Thoughts on the 2007 Recession

Lets take a look back at U.S. economics. We have enjoyed a historic "59 month" expansion. WOW!!! What a record!

According to the National Bureau of Economic Research (NBER), the agency that officially determines the timing of economic expansions and contractions, the U.S. economy has experienced 31 periods of sustained economic expansion since the 1850s and the average length of these economic expansions has been 35 months. This
makes the current economic expansion, to date, three times as long as the average economic expansion during the past 150 years.

The duration of recent economic growth is indeed very impressive given the record- breaking length of the current expansion, but recent economic growth is even more remarkable due to the fact that the current expansion followed an economic expansion during the 1980s that lasted 92 months, and these two economic expansions were separated only by a relatively mild eight-month recession in 1990 and 1991. As a result, during the past 207 months (17 years and three months), the U.S. economy experienced economic growth during 199 months or 96% of the time. These two economic expansions mark the longest back-to-back expansions in U.S. history.

WOW!!! That's impressive considering that 911 happened and media experts claimed we were on the brink of recession since 2000? Apparently...none of that was true? huh?

Here are the facts:

Recessions historically last on average from 8-16 months. (Since the current recession started in December 2007...it would mean we have another 4 months to go before expansion begins again)

Expansions generally last on average from 35-59 months.

It's the laws of economics. Things will always go up and down, up and down, up and down. Recession will always follow expansion. But know this....after recession comes expansion!!!

If we only have 4 months to go before expansion hits again, don't you think that NOW is the time to position yourself for that growth? Don't you think that NOW is the time to prepare yourself for that expansion?

According to statistics and history that expansion is due to begin in 2009. Get yourself ready!!! It's comparable to surfing. If you are going to ride a wave, you need to position yourself in front of that wave BEFORE it becomes a wave. It's called "catching a wave". If you don't prepare yourself and get yourself ready to surf that wave you'll miss it! Now is the time to prepare yourself for that huge financial wave of opportunity...during recession....not during expansion. We have approximately 3-4 years of expansion on its way.

"Get ready and surfs up, dude!"