Dow Drops

Tyra Monger
12/1/08
Business Economics
Current Event

This week I read about the stocks from Dow dropped to 680 points. The article was written by Michael M. Grynbaum 37 minutes ago at 2:45 pm on December 1st 2008. It is said that a recession is going to be coming. Some things that are saying we are going toward a recession are slower production, unstable wages and the highest number of lost jobs. National Bureau of Economic Research waited until now to say it. Wall Street has been on the verge of problems for many months now. The main banks have dropped almost 20 percent each one of them. Oil expects that in January the delivery price will be $49.34 barrel, down $5.09. Mutual fund managers are taking this as a moment to buy these stocks that are so low. 300,000 jobs might be cut in November. It is said to take years to drop about 8 years, but in the fall companies dropped that much in one day. “A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators.” “A recession begins when the economy reaches a peak of activity and ends when the economy reaches its trough,” the members said in a statement. The US was in a recession about a year ago. The manufacturing industry had its worst month since 1982.

I think that we will just have to figure this out. We really are on our way to a recession. After this war we are so much in debt. Mostly to China, but to other countries we are in debt as well. To get out of the recession is probably not coming any time soon. It might not even be in my lifetime. That would be really bad.