Folks, I’m going to go ahead and call it, even though no one else seems to be willing to do so. We’re officially in a recession.
The National Bureau of Economic Research defines a recession as:
A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.
Let’s take a look at some of the leading indicators, shall we?
- Employers Slash Jobs by Most in 5 Years
- Oil Prices Hit All-Time High
- Wholesale Prices Jump in January – Prices rose at the fastest pace in 16 years.
- Homeowner Equity Is Lowest Since 1945
- The Dow Jones is down 10% YTD, and 15% from the high in 2007.
- The US Dollar is as low as it’s ever been.
- Slight Increase in Personal Income Overshadowed by Rising Inflation.
- Consumer Confidence at Lowest Since 2002
- US Household Net Worth Down 0.9%
The first step to recovery is recognizing that you’ve got a problem.
What are we supposed to do about it? I don’t know.