Road Sign Ahead: Signs of Economic Recession

An economic recession is defined by a negative growth in gross domestic product for two consecutive quarters.� In other words, the gross domestic products are decreasing in production.� Recession is a national or world even regional event.

Economic recession lasts from six months until a year or two, which could be the worst time frame for a recession.� Based on the experience of the United States with its last three recessions, the labor- market recession would last between three to four years.� (Schmitt and� Baker, 2008) with the actual recession only happening for more than a year and a half.� The effects of a recession could be felt longer than the actual span of the recession itself.

There are several telltale signs that a nation or region is experiencing economic recession.� MarketWatch lists seven things to watch out for to be full-warned for an economic recession event.

Accoding to MarketWatch, it is important to look at the increase of interest rates in the credit market.� Lenders are tightening lending policies because of market troubles. Companies not making any profits is another sign of a recession.
Skyrocketing oil prices are also indicators of a recession.� Oil prices have big effect on the economy, especially if the economy is experiencing little growth.� Oil is not the only one increasing their prices.� Prices of essential commodities are
also increasing.� But the stocks and property prices are going down but nobody is purchasing them.

Housing problems and foreclosures are also clear indicators.� Foreclosures happen when people and consumers are unable to pay mortgage and finance homes.� Borrowers are failing to pay back loans for homes, vehicles, businesses and credit cards.� Even banks and credit unions are missing out payments for their financial obligations due to borrowers unable to repay their loans.

There is also a relative increase of people truing to pay their bills with credit cards.� Credit card purchase is increasing. This means that people are having problems paying cash.� Using credit card to� pay for loans despite excessive interest rate shows desperation.

Consumer spending or making sure that the money from the consumers return to the economy is also something to check.� Government intervention in economic crisis resulting to fruitless efforts can also be a warning.

There is also a relative increase of unemployed people.� During an event of a recession, companies tend to release workers due to low production demand.� Low production demand means lesser income for the company owners.� Companies and firms are then obliged to release employees to reach the target income.� For the last seven years, unemployment has been rising steadfast in the United States.� Overall employment, which is still high is historical terms, is declining since the start of 2008.

So how can ordinary people foresee recession?

AOL listed some interesting real life indicators that we are experiencing economic recession.� People are stealing not only the whole car but different car parts from vehicles in parking lots.� An example is a catalytic converter, which helps the car’s emissions.� Meanwhile, inside retail stores, lesser people are shopping for merchandises.� They are now opting for wholesale store membership.

Personal and family affairs, like weddings, are also being regulated in terms of guests and food. While corporations are cutting back on country club memberships and out of town travels.

Car companies are having difficulties getting buyers even with lots of incentives.� Suddenly, the most popular restaurants in town does not have any waiting list at all.� Small and local business are closing because they can’t keep up with the expenditure.

There can be countless ways of figuring out if a nation is suffering from a setback like an economic recession.� But if these signs can be immediately detected and can give us a hint on our economic and financial future, then we should be better learn how to read the signs. Or we might not have the future.

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Collateral Damage: Suicide and Economic Recession

Economic recession and depressions are well known to bring about depression and suicidal risks. There are stories of businessmen jumping out of windows following the stock-market crash of 1929.

Unknown to many, people who commits suicide in the wake of economic recessions and financial crises are not individuals with pre-existing mental illnesses.� They are commonly middle-aged men in the verge of debt and bankruptcy.

About sixty percent of suicides in 2006 (worldwide) happen in the Asia Pacific region.� � In Japan, Sri Lanka, and some parts of China report that more than 20 out of 100,000 citizens kill themselves each year.� More than twice as many in Australia and New Zealand.

It is also relatively higher in places where it is culturally accepted like in Japan and India.� When several countries in Asia- Pacific were hit by an economic crisis in mid- 1990s, there was a relative increase in the number of suicides among middle-aged men.� This group were said to be the most affected group by the economic recession.

Aside from economic factors being a reason for suicide, it also has to do something with the Asian values in terms of shame and humiliation not being able to provide for the family.

In Asian culture, loss of face or shame is take more seriously than it is in Western culture.� In Japan, there are samurais that took their own lives to avoid disgrace after a defeat. They call this tradition hara-kiri. There are some corporate executives who have done the hara-kiri tradition in the eve of an economic decline.� A stretch of forest� in Mount Fuji is called “the suicide forest” due to dozens of bodies retrieved from it every year.

Economic recession has great effects on the youth and children, poverty and financial difficulties have pushed them towards suicide.� In Israel in 2003, a 15 year old killed himself when their electricity has been cut.� In the suicide note, the teen-ager mentioned that he does not want to be a burden for his mother who raised him as a single parent.

In the Philippines back in 2007, an 11 year old girl ended her life because of poverty.� In her suicide note, she wished that her parents will have a stable job and that her siblings would be able to go to school regularly.� This incident drew attention towards the poverty programs the government has in the country.

Governments and concerned institutions globally are taking steps to address this issue.

An example would be the steps being undertaken by the Japanese government.� Some new measures are changing work patterns to allow more flexibility and funding early detection and treatment programs.

The Japanese government are also providing better mental health counselling at the workplace, networks of community psychiatrists and public campaigns to raise the awareness of the problem. Telephone hot line services are also readily available. There is a new software being developed to filter out websites that promote group suicides.
Australia, in Asia-Pacific, is the first country to initiate the prevention of web based suicide groups.

Aside from government efforts, there are personal ways you can do to help a suicidal person:

1. A suicidal person is carrying a burden that they can’t handle anymore. Listening is important.

2. Be sympathetic, non- judgemental, patient, calm and understanding.

3. Avoid trying to offer quick solutions by belittling the person’s feelings.

4. Dealing with a suicide threat is stressful.� Seek assistance o decompress afterwards.

5. If personal efforts fails, don’t blame yourself. It is the person’s choice. It is wise to ask for grief counselling and suicide survivor support groups.

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� Teaching Your Kids to Save During Recession

Economic recession is taking its toll. A lot of Americans right now are feeling the heat of the tight times as more and more people are losing their jobs and losing their homes. High prices of gas and basic commodities are also making it harder for American families to survive without additional income.

During these times, people are thinking of ways on how to save up. This is especially true with families that support one or two or more children. Between feeding them and sending them all to school, these families will surely have to scrimp on some areas in order to survive.

But parents should not be the only ones who should be scrimping. When it comes to saving money during economic recession, their children can also play important roles. In fact, they can use these tight times to teach them children about saving for the future and saving money. This will help them deal with tighter times in the future should they experience it when they have families of their own. Below are some of the ways that you can teach your children about saving up.

1. Explain to them
You may not realize it but kids do know what is going on and when you explain the situation to them clearly and with examples that they can relate to, they will be able to understand you. Some will even help out on their own volition without you telling them what they have to do.

Telling them why they should do something is more effective than telling them outright what they should do. The latter will sometimes antagonize them or will cause them to rebel as they feel that you are ordering them about without any reason. Kids, as you well know, do not want to be bossed about.

2. Give them piggy banks.
Having coin banks may seem outdated in this digital age but it is nevertheless still effective in teaching kids how to save up. Tell them that saving up will allow them to have some money should they need to buy something that they want. A portion of their lunch money, for instance a quarter or two, is a good way to start.

Of course, do not discourage them to buy food when they need to eat but tell them though that if they are not hungry, they can save the money so that they can use more for the next day.

3. Get what they need
Controlling what they put on their plates during dinner will help control the urge to get more than they can use. Ask them to clean their plates every time. That way, they will only get the food that they will be able to eat. This will teach them about saving and buying only the things that they need. This is a great training in the future so that they will not grow up with maxed out credit cards, buying things that they do not really need in the first place.

4. Being a role model
Face it. Whatever your child does is only a reflection of what you yourself are doing at home. So if you want the kids to start saving up, make sure that you are also doing your part in saving in this times of economic recession.
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What Economic Recession is all About

Economic recession is gripping the United States right now and people just don’t know what to do about it. In truth, economic recession isn’t something new anymore. In fact, it has been happening all through out the decades. People don’t just know about it because it has not been as widely publicized as now. This is perhaps because of the ongoing political race between the Republican and the Democrat. And mayhap also because, the country has never experienced such downturn in economy than now, with losses in the real estate, banking and insurance sectors.

Economic recession is actually a term used to refer to the slowing down or downturn of the economy after a period of upturn. You can better picture it with a cycle that often turns. Economy is sometimes rosy and bullish but after a period of progress, it will slow down and become bearish as what they use in the stock market.

The cycle of economy

Often, economic recession is not a problem as the government’s financial sectors have solutions for it. One of the most common is tax cuts where the government gives up a portion of their income and gives it back to the people so that they will have money to buy goods. When consumerism becomes good again, companies who lost a lot of money during the period of downturn and low demand will regain their losses. This will lead to the hiring of new people and increasing their production. More supply in the market will lead to lower prices which will hopefully encourage higher demand for products. Thus, ending the recession.

Easier said than done

It is however easier said than done. Sometimes even with tax cuts, the government cannot balance the economy. This is especially true if the country do not have much budget to augment the situation or if there have been occurrences that are outside their control.

For instance, the problems in the real estate industry and near bankruptcy of a lending firm associated with properties are not exactly brought on alone by economic recession. Problems in the company way way back have contributed to its losses, only aggravated by the current economic situation. The same goes with the problems two major banks in the United States is experiencing right now and also the losses that are beginning to show from the portfolio of a multinational insurance and financial firm.

All these are not all the fault of economic recession. However, what is happening to their company is made much worse by the economic downturn as people will not spend as much. Because of the hard times, some will not also be able to pay their loans or pay off their mortgages like before. If a company has a solid money background, it will not matter as its assets can absorb the losses. Unfortunately, if a company is already suffering from problems even before economic recession can make it bankrupt.

Although economic recession is basically something that happens to a country, individuals are affected not only in the country where it is happening but also worldwide. This is especially true if the company has interest worldwide or the currency is being used all over the world. There is however not much that people can do except take a calming breath and just take one day at a time, hoping it will all come to an end soon.

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What to Watch Out for During Economic Recession

Economic recession may be normal occurrence but it does not mean that it cannot hurt you. In Economics, recession refers to the period in a country’s economy when there is slowing down of progress and rising inflation rates. Like a cycle, a country’s economy is sometimes up and sometimes down. We just don’t feel it before because the economy oftentimes bounces back fast. It is only now that recovery seems so slow and damage has become far-reaching with the crashes in the real estate industry as well as to the banking and insurance sectors.

So what makes an economic recession? What do you need to know about it and what is it all about?

1. Rising costs of living
Because of the slowing down of the economy, production will not be as active. This stems from the lesser demand that comes from the consumers. When this happens, prices will rise as there will be lesser products in the market than before. Basic commodities will usually rise especially those that people consider as basic necessities such as food, shelter and home. Oftentimes, what you will normally be able to buy for a specific amount money will not be as many. This is when we say that the value of the money lessened.

2. Job cuts
During recession, many companies will suffer from cash flow problems. Because of the lesser demand, more and more companies will shut down their production lines to cut costs. This leads to cutting off jobs just to make both ends meet. Right now, many companies in the United States have already done job cuts. Although it does not sound good, these companies do not really have a choice as often, they will need to let go of some employees to keep the company running and still employ the others.

3. Expense cuts
Because people do not have much money in their pockets, most of them will be scrimping on their expenses. They will only buy things that they need. Some do this because they want to save their money while others do this because they don’t really have a choice, having a much lower income than before. This however contributes to the economic recession as low demand will also lead to low supply which can affect company earnings. When this happens, jobs may become at risk and companies may suffer from financial losses.

4. political turmoil
Although it is not often the case, most countries suffering from economic recession will have political turmoil. This is especially true if the country has not responded to the economic recession well and the situation has ballooned 10 times over. When this happens, people will naturally blame the people in the government and their policies. This is the time when people troop to the streets to protest or they announce their displeasure through surveys on job approval ratings of government officials.

5. Tax cuts
Because of lesser income and less value for your money, the government tries to augment people’s financial problems and also to help companies by giving people more money that they can spend on basic goods. They do this by giving back to their people a portion of their income— tax cuts.

In this instance, the government is cutting off the income that they get from people in order to stabilize the economy during economic recession.

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What is an Economic Recession

What is an economic recession? This occurs when there is a significant decline in the economy which usually lasts for months. This is visible in terms of consumer spending, employment, industrial production, real income and wholesale trade. A technical indicator of this is 2 consecutive quarters of negative growth which is measured by the country’s GDP or gross domestic product.

Experts say that an economic recession is normal because it is part of the business cycle and things usually improve within 16 to 18 months.

During the business cycle, there is a period of recovery, expansion, slowdown and then recession. During recovery, the GDP of a country starts to move up. When the GDP grows robustly, this is the time that it expands. When consumers are not buying that much, this is when you have a slowdown. Because there is weaker demand, you have a recession.

The last economic recession occurred in 2000 and 2001 which featured three quarters of negative growth followed by three positive quarters then five more quarters of sub par growth. Experts say that the same trend will happen right now.

One solution that the government usually does is lower interest rates to help stimulate the economy. Just last year, the Federal government slashed interest rates three times towards the end of the third and fourth quarter year so that overnight loans between banks could be borrowed at 4.25% which happens to be its lowest in the past 2 years.

What makes the economic recession different from what occurred after the Second World War is that this one is caused by falling home values and a crisis of confidence among fixed income investors.

Despite the fact that the country has endured this time and again for over 50 years, there is still no way to predict when it will happen.

Some use the stock market as an indicator. Others use the inverted yield curve which uses yields on a 10 year and three month Treasury securities and the Fed’s overnight fund’s rate. The unemployment rate is also another which happens to be one of the things that make up the index of leading indicators.

There are people in the Bush administration who do want to call it an economic recession because this will make people panic but there are others who are brave enough to admit that it is here. Since it is going to be some time before the economy recovers again, everyone is advised to stay calm, save up and look for long term investments worth going into.

Apart from the war in Iraq, the economy is going to be one of the critical issues that both candidates have to address as they are campaigning for the highest post in the land. Whoever wins, they have to find a way to reduce the unemployment rate, help people save their homes and a lot of other things that affect the average American household.

An economic recession lasts months at a time. If it should continue for a much longer period, then this is called a depression which is something that the world and not only the US experienced at the end of the First World War. This lasted for up to 4 years that many hope will never happen again.

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Because United Nations Day is near, I’ll let you know what is it.
The Second World War left humanity in a grip of poverty, famines, epidemics, social insecurity and in such a gloomy state, the whole world desperately needed a supportive hand to withstand the post-war aftermaths. As the dust settled down on World War-II, the entire human community felt the need for creating an international agency that can avoid such disasters in future. This led to the formation of United Nations Organization (UNO), or simply UN, which came into existence on 24 October 1945 with 51 members signing the UN charter. The agency was set up with the aim of providing an unbiased platform for resolving international issues and encompassing the development of humankind on a whole.

Although an organization of similar kind namely the League of Nations was also formed after the end of World War-I, it failed to counter the rising power of Nazism and hence it finally disappeared. Taking lessons from this fiasco, UN Charter laid more emphasis on holistic human development and focused on balancing of power across the globe. Since 1945, UN has a proud history of serving humanity through its different branches. To familiarize the world with its aims and achievements, United Nations decided to celebrate 24 October as UN Day through a proclamation of UN General Assembly in 1948. It is a part of the UN Week celebrated from 20 to 26 October.

Today ‘UN Day’ is observed throughout the world through several meetings and seminars which are organized to mark this occasion and discuss the organization’s achievements and goals. In 1971, the General Assembly also proposed for declaring UN Day as an official holiday in member countries. The day is also enthusiastically celebrated by numerous international schools that often include cultural activities and food fairs. In United States, the President proclaims the public observance of United Nations Day since its inception, and thus calls for celebrating the occasion with proper ceremonies and related activities across its states. On this important day, the UN Secretary-General delivers a speech to world describing the goals of United Nations and the efforts the organization have poured in attaining them.

UN Day continues to hold a great deal of relevance owing to myriad challenges that humanity faces today.� Some of these include global warming, nuclear proliferation, poverty, illiteracy, and peace and security. Out of these, the issue of global warming is proving to be the most crucial one, as it endangers the very existence of life.

Today United Nations is running several environment protection programs and it primary initiative is undertaken through the UN Framework Convention on Climate Change. The agency has called on the developed nations to understand their responsibility in tackling the critical issue of climate change. In addition United Nations is working hard to materialize Millennium Development Goals (MDGs) that include an all round development of underprivileged sections of the world. Furthermore, the agency is also focusing on other crucial issues like nuclear disarmament, global warming, conflict prevention and peace building process across such regions. For instance, UN recently sent its peacekeeping troops in Kosovo to restore peace in the region. The upcoming UN Day gives us an opportunity to appreciate the role of United Nations and understand why its existence is so crucial to the collective prosperity of the human race.

Anyway, my daughter is now excited about this day because she already have a costume for the parade.

So Many Products, So Little Time

One of the problems that people run into when they
have decided that they want to sell a product as their
home business is what type of product do they want to
sell? There are a few questions that they can ask
themselves in order to help them choose a product.

1. Is it something people will buy?

One of the best ways to know is to ask your friends
and family. These are going to be your first
customers, and it should be something that they are
interested in.

2. Is it popular because it’s a fad?

A good example of something that is a fad is Harry
Potter. It’s very popular now because the last book
came out and the movies are still big. But are people
going to still buy Harry Potter merchandise five years
from now when the movies are done?

3. Is it something you believe in?

Let’s face it. It’s hard to sell something if it’s
something that you don’t like or wouldn’t use
yourself. You want to make your sales pitch sound
believable and let people know that you truly believe
in your product.

4. Do a lot of people sell it in your area?

The competition for sales can be bad enough without
selling something that everyone else is selling.

Once you have asked yourself these questions, you will
be able to narrow it down more and find something that
you can sell and sell successfully.

Setting Up Your Home Office

Before you can start your own home business, the one
thing that you should do is to designate a place for
you to work. The area that you work in should be free
of distractions and have a computer,a desk, a phone, a
connection to the Internet, and, if possible, a
bathroom. This way you will have everything you need
until you take your lunch break.

Something to remember is that you are ‘at work’ in
this area. An ideal solution is to have every
distraction taken care of. This means that you have
someone looking after your child, if possible. If your
child is younger than school age, hire someone to look
after them during the day.

This may seem strange since you are working at home,
but would you take a baby into your office with you?
Probably not – your boss wouldn’t allow it. Having
someone look after them while you are working ensures
that you will get everything done during business
hours.

If your children are school age and old enough to
understand, let them know that you are working, and
that you should only be disturbed if it’s an
emergency. If they are still young, have someone watch
them after school.

This may seem like an unnecessary expense, but if you
are talking to someone on the phone they won’t take
you seriously if they hear a crying baby in the
background, or children fighting. You want to make
yourself seem as professional as you can so that
people know they can trust you.

Networking is Important

One of the biggest assets you will find when you are
in a home based business is networking with other
business owners. Not only are they a great source of
encouragement, but they can also lead to more
business.

When people are selling products, such as jewelry or
candles, a lot of times what they will do is to have
an online party. Everyone goes into a chat room, and
it’s just like a regular party, except it’s online.

Something that people will do is that they will trade
parties in the network. Let’s say that you sell
jewelry, and someone else in the network sells
candles. The two of you talk, and you agree to do a
candle party for her if she does a jewelry party for
you. This way the both of you benefit from the
experience, and hopefully the two of you make some
sales.

Just like with a regular party that is held in
someone’s house, it’s important to give your hostess a
thank you gift for holding the party for you This way,
even if she doesn’t buy anything, she still gets to
see what it is that you have to offer and will keep
you in mind for the next time that she wants to buy a
product like the one that you are selling.

Networking is an essential part of having a home
business, and can be very profitable if you take time
to get to know those in your network.