The Fear of Economic Recession

It seems that economic recession is long to continue until the end of this year. The daily news update on global economy shows no signs of recovery yet, but economic experts vary on their opinion widely about the gravity of the problem and how it can be resolved.

The statistic shows that almost 525,000 jobs lost in December,2008. Unemployment reached to 7.2% nationally for the first time since 1993, the highest in 16 years but have not reached the highs of 1981-82 recession which has reached the 10.8 percent rate.

Some economic experts and businessman believe and are optimistic that economic recovery could start at the third quarter of 2009 with stimulus being devised by Barack Obama government.

The way other deals with fear of economic recession is more of psychological rather than analytical. If small businesses will be scared to embark on business and consumer stop on buying, the recession then will continue to persist. When there is a low product demand, the manufacturing companies will cut their production and so they will likely slash the number of staff which result to unemployment.

The point here is to be logical in handling finances, that is be a "wise spender" and "smart buyer". Only spend on necessities and consumables and buy things which yield returns.

Economic recession is not a new issue anymore. History proved that economic recession have occurred several times in the past. There was this "great depression" in 1929 that started in United States affecting other countries several times that ended in 1940. Needless to say, economy can rebound any time in the near future.