Oct
08

Recession Reasons

Recessions tend to occur from sharp falls in auto sales, home construction, commercial construction, and corporate investment in plant and equipment. It’s because purchases of these items can generally be timed, unlike services, like healthcare. Importantly, unlike housing, which skyrocketed early in the last decade to crash in 2007, precipitating a recession, these four sectors have been weak for some time now. This suggests a mild recession when it comes.

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