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It's a cycle

A lot of you don’t give a fig about whether we’re in a recession or not. You’ve told me, in response to my Saturday story in which another economist said Florida is in one.

You may not realize it, but I really don’t care either.

I don’t care what we call it. We all have a very personal experience with this economic downturn. It’s real. It’s troubling. It’s going to last for a while. And the only question is how we’ll be when we get to the other side of it.

Because these things end. Average recession length is 10 months. Last two have been only eight months. And we’ve already been in this downturn for a while.

One thing I remember from one recession in the past was that stock markets usually turn up six to nine months before the recession ends. It’s worked that way in the past. I hope it works that way this time.

So I’m looking for that.

We’ll still have gloomy economic stories and headlines. I’ll probably write my share of grim news. But it’s a cycle. And it will end.

POSTED IN: Economy (26)

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It will end, but how much damage will have been done, and where does that leave us? This is not your father's recessison. The fundamentals - years of speculative excess, surging world middle class and strain on resources, etc. have changed the rules of the game. We might come out of this just fine, who knows, but we shouldn't assume everything will eventually go back to "normal." Trillions of dollars of personal wealth has evaporated (mostly in home equity) and the stock market is still probably overvalued. I don't know the answer and don't want to be alarmist, but it's scary.

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You've got the job of managing your money. No one in school taught you how.

But you and I, we can teach each other, how to handle it, how to save for retirement, how to make money... < More >

Harriet Johnson Brackey Harriet Johnson Brackey, the personal finance writer for the Sun-Sentinel, has been an award-winning business...< More >

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