What Is A Recession? How to Get Ready for Hard Times
By: Michael Tedder
| Source: The Street
But here’s the thing, it’s entirely possible that we’re already in a recession, and just don’t know it yet, according to Howard Dvorkin, CPA and Chairman of Debt.com.
Economists define a recession as two consecutive quarters of negative growth – which means production drops and unemployment rises. There’s a problem baked into that definition: You can’t know for sure if you’re in a recession for almost six months,” says Dvorkin. “We can read the tea leaves and make educated guesses, but we can’t confirm those until two quarters are nearly over. By then, of course, it’s too late to prepare.”