In economics, a depression is a term commonly used for a sustained downturn in the economy. It is more severe than a recession (which is seen as a normal downturn in the business cycle). Considered a rare but extreme form of recession, the start of a depression is characterized by unusual increases in unemployment, restriction of credit, shrinking output and investment, price deflation and/or hyperinflation, numerous bankruptcies, reduced amounts of trade and commerce, as well as violent currency devaluations. Unlike a recession, there is no official definition for a depression, even though some have been proposed. Generally it is marked by a substantial and sustained shortfall of the ability to purchase goods relative to the amount that could be produced given current resources and technology (potential output). One could say that while a recession refers to the economy "falling down," a depression is a matter of "not being able to get up."

Also, this might belong in the Soap Box. I don't know how people are going to comment on this thread.

5/23/2008 2:38:28 PM

words
that was a lot of typing to explain a simple analogy most of us got in the first place, and didn't even find interesting to start with
or a wasted copy/paste effort

5/23/2008 2:39:23 PM

\words

5/23/2008 2:39:51 PM

i'll save your thread!!!!!!

5/23/2008 2:41:11 PM

Thank you, poopface!

5/23/2008 2:41:54 PM

5/23/2008 2:48:27 PM

downturns in the economy are a sort of culling of the herd, periodic wildfires spurring forest regeneration. yeah, it sorta sucks while it's happening, but in the big picture, it's beneficial.

as far as the stock market goes (which is not synonymous with the "economy", but not unrelated, either), i love it when it falls. it gives me a good chance to buy in at a discount. same thing with the housing market--all of these dumbasses who broke their finances and fucked up the housing market by being idiots are just hooking me up with deals on real estate when I buy (hopefully the market doesn't begin to recover before spring '09 when I'm in a position to buy).

5/23/2008 2:59:02 PM

hey poopface, i am RAPING that server where that pic of that girl was from - it's not protected and damn there are a lot of pics

5/23/2008 3:01:49 PM