New York City, New York (PRWEB) April 17, 2013
The article “Can We Learn from Past Recessions?” published by FinancesOnline.com shows that certain patterns are discernible in the worst U.S. recessions that started since the nineteenth century. In which case, why can’t industry soothsayers predict it coming?
To illustrate some recurring causes, the article creates a parallel look at the subprime mortgage crisis with a similar event that happened centuries before, the Panic of 1797, which involved a familiar house in Pennsylvania Avenue, Washington D.C. In fact, land speculation has had happened many times, crisscrossing with historical events, such as the war between the U.S. and Britain and grabbing of Indian lands as the country expanded westward.
The article also explains how too much lending can backfire like what happened at the tail-end of the railroad, oil and banking growths in the1800s. Stock speculation was also a major cause of past recessions. However, the article shows how the regulators may have already tamed this monster, or at least, how the government can smell this speculative maneuver a mile away. In fact, in the course of historical recessions, the U.S. has kept adding safety nets to address the weak links in the economy. But are they enough? the article asks.
Here are more insights shared by the article:
Likewise, the article also shows that recessions, like earthquakes, can vary in magnitude. Some are contained in an industry, while in worst scenarios like the Great Depression in the twenties, the impact is felt across industries, countries, and social classes.
What can a regular American do in the face of a downturn? There is no clear answer, but the article suggests a way to soften the impact and it’s tied to one’s personal finance. The rich may be hit hard by a recession. Sadly, the poor are hit hardest. But it doesn’t mean people who live by their paycheck cannot do anything to brace themselves for recession, so the article challenges readers.
The irony is highlighted in the article in FinancesOnline.com, how the past recessions can give us clues on future downturns, and at the same time leave us still with our hand in the cookie jar.