One of the things that annoys me more than anything is when members of the media avoid coming out and confirming things that just about every American, regardless of their level of education, already knew. This was the case with the latest “news” that the United States has been in recession since December, 2007.

While the fact that we are in recession draws a great deal of concern in itself, the one thing that is more frightening more than anything is the prospects of how long this current recession could actually last.

Recession Lengths Since WWII

As the chart above shows, it already appears that this current recession will be one of the three longest lasting since World War II. What’s even more frightening though is the fact that this recession could very well surpass those of the mid 1970’s and early 1980’s.

So how long will this recession actually last?

My guess is that surpassing the 16-month mark will be no problem this time around, as the stakes and costs are much higher than they were compared to the recession of the early 1980’s.

While there are many similarities, including the struggling housing and domestic automobile production markets, drawing parallels between the actions taken in the early 1980’s and the bailout culture that has taken over Washington today simply cant be done.

During the recession of the early 80’s, inflation was as high as 10.8%, and was eventually brought down to 3.2%. Today, the rate of inflation appears to maintaining a steady range between 2-4%.

Furthermore, one of the mechanisms used for boosting the economy out of recession was deficit spending. However, after a $700,000,000 bailout, plus a variety of others, it’s going to be extremely difficult to use deficit spending without severely jeopardizing the financing ability of the United States.

With that all being said, I see no reason why an 18-24 month recession isn’t possible.

But please note, I’m not an economist, I just call things as I see them.

If you have some thoughts on the now confirmed recession, please don’t hesitate to share.

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