It's official. The U.S. economy has been in a recession for the past year.
How long will this recession last? There is no answer. The frustration continues and recession hits hard. Usually a recession lasts six months. This has been a year. The great recession lasted 3.5 years. Meanwhile, Asian stock markets tumbled today following massive overnight losses on Wall Street (lost more than 600 points today) and dismal economic numbers out of the U.S., a crucial export market. The start of the downturn was announced Monday by the National Bureau of Economic Research.
The National Bureau of Economic Research (NBER) — a private, nonprofit research organization — said its group of academic economists who determine business cycles met and decided that the U.S. recession began last December. In a news release, the group said its cycle dating committee held a telephone conference call on Friday and made the determination on when the recession began. What's important is what is being done about it. The most important things we can do for the economy right now are to return the financial and credit markets to normal, and to continue to make progress in housing, and that's where we'll continue to focus. Many economists believe the current downturn will be the most severe since the 1981-82 recession. The country is being battered by the most severe financial crisis since the 1930s as banks struggle to deal with billions of dollars in loan losses. The Bush administration won approval from Congress on Oct. 3 for a $700 billion rescue package for the financial system.