Recession officially confirmed by economic team on clarkhoward.com

CLARKONOMICS: Back in late winter, Clark originally said that we were in a recession. He was stunned at the time because he was catching flak from listeners who felt his comments were politically motivated. They weren't.

Then in April, Clark participated in a debate with nationally syndicated talk show host Neal Boortz and WSB-AM radio personality Herman Cain. The penny-pincher felt it was self-evident that we were in a recession, primarily because he hears calls from you day in and day out. The 2 politicos, however, swore up and down that everything was great with the economy.

Now, The National Bureau of Economic Research (NBER) has officially declared that we are in a recession and it began back in December 2007. Some predictions suggest that the recession will likely last through 2010. That news immediately caused the stock market to drop like a rock.

This will be the longest recession since World War II. Unemployment is still, by historical standards, favorable at 6.5%, though we could hit 9%.

So what actions should you be taking? Clark could trot out the usual platitudes -- start saving; don't buy on credit; and reduce debt -- but he'd rather illustrate it with the following example.

This is more than just flossing your teeth. The dentist tells you to do that everyday for optimal dental health. But until your teeth start falling out, you might not heed the advice. Well, Clark wants you to consider this a time of complete and utter tooth decay.

What others are saying

Recession update
Sorry for the typing mistake I meant to say 300 million people in this country.
By Ennis Phillips @ 12/09/08 11:28:46 PMreport abuse
Recession
Here is a simple solution to the country's recession. First Congress and the Senate have to enact a few laws regarding price hikes (ie freezing prices). Next give every legal citizen in this country $1,000,000.00. Thats right give tax free to every legal person in this country a Million dollars. There is somewhere around 3 million people in this country. Give every man woman and child 0ne million dollars. If everyone had a million to spend or invest at they're own discression think what it will do for our economy. End poverty, end hunger, end the problems with our Social security system. Every person would be able to pay for their own education. Pay for every child to go to college, improve the housing market, or buy a new car,ending the auto bail out. One million dollars in the hands of each and every american citezen would still leave seven hundred and sixtynine Billion dollars of our hard earned tax dollars alone, instead of bailing out companies who undoubtedly can't manage their own money. Freeze prices and convict anyone trying to raise them, then send out the checks. This would also eliminate the illegal aliens in this country as they would be clamoring to become legal citizens.
By Ennis Phillips @ 12/09/08 11:26:09 PMreport abuse
recession
I think we have "loosened" the definition of recession. When I was in college, it took three consecutive quarterly declines in the gross national product. Now it appears to be it is only two.

We are almost able to talk ourselves into "bad" times- and the media and politicians can exploit this easily
By Scott @ 12/03/08 09:26:54 PMreport abuse
recession
I don't need a government agency to tell me if we are in a recession. I have seen negative indicators around me directly during the past year. Hence, call it whatever you want, the fact is my budget is much tighter than a year ago even with lower gas prices.
By Steve in Missouri @ 12/03/08 07:59:26 PMreport abuse
Recession official???
"Now, The National Bureau of Economic Research (NBER) has officially declared that we are in a recession and it began back in December 2007" Told my wife in summer of 2007..."Honey we are in a 'recession'. Why did it take so long to acknowledge the fact. I just have to look at my workbook and Checkbook to figger that out.
By Mark @ 12/03/08 04:32:37 PMreport abuse
Don't know length of recession...
Clark says the committee forecasts recession until end of 2009, however the NBER has a Q & A that states:

Q: How long does the committee expect the recession to last?

A: The committee does not forecast.
By Bob @ 12/03/08 09:31:57 AMreport abuse
We don't know
It's interesting to see all the new definitions of "recession" popping up lately. These definitions would have a lot more credibility if they had existed prior to the current economic downturn.

Recession is defined as two consecutive quarters of negative growth, and so far that hasn't happened. I'm not denying that times are tough, but the truth is that we simply do not yet know whether we are in a recession. We do know, since enough time has passed, that those who thought we were in a recession last year were wrong.
By GB @ 12/03/08 08:48:00 AMreport abuse
Recession
I don't think we needed the (NBER) to tell us we are now in a recession, most of us knew it months ago, like if the boat is sinking when it's already at the bottom of the sea. Can't believe we even listen to these people.
By Guy @ 12/02/08 09:46:05 PMreport abuse

Recession update

Sorry for the typing mistake I meant to say 300 million people in this country.

By Ennis Phillips @ 12/09/08 11:28:46 PMreport abuse

Recession

Here is a simple solution to the country's recession. First Congress and the Senate have to enact a few laws regarding price hikes (ie freezing prices). Next give every legal citizen in this country $1,000,000.00. Thats right give tax free to every legal person in this country a Million dollars. There is somewhere around 3 million people in this country. Give every man woman and child 0ne million dollars. If everyone had a million to spend or invest at they're own discression think what it will do for our economy. End poverty, end hunger, end the problems with our Social security system. Every person would be able to pay for their own education. Pay for every child to go to college, improve the housing market, or buy a new car,ending the auto bail out. One million dollars in the hands of each and every american citezen would still leave seven hundred and sixtynine Billion dollars of our hard earned tax dollars alone, instead of bailing out companies who undoubtedly can't manage their own money. Freeze prices and convict anyone trying to raise them, then send out the checks. This would also eliminate the illegal aliens in this country as they would be clamoring to become legal citizens.

By Ennis Phillips @ 12/09/08 11:26:09 PMreport abuse

recession

I think we have "loosened" the definition of recession. When I was in college, it took three consecutive quarterly declines in the gross national product. Now it appears to be it is only two.

We are almost able to talk ourselves into "bad" times- and the media and politicians can exploit this easily

By Scott @ 12/03/08 09:26:54 PMreport abuse

I don't need a government agency to tell me if we are in a recession. I have seen negative indicators around me directly during the past year. Hence, call it whatever you want, the fact is my budget is much tighter than a year ago even with lower gas prices.

By Steve in Missouri @ 12/03/08 07:59:26 PMreport abuse

Recession official???

"Now, The National Bureau of Economic Research (NBER) has officially declared that we are in a recession and it began back in December 2007" Told my wife in summer of 2007..."Honey we are in a 'recession'. Why did it take so long to acknowledge the fact. I just have to look at my workbook and Checkbook to figger that out.

By Mark @ 12/03/08 04:32:37 PMreport abuse

Don't know length of recession...

Clark says the committee forecasts recession until end of 2009, however the NBER has a Q & A that states:

Q: How long does the committee expect the recession to last?

A: The committee does not forecast.

By Bob @ 12/03/08 09:31:57 AMreport abuse

We don't know

It's interesting to see all the new definitions of "recession" popping up lately. These definitions would have a lot more credibility if they had existed prior to the current economic downturn.

Recession is defined as two consecutive quarters of negative growth, and so far that hasn't happened. I'm not denying that times are tough, but the truth is that we simply do not yet know whether we are in a recession. We do know, since enough time has passed, that those who thought we were in a recession last year were wrong.

By GB @ 12/03/08 08:48:00 AMreport abuse

I don't think we needed the (NBER) to tell us we are now in a recession, most of us knew it months ago, like if the boat is sinking when it's already at the bottom of the sea. Can't believe we even listen to these people.

By Guy @ 12/02/08 09:46:05 PMreport abuse

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Dec 02, 2008 -- Recession officially confirmed by economic team

What others are saying