Is A Recession on Its Way? There’s Some Warning Signs

Is A Recession on Its Way? There’s Some Warning Signs

Are you worried about a recession?

Coming Soon
Total Votes : 116

Scroll down to see how people across America voted.

None of us were born anywhere near when the first recession took place in the United States, which is known as the Panic of 1797 that resulted from land speculation, this was 222 years ago.

After the first one there were four more recessions during the time, over a century, between then and the one every history class teaches you about, the Great Depression, which lasted from 1929 to 1938. The biggest economic crisis in the history of the country where unemployment reached a whopping 25% at the peak of it, which wasn’t any better considering the massive drought.

Fast forward another few recessions, this time 10 in total, that took place in those 70 years and we are in 2008 when the Great Recession began, which is has been the worst financial crisis in the US since the Great Depression.

If you’re keeping track, or not, of the total number of recessions, it comes out to 17 in 222 years. Now, with the Dow recording its worst day of the year in recent weeks, international trade fears and a recession indicator popping up, there’s no doubt that many are worried about the arrival of an 18th recession in the near future.

The indicator that’s been highlighted is that investors began to purchase a lot more bonds that caused the yield on 10-year Treasury to fall below the yield on the two-year one. This historically indicates economic slowdown and hasn’t occurred since 2007, so recession talks began when the inverted yield curve shows up.

Internationally, there’s the obvious economic fears all over the news, being the trade war with China over the tariffs that the US is putting on countries like this one and Mexico. Then, there’s the news that the biggest economy in Europe, Germany, contracted .1% this quarter from the previous one with issues in the auto industry and international trade.

The White House seems to have noticed that this trade war could lead to a heavy economic impact if the US didn’t do anything, so the Office of the U.S. Trade Representative said that tariffs would be delayed on some products, such as consumer goods. This delay allowed for the stock market to have one of its better days in recent times, but it seems to be a temporary solution to an even bigger issue, or issues, like Fiona Cincotta, senior market analyst at City Index, said, “Blink and you missed it.” So, as news develops and decisions are made by officials, we will see how the US economy fairs in the coming months.

Here’s how people on the Zip app are weighing in on this all over the country!

Are you worried about a recession?

23% Y – I am
77% N – Not at all
20% Y – I am
80% N – Not at all
31% Y –I am
69% N – Not at all

Y – I am

N – Not at all

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