I'm not sure why there is such a controversy about whether or not we are in recession, when in fact, recession is always part of the economic cycle. Sooner or later, we will come into one, just like bear markets. Call it a recession, an economic slowdown, or just a bad year for business, it is something to be expected. I'm only 50, but I can recall more recessions than I care to. I think it is probably because we are in an election year and everyone is wanting to treat the economic slowdown like it is some special phenomenom, when in fact we were in a recession earlier in this decade. Yet, everybody seems to have forgotten about that, and some are acting like we are headed for a economic apocalypse.  But, I can recall what seem like worse situations.

Seems it was just over five years ago, the nation was poised to launch a disastrous war, the space shuttle had disentigrated upon re-entry, the SARS epidemic threatened Asia - and Toronto (which was a bit too close to home), stocks were sliding downhill again (just as we thought the bear market was over) and yes, the economy was looking bad. The nation was in a funk. Yet, the economy eventually flourished, the stock market rallied again and we enjoyed a 4-year bull market run, while unemployment dropped below 5% again and a lot of people find themselves in a home for the first time (and maybe the last time). But, a lot of people will want to point to the meltdown in the housing market like its an economic castastrophe without precedent. Except there is a precedent - the collapse of real estate and the S&L meltdown of the late 80's. I'm personally convinced that crisis was even worse, because it was more widespread, and the effects on my local economy were obvious for years afterwards. And yes, it took years for the housing market to upright itself. Yet, the stock market offered nice returns from '91-'93, and hit a bump in '94 (almost breaking even).

I wouldn't try and call the outcome of our current economic problems at this point. I think we'll get our answers soon enough, and I think a lot of the conclusions that have been made by others will prove to be premature. As always, thing can get better or they can get worse. Which is to say, I think we are in for more of the same.