The National Bureau of Economic Research, a private organization, proclaimed today that we entered into a recession in December 2007.
Yup, you read that right: December 2007. It took this whiz-bang groups of economists a full year to figure out what you and I already knew; that the economy sucketh.
Here are some informational points to consider:
- Manufacturing is at a 26-year low.
- Employers have cut 1.2 million jobs in the first 10 months of this year.
- It’s expected that number will increase to 1.5 million jobs lost when the November figures are tallied.
- It took the “geniuses” a full year to “figure out” that we entered a Recession.
On this CNN Money page (click for link), there is a table to the left of the article that shows the previous 10 recessions since World War II. Of those, the two longest recessions lasted 16 months. We’re now into the 12th month of this recession and there is no sign that it will end soon. This clearly means that this will be the worst recession in 60 years – unless it’s reclassified as a Depression.
But, we’ve already seen the dirty little trick they use – we entered into a recession a year ago, but they’re just telling us now. Why? Simple. You’re no longer surprised to hear that news. Governments prefer to keep telling you everything is fine until it’s clear that it’s not fine and then they’ll tell you what you already know.
If they would have told us in January that we entered into a recession, many Americans would have changed their spending habits immediately; and that would be bad for the economy. Not your economy, but for the bankers and corporations economy, as they need us to keep spending as long as possible. Anything to separate you from your money.
So, what can we learn from this? First, the Government is not hear to help you; they think you’re a child and can’t handle the truth. Second, the Government is too slow to be effective. For the most part, they are reactive instead of proactive. Third, because of the previous two lessons, the Government can only make it worse.
If you haven’t started to prepare, what are you waiting for? Start preparing now! If you have started, use this information to prepare harder. Next year, 2009, is going to be an incredibly bad year economically and you need to be ready for it.