? Recession, slow down or just a bad run?

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The Conversation

Gayla McCord on March 31st, 2008 at 13:52

great roundup Kelly! This is a topic that’s weighing so heavy on so many minds these days - it’s nice to see people talking!

Is Education Important? on March 31st, 2008 at 13:55

[…] talk of recession increases, I’m hearing more and more folks question the merits of higher education. I have to say, I […]

Benson on March 31st, 2008 at 15:26

it’s like a mini b5 business RSS here!

Tracee Sioux on March 31st, 2008 at 16:35

Wait don’t forget the Blog Fabulous take - Recession or Sanity? Is it really a recession if the previous “spending” was really just “charging” and now it’s time to pay the piper with interest? http://www.blogfabulous.com/recession-or-sanity/

Recession Arguments on B5media on March 31st, 2008 at 16:40

[…] Erb, our own Tax Girl, has done a round up of all the recession chatter around b5media in Recession? What Recession?. There’s lots of takes on it. You should check a few theories out cause well, it effects […]

Kelly on March 31st, 2008 at 16:47

Yep - there was lots of channel participation this round, Benson. Everyone did a super job!

Mary Emma Allen on March 31st, 2008 at 23:06

Nice roundup of posts about whether there is or isn’t a recession, Kelly. I’m pleased to participate for Home Biz Notes.

Mike Abundo on April 1st, 2008 at 09:37

Matt Marshall said it best: “Meebo raising round, valued up to $250 million. Bear Stearns sold for $236 million.” The nontech crash is sweet revenge.

Recession? What Recession? on April 1st, 2008 at 19:51

[…] When you have a few minutes, read “Recession? What Recession?“. […]

GB Mentor on April 5th, 2008 at 11:13

Good roll up on the economy.

One missing part is the piece the of the national debt. Every American needs to take note and take immediate action….no I am chicken little and the sky is not falling, however here are some cold facts.
1. The US has more debt than ever before
2. In the 70s when the economy started to slow, the baby boomers (who were young then) listened to the government and continued to spend. This will not happen this time.
3. The Soviet Union and China were not world players in the commodity markets. They are heavy weights. Other countries as well are competing for the same resources.
4. Oil prices will continue to rise and so will our food costs. The US government took Food and Oil out of the inflation index….are you kidding me….Be prepared.
5. The world is Global now and corporations are looking to outsource even more jobs to overseas markets.
6. The US government is flooding the markets with more money…making the dollar less… Each time the interest rates lower…the US loses.
7. The Euro is looking like a better investment than the dollar…if major economies go that way the dollar with fall and inflation will surge.

OK enough bad news. Take action and be ready for the tough times a head. If you are really interested in changing your financial situations join us.

All the best.

GB Mentor.

b5 business channel tackles the recession on April 5th, 2008 at 12:09

[…] (www.myorganizedbiz.com) - Kelly Phillips Erb has compiled a fantastic collection of viewpoints from the b5 business gurus entitled, “Recession? What reces…. […]

FINANCE TRADES BLOG » Blog Archive » b5 business channel tackles the recession [My Organized Biz] on April 6th, 2008 at 09:42

[…] (www.myorganizedbiz.com) - Kelly Phillips Erb has compiled a fantastic collection of viewpoints from the b5 business gurus entitled, “Recession? What reces…. […]

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