During my free time, I had spent some time looking through the historical notes and information regarding the topic of Recessions and Depressions. I came across the different periods of Recessions that took place during the period of 1900 to 2008, The average length of a Recession is about 365 days, While in the year of 2001, the time of the recession was about 8 months, while the Recession in 2008 took about 18 months.
Glancing through the discussion forums, Youtube channels and of course the presstitutes from the Mainstream Media, the common question that was asked was :
How Long will be the 2020 Recession last?
It’s a good question to ponder as we see humanity is struggling with the Coronavirus Pandemic as well as the global economy is almost halted completely; The longer this economic lockdown and quarantine situation continues, the worse the financial and economic consequences and the suffering is going to be. Not an easy time to be in as many folks within your friends and family circles are sharing their fears and concerns and events like unpaid leaves, quick employment terminations, furloughs, etc.
A lot of politicians and bureaucrats have initiated lockdowns and imposed curfews that have halted all kinds of trade and commerce and there Is no end in sight as the number of confirmed cases and exponentially risen as well as the gradual cases of deaths and reinfections have risen again, which have sounded the alarms of the second wave of infections. The hope is that they could solve this crisis soon and hope everything will be back to normal. But, I doubt there will be normalcy in the situation anytime soon. We will all experience and enter a new world to learn and adapt; The faster we accept that things have changed the better it is for us to cope, survive and hopefully to thrive in a new paradigm or new normal for the lack of a better word.
Going back to the above-mentioned question:
How long will the 2020 Recession last?
I would like to find out what is the exact definition of a Recession?
A Recession is defined as a significant decline in general economic activity in a designated region; it is typically recognized as two consecutive quarters of economic decline
In simple terms, 6 months of Economic decline. With regards to 2020, technically we are not in a recession yet as things started to go down in March, so we still have a while to declare Recession in terms of the economic aspect, but if we go according to the stock market, we have started to enter in a recession and really fast, As you know in the month of February,
We saw the fastest 30 % sell off ever, exceeding the pace of declines during the Great Depression, plus we have the Record rise in unemployment claims of 10 Million.
Right now, in our respective areas, we are facing some degree of lockdowns initiated by our respective governments and halted all kinds of economic activities in an effort to purge this pandemic.
I was asked another question, which I feel is very important:
How long it will take for the people to start spending their Money(currencies)?
Unfortunately, this COVID -19 pandemic is locking people up in their homes plus governments across the world have made campaigns to keep people inside. Many folks during this period have experienced some sort of situations like layoffs, furloughs, etc., which will only prevent folks in spending their currencies. In the United States, even if the people get their stimulus checks from the government, people would still need jobs to be comfortable to start spending. This would be the time to save your money; if you are going to keep saving till this pass then I would suggest keeping your money or currencies into an online bank that will give you an interest. Another question to be asked is
When would Businesses be allowed to be open again?
This is a great question as it depends on the pandemic and when it will subside completely. Once the businesses are opened, Do you think it will be possible that things will be back to normal? I’m guessing somewhere in the range of 3 months to 6 months. Hopefully, we can see some sort of recovery and a quick one if that can happen.
I’m sure by now, this situation has caused a Ripple Effect, This created a wave of shutdowns like for example with the Airlines grounded, the supplier’s revenues have dropped down to a point where they have to shut operations till further notice, which have caused layoffs and reduced wages, etc. to a point that if this lockdown continues most businesses will not be able to come back again.
COVID-19 is just a pin that burst the Financial and Economic system like it’s a big bubble revealing the true weakness in the financial and economic systems in place.
Only time will tell how worse this Financial Crisis can get.
Be Safe, Increase Your Financial Confidence, Raise Your Human Capital and let’s work together to bring Economic Freedom to The Whole World