The Great Depression of the 1930s changed American's. Will this recession do that? (Image via Wikimedia)

Since December of 2007 the economy has been in a recession, according to the National Bureau of Economic Research, a payday loan may be all your family can use to get by in these hard times. The NBER has not just looked at lowering production rates, less employment income, and a drop in employment; they have also looked at real personal income. With all of these combined they have finally found that the drop of the economy occurred between November 2007 to January 2008. With this occurring, many households need cash advance loans to get by during this holiday season.

Recession Not Over Soon

There is no exact date that the recession will be over; history has proven it takes about six to 18 months for a recession to be through doing its harm on the economy. The current recession is one of the longest since the Great Depression. This means more than likely you will not be receiving that nice Christmas bonus that you counted on last year to get you by for the holiday season. If you have been paying your bills on time and still do not have enough money to get by try cash advance loans for your unexpected expenses.

Techniques to Save

The Holidays are the roughest time of the year to be without extra money to buy the necessary items one needs. People are not only cutting back on the amount of presents they are buying this year but also watching what kind of food they are purchasing and trying to look for the best deal they can find. As consumers, we are cutting back on things we once saw as necessities like not buying a bottle of water, instead bringing a container from home filled with tap water, or that morning jolt we thought we had to have at Starbucks has now been considered a secondary item, and only purchased on special occasions.

It is not just consumers feeling the pressure of the recession; companies are also feeling these effects. In part we have seen a large increase in the past months of unemployment and that a loss in consumer buying affects companies because they are not getting the capital they need to keep running efficiently. This leads to a lack of bonuses and incentives that normally, in a good economy, companies use to encourage their employees. So, even the boss has to cut back on spending and watch what they do so their company doesn’t end up in the gutter when the recession is all said and done with.

Hard Times for Everyone

Everyone is facing the same problems when it comes to the recession and a lack of money. Do not feel alone in these hard times; everyone is making cutbacks somewhere in their lives to make up for increasing prices on necessities. We all feel the economic pinch that is being caused by the recession. So if you are following some of these techniques and still are having problems coming up with extra cash for necessary items you need, try cash advance loans for a little extra assistance.

And speaking of recession…

Did you know that America has been in a recession since December 2007?

The National Bureau of Economic Research (NBER) has proclaimed that the U.S. has been in a recession since then, making official what most Americans have already believed about America’s slumping balance sheet.

NBER is a private group of leading economists who chart economic cycles. That it’s taken this long to determine when the current recession began isn’t surprising, considering that it takes some time to declare when a recession starts because of the final readings that must be analyzed.

What are the causes?

The downturn in the labor market throughout 2008 has been significant. Employers reduced payrolls by 1.2 million jobs – and that is just through October! Some economists predict that November will show a loss of 325,000 more jobs.

Personal income, industrial production, wholesale and retail sales all peaked between November 2007 and June 2008 according to NBER. Since then, there has been a consistent downward slide. Gross domestic product is also considered.

Wait. Isn’t a recession two consecutive quarters of economic activity decline?

No. And NBER did not give any cause for this recession. Yet it doesn’t take too much insider knowledge to see that America’s housing downturn since 2006 is a big culprit. The fall of housing prices from peak levels cut deeply into both further building and purchases.

In turn, this also caused a sharp rise in foreclosures. Then more dominoes fell, including the banking and credit crisis. The situation is not hopeless, but it is bleak.

The current recession is one of the longest downturns since the Great Depression of the 1930’s. The last two (1990-1991 and 2001) lasted eight months each, per NBER.

Focus on what we must accomplish

In a statement, White House Deputy Press Secretary Tony Fratto said that even though the recession is official, it is more important to focus on the steps being taken to fix the economy.

“The most important things we can do for the economy right now are to return the financial and credit markets to normal, and to continue to make progress in housing, and that’s where we’ll continue to focus,” he said. “Addressing these areas will do the most right now to return the economy to growth and job creation.”

How long will it go?

What’s the best case scenario? Some economists say that the economy will hit bottom by second quarter 2009. That would be the longest recession in America since the Great Depression.

Lakshman Achuthan, managing director of Economic Cycle Research Institute, has indicated that time will heal the wounds:

All the hand waving and real cash that policymakers are throwing at the problem won’t change the fact we’re stuck in this nasty recession. The ultimate cure of a recession is letting it run its course. Even with indicators in a tailspin, this still is only a very severe recession. There’s lots of gloom, but we don’t see doom.

We’re going to have to ride this out

Ever hear of a Kondratieff winter? Well, it appears we’re there now. Fed Chief Bernanke is suggesting a write down of part of the principal outstanding credit balance, rather than doing things like reworking mortgage terms or pushing more toward bankruptcy. It will take time, though. And perhaps a new gold standard (see video below).

For those of us in a temporary lurch due to that trip to the emergency room or broken fuel pump in the commuter car, payday loans are available. Doesn’t take long to apply for payday loans, either. Don’t borrow more than you can easily repay and look for budgeting solutions that will help you in the future. Changing habits takes time; ride it out.