How Long Will the Recession Last?
It’s a question every pundit likes to discuss. I happen to like CNN Money’s Anthony Karydakis’s take on the matter. He takes a look at previous recessions and compares and contrasts them with our current one. Here’s a snippet:
So now the question is: when will it end, and how deep will it get?
There are good reasons to be worried about both of these measurements, as the headwinds facing the economy are powerful indeed. But it’s best to resist the temptation to give in to predictions of unconditional gloom and take a cool-headed look at how this recession compares so far to the many other downturns we’ve survived.
On the likely depth of the recession, it has been often said that this may be the most severe recession “in decades.” This statement is almost certainly true but not particularly informative, as the two most recent recessions, in 1990-91 and 2001, turned out to be famously mild and short-lived by historical standards. So the real question remains: “the deepest recession” in exactly how many decades?