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'Global Economy is Probably in Recession' (reuters.com) 217

An anonymous reader shares a report: The global economy is probably in recession, with most cyclical indicators showing business activity is flat or falling. Recessions become obvious only once they are well established given the lagging nature of most economic data. And end-of-cycle recessions are usually impossible to distinguish from mid-cycle slowdowns until well after the slowdown has started. The arrival of a recession is always controversial at the time and usually missed by most forecasters, as the leading business-cycle economist Victor Zarnowitz noted. Policymakers are reluctant to announce a recession for fear of harming consumer and business confidence and worsening the downturn ("Business cycles: theory, history, indicators and forecasting," Zarnowitz, 1992). But almost all the main economic and industrial indicators that provide a reliable guide to the business cycle confirm the economy has already slowed severely.
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'Global Economy is Probably in Recession'

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  • by Dallas May ( 4891515 ) on Friday August 09, 2019 @01:22PM (#59070426)

    I work in environmental due diligence consulting. I've always felt that our field is a very good leading indicator of the general economy. Namely because people will always tend to do their environmental due diligence before anything else in making investment decisions.

    That said, I've seen the field basically screech to a halt. (There is a always government work that keeps us busy, but the margins are much lower.)

    • Re: (Score:2, Insightful)

      by Anonymous Coward

      How clueless. We have a record high stock market and record low unemployment. Your field is being ignored because we finally have an administration that correctly has decided you're mostly-irrelevant crybabies.

      • by jellomizer ( 103300 ) on Friday August 09, 2019 @02:55PM (#59071196)

        The economy is more complex then just the stock market and unemployment.
        1. Stock Market: The prices for stock are based on supply and demand for the ownership of such stock. With Last Years tax cuts, a lot of companies had bought back a lot of their socks, reducing its supply thus raising stock prices. However what is really troubling is Stock Variability we see 500, 600, 1000 point drops in the DJIA then it rises 300 points the next day. It is barely trending upward now. Also stocks tend to go up. So a record high stock isn't really a big deal and we have them all the time.

        2. Unemployment is calculated by the number of people who want to work but do not have a job. This isn't peak employment, as boomers are retiring, a big portion of the workforce is leaving the market. leaving a smaller market of employees to fill the gap. Also the buying power of these employees is less, so they cannot be customers.

        The current administration is a broken clock, when they get it right, it is only by chance. I Live in a most Republican Area... However I watched my local community in essence die, because water pollution from the local factory, had killed all growth in the town within weeks of its findings. Residents cannot move out because their prices of their home had dropped too much that finding a new home would be too expensive. New businesses do not want to set up shop there because there is no foot traffic because everyone has became too poor and depressed to go out and buy things. Things are really bad right now, it is just the fact that our foundation is wearing out, however it is currently being propped up by a few companies.

        • And as a result, the community is probably voting even more Republican?

          I always think Republicans are against education and a honest media because it would expose the cause and effect of their policies.

      • by q_e_t ( 5104099 )

        How clueless. We have a record high stock market and record low unemployment. Your field is being ignored because we finally have an administration that correctly has decided you're mostly-irrelevant crybabies.

        USA != Whole world. Title of article 'Global Economy...'

    • I work in environmental due diligence consulting. I've always felt that our field is a very good leading indicator of the general economy. Namely because people will always tend to do their environmental due diligence before anything else in making investment decisions.

      That was before Trump's EPA

      • A few people have said that. But no. He hasn't repealed a single environmental law.

        Every property owner is still responsible for environmental damage caused on their property. Nothing has changed.

        • A few people have said that. But no. He hasn't repealed a single environmental law.

          So what? He's relaxed standards and interfered with operations.

          • He has begun the process for relaxing some rules. But as best as I'm aware -and I'm not an expert, I'm just a licensed professional environmental engineer that consults clients in this stuff literally every day, but don't listen to me- nothing has actually changed yet.

            It takes years to change rules.

    • That's an interesting field. Have California's wild fires impacted your job in any way? As a local, I notice lots of logging trucks rolling out of affected areas. They were allowed to harvest snags, and they're doing it quickly because I'm given to understand that the trees degrade quickly due to storms, rot, animals, etc.

      Another side effect is depressed firewood prices. It's great for those of us that heat with wood. It's got to be lousy for wood guys. There are piles of wood in some places, even oak

  • by raymorris ( 2726007 ) on Friday August 09, 2019 @01:26PM (#59070450) Journal

    This columnist is clearly not an economist, since the evidence they give of recession is that various numbers are "nearly flat" - not growing very fast. The definition of recession is negative growth. Growing, slowly or quickly, is the opposite of recession.

    I'm also not a professional economist. On the other hand, Alan Greenspan is among the top 3 experts in the world on the economy. Greenspan said just this morning that we are NOT in recession and indicators do NOT indicate we're about to enter a recession. "There are positive signs in the short- run which suggest that we are not about to tip into a recession", said Greenspan earlier today.

    Growth certainly seems to be slowing, according to Greenspan, and there are potential issues *ling term". We are not in a recession and there is no sign that we will be any time soon, according to top economists.

    • by DigitalisAkujin ( 846133 ) on Friday August 09, 2019 @01:33PM (#59070530) Homepage

      Greenspan disgraced himself in 2008 and somehow armchair internet warriors like you still call him some kind of expert. Give me a break.

      We've been in the longest period of expansion since the founding of this country. The recession is coming whether you like it or not. Stop ignoring history.

      • Greenspan disgraced himself in 2008 and somehow armchair internet warriors like you still call him some kind of expert. Give me a break.

        Maybe, but Greenspan did predict in 2007 that there could be a recession in 2008: "When you get this far away from a recession invariably forces build up for the next recession, and indeed we are beginning to see that sign [...] While, yes, it is possible we can get a recession in the latter months of 2007, most forecasters are not making that judgment and indeed are projecting forward into 2008 ... with some slowdown."

        Unfortunately, he completely misidentified what the cause of the recession would be; he d

    • by jeff4747 ( 256583 ) on Friday August 09, 2019 @01:42PM (#59070602)

      So.....we're going with Greenspan, who completely flubbed the 2008 recession, as the authority then?

      Kinda odd to miss the largest recession since the 1930s, but hey he is saying what you want to hear. Again.

      • Well I'm an armchair economist so perhaps I can be of some assistance.

        Smaller businesses are more-vulnerable to economic pressures. As small businesses fail to grow and thrive, the employment among them will undoubtedly slow, relative to larger businesses which attempt to grab at market share with their large resources and greater capacity for managing risk.

        One might, then, observe businesses in the United States with 1 to 19 employees coming to a screeching halt in growth about a year and some change a [adpemploymentreport.com]

        • by KlomDark ( 6370 )

          But there's also another possibility for your statement about "negative growth in small businesses of 1-19 employees":

          We hit full employment, and prospective employees are now able to be much pickier about who they work for. And admit it, most small business have lower pay, little to no benefits, and generally have bad management that drives people away to better jobs with bigger companies.

          Look how many small businesses have "Help Wanted" signs up. They can't get people to even apply most of the time.

    • The thing about economists is that you usually should not believe them because their "predictions" are almost always paid by some interest group .

      The true economic predictions and analysis, those that seek to be unbiased and that really seek to reflect reality, are almost always privately owned and treated as a trade secret. Then those small interest groups, using the real data, create the "economic forecasts for public consumption" (fake data or half-truths) that will deceive the masses for their benef
      • by RazorSharp ( 1418697 ) on Friday August 09, 2019 @03:07PM (#59071286)

        Is there anything that can't be turned into an absurd conspiracy theory these days? Macroeconomic trends are observed by many economists that don't work for partisan think tanks or corporations. For example, the linked article appears to be written by an economist who writes for Reuters.

        Skepticism is a good thing. Cynicism is like being willfully blind.

        • My friend, I've been past 40 for some time now and all this time one thing I've really learned is that all that involves money is tampered to some degree to benefit someone. I'm not talking about some "evil genius hidden on an island" of course, but power groups do exist and they are very real.
          • While I certainly agree that conflicts of interest, bias, secrecy, etc. all can taint published information, that's reason for skepticism, not cynicism. Sure the guy is paid by Reuters to analyze markets and write about it (judging by his output on Reuters and his Twitter feed, this appears to be his full time job), but I don't see any reason to suspect that somehow taints his perspective. The whole point of his job is to present fairly objective reports on global markets. I'm not saying that Reuters is who

            • by q_e_t ( 5104099 )
              Reuters has a financial management division so it has an interest in predicting recessions purely for its own internal use. It would be pretty easy to then use the information it already generates on this for that division in its news division.
      • It all depends what you mean by "top expert". It has been prove repeatedly that the more highly qualified, the more wrong an economist is" (Google is your friend ;-)

        This is because economic theory is, for the main part, a pile of crap.

        You can tell this, because, for example, if you have any experience of business at all, you will know raising the interest rate will increase inflation, not reduce it. The sign in the equation is the wrong way round.

        Why:

        • Businesses will face increased costs (they run on
    • by AmiMoJo ( 196126 )

      The numbers are for the last quarter, and the trend is downwards. So if the trend continues, we would be entering a recession.

      Of course the trillion dollar question is if the trend will continue.

  • by Lucas123 ( 935744 ) on Friday August 09, 2019 @01:31PM (#59070502) Homepage
    Everyone else is in a recession and the U.S. is going gangbusters. Isn't the old adage, "when America sneezes the world catches a cold."
    • by 93 Escort Wagon ( 326346 ) on Friday August 09, 2019 @01:37PM (#59070546)

      The Fed doesn’t cut interest rates when “the U.S. is going gangbusters”.

    • by Ogive17 ( 691899 ) on Friday August 09, 2019 @02:35PM (#59071022)
      Many industries are struggling. It's not 2008/2009 but costs are going up while revenue is staying flat... We have a hiring freeze. My brother's company has a hiring freeze. I don't know of any value adding industry that is doing well right now.
    • and the U.S. is going gangbusters.

      Did the Orange man tell your the economy is going bigly?
      Is that why US's economic growth is so stagnant that the federal reserve is stepping in to stimulate it? Is that why trade is down with all parties (not just China)?

      About the only good thing the US has going for it is that in the west it is often compared to Europe, and the UK just shat in that swimming pool pissing off all the party guests.

      The US economy can best be described as the brightest kid in a special needs class.

  • 10 years, 1 month (Score:3, Insightful)

    by DigitalisAkujin ( 846133 ) on Friday August 09, 2019 @01:31PM (#59070506) Homepage

    Last recession ended in June of 2009. This is the longest it's ever gone without a recession.

    Meanwhile Trump's actions are pushing us closer towards a recession. Tariffs are a tax on the American consumer.

    • The 2016 election postponed the Hillary Recession by a few years. Winter is coming.
      • by q_e_t ( 5104099 )
        It probably has at least as much to do with the growth rate in China slowing as anything else.
  • No it's fine (Score:2, Insightful)

    by GameboyRMH ( 1153867 )

    Trump's good and easy-to-win trade war, intentional overheating of the economy, and massive wealth transfer to the 1% will never have any consequences, just you watch!

    • Well, it won't have any consequences for the 1%. They're well equipped to weather recessions. When you're well equipped to weather recessions, a boom-and-bust cycle works out great.

  • by Camel Pilot ( 78781 ) on Friday August 09, 2019 @01:53PM (#59070686) Homepage Journal

    In fact, journalist claiming that a recession is nigh is a leading indicator that a recession is NOT coming. When journalist and pundits are claiming that the stock market is about to zoom to the stratosphere is an excellent time to go to cash.

  • by MetricT ( 128876 ) on Friday August 09, 2019 @02:12PM (#59070844)

    There are three ironclad rules to know if a recession is coming:

    1) The yield curve will invert. This doesn't *predict* recessions, it actually *causes* them by reducing bank profitability, causing them to tighten lending and reducing available credit..

    2) The Fed will start lowering rates.

    3) The "This Time Is Different!!!!!" folks come crawling out of the woodwork to explain how the first two are completely innocent in this instance and things are actually going swimmingly.

    As all three are here, I have moved my investments to 100% bonds. A Trumpster who works as an investment advisor pilloried me for this. A week later, and I'm up 3.5% while he's down 4.5%.

    • > A week later, and I'm up 3.5% while he's down 4.5%.

      You are an imbecile, bragging about his day tradiing, not an investor

  • by painandgreed ( 692585 ) on Friday August 09, 2019 @03:54PM (#59071572)
    The UK economy did shrink this quarter, and nobody expects it to not shrink again next quarter with the current government heading fast and heavy towards a hard Brexit and no way to stop them. Meanwhile, the trade war is hitting hard on US farmers who are possibly just holding on due to increased debt. It looks to spill over into electronics which will dampen tech stocks. neither China and Trump both seem to waiting for the other to blink and it doesn't seem like they are going to any time soon. I think we have yet to finalize our renewed trade deals with Canada and Mexico even. Trump is desperate to get the Fed to cut rates, which will dump more money into the system, which is great, unless we do get hit with a recession, and that will just make it worse as too many businesses and banks are caught with debt they can't pay on.
  • by internet-redstar ( 552612 ) on Friday August 09, 2019 @05:45PM (#59072230) Homepage
    The facts in this story are incorrect. The oil price is way higher than in januari this year. So, that's wrong.
    Check the '1 Year' graph yourself on http://www.oilprice.com/ [oilprice.com]
    I hate the trade war and the warmongering of the US President, but don't see the indicators of a 'recession'.
    The NASDAQ is doing great, as is the NYSE.
    This kind of news always has the potential to turn into a 'self fulfilling prophecy', but we're not there.
    But that shouldn't mean you don't have to impeach your racist 'president' ;-)
  • I like how we are suddenly in recession when Dow Jones lose 1700 points. And also I like when US and UK says that we have great economy because unemployment is all time low, which is only indicator that there is not enough job creations to counter it. Screw you all.

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