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Strategies & Market Trends : The Residential Real Estate Post-Crash Index-Moderated

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From: Smiling Bob6/8/2022 4:39:41 PM
   of 119360
 
There's No Stopping a Recessionary Reckoning If there was only one causal factor nudging the economy into recession, it might be a mild, brief recession. But with all five conditions in confluence, this recession will be unlike any other.

Recessions reliably arise from the confluence of these conditions. Note that any one condition can trigger a recession, but no one condition guarantees a recession. Severe, long-lasting recessions occur when multiple conditions arise at the same time.


1. The business cycle. The business cycle reflects human nature interacting with finance: as credit loosens, people borrow more to spend and invest, and this generates a self-reinforcing virtuous cycle of expansion.

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