#Recession
Quotes about recession
Recession—a term that often evokes a mix of anxiety and curiosity—represents a period of economic decline characterized by reduced industrial activity, increased unemployment, and a general slowdown in economic growth. This economic phase, while challenging, is a natural part of the economic cycle and has profound impacts on both individuals and businesses. People are drawn to quotes about recession because they offer wisdom, perspective, and sometimes even comfort during uncertain times. These quotes can encapsulate the resilience and adaptability required to navigate financial hardships, providing insights that resonate on both personal and professional levels. They remind us that while recessions are periods of contraction, they also present opportunities for innovation, growth, and transformation. In essence, quotes about recession serve as a beacon of hope and a source of motivation, encouraging us to persevere and find strength in adversity. Whether you're seeking solace, inspiration, or a deeper understanding of economic dynamics, exploring thoughts on recession can offer valuable lessons and a renewed sense of optimism for the future.
The recession is not over. We will probably have a 'double dip,' another downturn, by spring.
Both had trouble generating conviction of their own but no trouble at all reacting to what they viewed as the false conviction of others.
By early 2005 all the big Wall Street investment banks were deep into the subprime game. Bear Stearns, Merrill Lynch, Goldman Sachs, and Morgan Stanley all had what they termed “shelves” for their subprime wares, with strange names like HEAT and SAIL and GSAMP, that made it a bit more difficult for the general audience to see that these subprime bonds were being underwritten by Wall Street’s biggest names.
Long Beach Savings was the first existing bank to adopt what was called the “originate and sell” model. This proved such a hit—Wall Street would buy your loans, even if you would not!—that a new company, called B&C mortgage, was founded to do nothing but originate and sell.
They had stumbled either upon a serious flaw in modern financial markets or into a great gambling run. Characteristically, they were not sure which it was. As Charlie pointed out, “It’s really hard to know when you’re lucky and when you’re smart.
Because the lenders sold many—though not all—of the loans they made to other investors, in the form of mortgage bonds, the industry was also fraught with moral hazard. “It was a fast-buck business,” says Jacobs. “Any business where you can sell a product and make money without having to worry how the product performs is going to attract sleazy people.
Markets are not efficient enough; that’s why we have market peaks and bottoms now and then.
The simple measure of sanity in housing prices, Zelman argued, was the ratio of median home price to income. Historically, in the United States, it ran around 3:1; by late 2004, it had risen nationally, to 4:1. “All these people were saying it was nearly as high in some other countries,” says Zelman. “But the problem wasn’t just that it was four to one. In Los Angeles it was ten to one and in Miami, eight-point-five to one.