Monday, December 08, 2008

American Depression and Recession

According to Anthony Karydatis, a US economist, the Great Depression of 1929 lasted 43 months from August 1929 to March 1933. Gross domestic product contracted by 28% between 1930 and 1932. Unemployment rate surged to 25%.

In the 1973 to 1975 recession, the unemployment rate went up to 9%. This recession lasted 16 months.

In the 1981/1982 recession, the unemployment rate was 10.8% at its high. This one lasted 16 months. Interested rate was sky-high at ........(not sure how high it was).

In the 1990/1991 & 2001, the recessions were short-lived, about 6 months.

The present recession started in December 2007. Unemployment rate presently is at 6.7%.

I understand that interest rate is now at 0.5% and heading lower. It may go down to zero.

How much longer will this recession last? If you have any opinion, you are welcome to have your say.