Depression Or Recession?
- Written by Mana Tulberg
- Posted October 18, 2008 at 6:04 pm
Stuart Gabriel, professor of finance and director of Richard S. Ziman Center for Real Estate at UCLA, was one of many speakers at the 2008 California Association of Realtors (CAR) Expo.
I attended Professor Gabriel’s session “The Road to Economic Recovery” and found some of Professor Gabriel’s observations very interesting.
Stuart Gabriel believes that if the Federal government had not involved itself in the financial crisis the country is experiencing, we would have faced another major Depression. However, as the Federal government implements the new economic rescue plan the country will be in Recession.
How much longer will the recession last? Professor Gabriel indicated that we might be in recession for another 3-4 quarters.
What do you think?
Do you believe that the Federal governments new economic recovery plan is going to keep this country out of a depression or are we looking at even more troubled times ahead?
Do you think the economic crises we are facing right now will get better in 3-4 quarters?
I’ve heard the 3-4 quarter turnaround prediction and hope it’s true.
I think the Home Mortgage situation needs to be addressed immediately though for that to happen.
@jesseluna on Twitter
@Jesseluna,
I do agree with you. It was the faulty mortgages (among many other mismanagement)that brought the country’s economy to its current status.
Althougha depression is possible, it’s more in the “unlikely” corner right now. A recession, by definition, is a -10% calculation for the Gross Domestic Product (GDP) Reoprt. I believe we’ll go negative, but 10% would be a far-fetched prediction.
Palmer, I am not an economist, however your explanation sounds very logical.
Thanks Mana. I try to keep my facts straight and opinions realistic.