Sunday, January 11, 2009

What is the Sequence of Resession, Depresion, and Recovery

After a forest fire there is a natural sequence of reforestation. The has always been a sequence and it has been well documentented. It starts with the growth of perennials and shrubs. Then quaking aspens, and then conifers. This may take hundreds of years. There is the same sequence with a recessions. People began loosing jobs. The loss of jobs results in the loss of buying power. Which starts a cycle of more job loss. There are some jobs for the most part are not lost at the same intensity as jobs that deals with anything associated with luxury. It goes to point where only the people working in the bare essentials keep their jobs. Job loss is finished and then the economy starts to come back. As more jobs are available which increase more purchasing powers which creates more jobs. etc.

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