Recession - How does it affect us & has it begun?

Originally Posted by Blondie

by the above my meaning is not being a consumer in the economy that generated the revenue not literally returning the money )

taking your given examples, if people instead of investing here, invest their savings in their home countries, the loss to this US government and economy is the loss of taxdollars (on the profits), loss of demand for consumer products that the investments produce (if you buy a home as investment property here, you have to pay the county taxes, you pay the realtor's fees, pay the closing costs, and n number of expenses associated with the purchase of a property. If selling the house which has appreciated nicely, there is money in there for the government and everybody associated with the sale of it) it is this money(sales taxes) that is funding the local governments and also the local economy.

So you mean, that the economy gives salary, creates your savings etc, none of which is invested here. Everything crosses boundaries and goes into creating wealth in other economies. Thanks. I think I understood that.

Timely post Meenloch. One another thing that might affect us - emotionally more than anything else - is a rise in protectionism. History suggests that protectionism and recession go hand in hand - quite common sense. When a person gets laid off and angry at her situation, it is easy for her to direct that anger at H1B workers. It is pretty easy to think that "she has taken my job". The ecomomic rationale for having H1B is a little more indirect than that. We would see more clamour (not necessarily any concrete policy changes) for restricting H1B visa quota etc. But we will get on with our life.

Was reading the news articles that all spill out the same thing. Recession is slowly coming up. Has it already begun? Read that Foreclosures are up by ~200%, that means this is the greatest hit of all times in US history. The rates have gone to the times of 1970s.

Hi Nandhu,

If it has begun, I am wondering when will it end???? I think they took time in accepting the fact that it is on. I believe it was on since couple of months atleast. I've heard that it takes abt. 8 mths. to end. Any idea, when will it really end???

Last time when it came in 2001.. it took 2-3 years my dear..

its not that black-white exact date.. the market has to correct itself and it take a longggggggg time since this is real estate this time