The definition of a recession "your neighbor is laid off" definition of a depression "You are laid off" Seriously the "gov." definition (this is on test by the way) Recession 2 consecutive quarters of negative growth. Depression 6 consecutive quarters of negative growth.
The financial sector keep cracking. So who cares? If they have to contract to shore up balance sheets, then there is no lending and no lending means no expansion.
Now the gov will twist and manipulate the numbers so it will not look like a recession until you get smacked up the side of the head and say wow we are in a recession. The numbers will be too late after the adjusted for....
What we do know is that supply of grains and metals and oil and just about everything produced in is less than the demand. We also know that the feds will pump more and more money into the economy to try and avoid the inevitable.
So what are traders to do? Play the inflation card. Long natural resources and short bonds.
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