NJ5 on 03 July 2009
| Avinash_Tyagi said: Employment is one of the lagging indicators of a downturn because companies don't start hiring until they see things start to turn around |
Your last statement is true, but it doesn't mean employment is a strictly lagging indicator. In a consumer-led recession, the turn around can't start before unemployment starts letting up. Simple logic there I think.
I really want to know how this recession can end while people are losing their jobs and lowering consumption, with their homes getting foreclosed pushing them even farther into poverty.
IMO there's just one way for the recession to end, and that's for more people and companies to get out of debt (either by paying their debt or defaulting on it, the latter of which will cause the banks and the government to lose a lot money due to bailouts).
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