When do they call a downturn a recession?

[sptrawler]

If they take out the mining expenditure from the economies statistics. I would be very suprised if we are not in a recession. It really isn't very funny, when we should be riding the crest of the China wave, why am I in cash.
I suppose this is the problem when you are using a one sided tool to fix a multi faceted problem. Just relying on the RBA and interest rates, rather than applying different tax measures, ends up with everybody coping it.

 

[tothemax6]

Would be better if there were no RBA, and no tax.

A recession is negative GDP growth, a downturn is less GDP growth than there was, and a depression is a recession + FDR.

 

[burglar]

... a one sided tool to fix a multi faceted problem. Just relying on the RBA and interest rates, ...

RBA boss defends monetary policy!

http://www.abc.net.au/news/stories/2010/09/20/3016584.htm

"He also addressed concerns that interest rates are a "blunt" tool that do not take account of the two-speed economy."

 

[skc]

Would be better if there were no RBA, and no tax.

A recession is negative GDP growth, a downturn is less GDP growth than there was, and a depression is a recession + FDR.

Technically recession is 2 successive quarters of negative GDP growth. So we can't be in a recession until end of July at the earliest.

 

[Aussiejeff]

Technically recession is 2 successive quarters of negative GDP growth. So we can't be in a recession until end of July at the earliest.

It will be "The Recession We Never Had To Have".....

 

[trainspotter]

"Clearly the data out today is showing a much weaker (economic) picture than the Reserve Bank had assumed and we may see a change in it's language when it does release the interest rate decision on Tuesday," Mr James said.

Read more: http://www.news.com.au/business/bre...ta/story-e6frfkur-1226066380147#ixzz0pUagM8IT

Whooopsieessssss ........ Maybe 7 rate hikes PLUS the banks gouging is having an effect?

 

[IFocus]

The old joke is a recession is when your next door neighbor losses his job, a depression is when you loss yours