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Recession, say what?

February 22nd, 2008 at 07:45 am

So, I have heard people say that there's already a recession. But mind you, a recession actually has a technical definition: 2 consecutive quarters with negative GDP growth. Now, I concede, macroeconomics is a fairly difficult to understand subject, and I'm no expert at it. But I do think it's obvious, that, for some people, the economy has a worse impact than for others, and for that reason they're quick to use the 'R' word.

I just got my Tax refund, so I must say that I feel I have not been negatively affected by the economy. In fact, it allowed me to refi my mortgage at a great rate, and I feel like I'm better off that way. Now, don't get me started on the lower yield rates, but I don't think that has that much of an impact on me, you know maybe $5 or $10 a month, but nothing big.

But who needs money, when you have a wonderful wife?

3 Responses to “Recession, say what?”

  1. luxlivingfrugalis Says:

    Right - people are quick to use the R word...

    Most 'think we are on our way to a recession' would probably be the best spin on what's really happening.

    I hope your wife knows how wonderful you think she is???

  2. merch Says:

    Technically, it's real GDP, but you are correct about negative growth for 2 quarters. The real gdp just negates the inflation aspect and discounts the GDP to 2000 dollars.

    Also Q3 2007 real GDP was 4.9 and forth quarter preliminary GDP (final due 2/28) is 0.6. Slower growth but positive growth none the less.

    source: http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

  3. fern Says:

    I considered refinancing my 6% mortgage a few weeks ago when my bank was offering a GREAT rate for 15 yr fixed: 4.365%. However, total closing costs with points would have been about $3,000, and i decided against it. I can achieve the same thing as a refinance by simply continuing to make large prepayments each month, the goal being to pay it off quicker and save interest in doing so.

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