What causes an economic recession? - Richard Coffin

How can factors like inflation, supply and demand, and interest rates trigger recessions? Learn the economic basics of modern markets.

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For millennia, the people of Britain had been using bronze to make tools and jewelry, and as a currency for trade. But around 800 BCE, that began to change: the value of bronze declined, causing social upheaval and an economic crisis— what we would call a recession today. So what causes recessions? Richard Coffin digs into the economic fluctuations that affect our modern markets.

Lesson by Richard Coffin, directed by Augenblick Studios.

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[Sampson-jhyq]

Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid crisis, and even pull it off easily in a favorable economy. Unequivocally, the bubble/collapse is getting somebody somewhere rich

[albacusBC]

It's sad how difficult things have become in the present generation. I was wondering how to utilise some money I had. I used some of it for e-commerce business, but that sank. I'm thinking of how to use what's left to invest, but I don't really know which way to go.

[GorkemHernandez]

Market highs can sometimes be followed by corrections, but predicting the timing and extent of it is challenging. I've heard some analysts talk about a 'massive' correction. It makes me wonder if it's time to adjust my $2M portfolios or maybe even consider some defensive investments.

[poweroffriendship.]

_"It's a recession when your neighbor loses his job; it's a depression when you lose yours."_

*~ Henry S. Truman*

[MegatPage]

The most important thing that should be on everyone mind currently should be to invest in different sources of income that doesn't depend on the government. Especially with the current economic crisis around the word. This is still a good time to invest in various stocks, Gold, silver and digital currencies

[bobbymainz]

Recession is most likely the result of an external factor. For the first time in decades, the United States is losing its clout as a federal reserve currency. They don't have any more economies to use to control inflation, and less money is being spent on stock and oil trading than in the past. They all lend support to the idea that a new multilateral world order is in the works.

[Riggsnic_co]

Some economists have projected that both the U.S. and parts of Europe could slip into a recession for a portion of 2023. A global recession, defined as a contraction in annual global per capita income, is more rare because China and emerging markets often grow faster than more developed economies. Essentially the world economy is considered to be in recession if economic growth falls behind population growth.

[elvismark]

Yes, the dangers are greater, but isn't the current business sector just as risky? The majority of those adopting these tactics are earning substantial gains. What I gather is that rather than long-term trading, instantaneous trading is the preferred method for managing this downturn and rapid expansion.

[matturner]

Recession is often the result of external factors, and it appears that the United States is losing its grip as a federal reserve currency.
With a decreasing ability to control inflation and a reduction in stock and oil trading, it seems that a new multilateral world order is on the horizon.

[ShadowKick]

Oh hey, I'm not even 30 but I got to live through 2 recessions already. Neat.

[shellylofgren]

We experienced the peak of our era, and now it is gone. Recession is tanking everything including 401K. My retirement equities portfolio of $750K is in the reds. I keep losing because of inflation. This world will fall to the corrupt rulers in the same way that Rome did. I'm sorry if you're thinking about retiring and you're worried that your pension won't be enough to meet the rising cost of living. Horrible foreign policies everywhere, bad regulatory policy, bad fiscal policy, and bad energy policy.

[ClementRusso]

It's hard to predict the future until we see this month’s inflation results. However, historical data consistently show that stocks tend to outperform bonds in the long term. Therefore, I'm staying in the market and focusing on selecting high-quality stocks. The challenge lies in identifying these stocks.

[kortyEdna]

This global recession/collapse might end up being a part of us for a very long time. With inflation currently at about 9%, my primary concern is how to maximize my savings/retirement fund of about $680k which has been sitting duck since forever with zero to no gains.

[kashkat]

As we get deeper into this recession more people will lose their jobs which will expand the inventory along with homebuilders delivering their massive backlog .In my opinion Inventory could keep building for a few years .The more inventory that builds up, the more desperate sellers are going to feel and will be cutting prices . Fear drove it up and fear is going to drive it down.This is what the beginning of a crash feels like.I would rather buy at a cheaper price and a higher interest rate. I can always refi when rates come down but I don't want to buy a depreciating asset. Thanks again for a great show with facts backed by real data

[Zoesus]

I got this notification while sitting in my macroeconomics class while discussing inflationary and recessionary gaps...

[erichkraetz]

"If there is one common theme to the vast range of the world’s financial crises. It is that excessive debt accumulation, whether by the government, banks, corporations, or consumers, often poses greater systemic risks than it seems during a boom." -- Carmen Reinhart It's a good time to take a beat up 401k and do a Roth Conversion if your stocks are really beaten down. Then you'll only pay taxes on the much lower current prices, and your Roth will be tax free.

[Mrshuster]

Some of the most respected analysts in the fields of markets, business, and economics have been expressing their opinions on how severe they believe the next downturn would be, as well as how far stocks may have to go, as concerns about a recession grow on Wall Street and inflation stays well above the Fed's 2% target. My objective is to have a portfolio worth at least $850, 000 by the time I'm 60 years old, so I need suggestions and guidance on what investments to make to position myself for retirement.

[jenl]

me, taking economics, seeing the good old S & D graph: hello darkness my old friend

[bernadofelix]

Global financial markets have been significantly impacted by SVB's demise, prompting investors to sell off bank equities hastily and reevaluate their interest rate expectations. I am a $350, 000 investor who is at a crossroads and wondering if it is wise to hold onto securities that are losing value. I want guidance on the best approaches to maximizing my returns in this negative market.

[tzwacdastag]

what do i like about Ted:
a) The are for non profit.
b) They are selfless.
c) They are the best!