Corona crisis: are you ready for another recession?

"Great Depression" is a very common phrase for us. It began in the US, through a fall in the capital markets. The day was October 24, 1929, Thursday. In a day, the price dropped sharply in the stock market. Terrified people sold 12.9 million shares in one day. That day has taken the place of 'Black Thursday' in history.
The economy was already decaying. The share price went up much higher than the value of the company's assets. From the outside, it could not be comprehended. When aware people's confidence in the stock market receded, fear of bankruptcy, people started to sell secured shares rapidly. There was propaganda for so long that the economy was pretty quiet. It turned out that it was nothing but bullying. Originating from the United States, later spread to Europe. In the first phase, this slowdown in the economy continued till March of 1933. One-fourth of all people become jobless. Within months, unemployment in the city of Berlin increased fourfold. Global GDP is lowered by 27 percent.
People reduced shopping. The production system stagnates. The wheels of the economy stopped. Many people just spent the day, eating potatoes. Hotdogs became very popular at that time. As it was cheap on price and satisfy one's stomach fully. At that time the government changed. Franklin D. Roosevelt, a Democrat, was elected president by a huge margin. He closed the banks for four days. He announced a 100-day emergency program and some effective measures, known as the 'New Deal'.
Corona crisis: are you ready for another recession?

Will there be a recession in 2020?

We are on the verge of another recession. No, the previous sentence is not an inauguration or a gathering to welcome, the economic downturn began with the shut down of global flights, hotel tourism and the closure of factories. Nearly all countries are affected. If this situation goes on for longer, the economy will be difficult to handle.
China's central bank has already warned the world to be prepared for a second recession. They assert - though the risk is low, the world must be ready for the worst. The country's central bank chief, Zhu Jin, explained in an interview to the local media recently that the situation was completely out of control and that the risk could be exacerbated if the current condition continues- The South China Morning Post reports. The Bank of China says the damage caused by halting all economic activities in urging public health is impelled economists to reckon that the economic collapse of COVID-19 will be more severe than the global financial meltdown of 2008. Even a situation like the Great Depression of 1929 could happen. In all, the business has been in a big crisis.
The deadly virus causes the American people to become jobless. According to data from the country's labour department, up to March 25, about 6.7 million people have applied for unemployment allowance, which is a record. In the first two months of the current year, both China's imports and exports have waned drastically. This state of the economy is a red signal to the whole world. Mainstream financial companies such as JPMorgan, Goldman Sachs, Morgan Stanley fear that the United States' gross domestic product (GDP) rate will decline by up to 6 percent in the first quarter. In the second quarter, it could be up to 24 percent. Credit rating agency Moody's warned that up to 30 percent of US home loans could be suspended as unemployment rises and small business hampers.

What happens in an economic recession?

Now, let us know the official explanation of what is a recession. The US National Bureau of Economic Research says, the downturn is a slowdown in economic activity and will last for months. The crucial point is that gross domestic product (GDP) will reduce, industrial production will curtail, product sales will decrease. The impact on people's lives is that income will be deducted.
Recession, when prolonged, becomes a depression. Economists think the recession revolves around a certain period of time. Again, war, bad economic management, diseases etc. can lead to recession.
According to John Maynard Keynes, a British economist, an economy is hanging on the continuation of income and expenditure. People spend on the certainty of income. With this kind of disruption, the economy is trembling.

Preparation for an economic recession

The government may empower various assistance to low-income people during such recession. But for a long time, those who have lived an affluent life with a good job or business, those working and fixed income people may have to confront danger. So now we have to take some steps to insure our family's finances. Read the full text.
The famous US magazine Forbes published an article last October, offering some directions on how to protect yourself from recession.
The first of which is the creation of an emergency fund. Responsible people save money to run their own family for about six months. Even if you don't get six months, keep at least the equivalent of three months. Forbes says the most important thing you can do now is to create a fund now. As part of a medium-term and long-term strategy, you can open a savings account at the bank where you are paid. The bank will deduct the money in the depository only if there is a salary. Since it will not come in handy, there is no opportunity.
Corona crisis: are you ready for another recession?
If that occurs, your salary or income is not high enough to make a good percentage of money within a few months, then Forbes' second advice is for you. This is to curtail costs. Deducting costs comparable to 13 to 20 percent of the payoff is not a difficult task. Make a list of your expenditures for this. Find out some of the costs that can be lessened from there. If you have a complete list of home rent and other services, how much is the cost of living, the market cost, the cost of children's education education, expenses - you can figure out actually where you can reduce your expenses. If you have a well-funded emergency fund, there is no need to reduce costs. If the funds are rented out, then what do you have to do without ruthlessly cutting costs. The advice after Forbes is that if you risk losing a job or business, look at it contrarily now. When the recession comes, there is no need to be an easy victim to leave the organization. Financial adviser Lisa Frazier provided suggestions in Forbes' writing. Remember, when a company goes bankrupt, the financial adviser doesn't have his job. That is why preparation and decision making are the most important in our own thoughts and experiences.
On November 25, 2008, Forbes - during this recession, another article on personal investment was published, titled 'Next Recession Is Coming, Here Is How To Protect Your Portfolio'. In it, the author says, first calculate how much money you can spend over the years. Put in various savings schemes like bonds for that money. According to the second, it can be risky to take the rest of the money out of secured money. In this case, make a long-term investment in the capital market. If you do this for five years, you will see that profit is coming.
Personally, I like the suggestion by Bonaparte, a member of CNBC's Digital Financial Advisor Council, the US media. In a report released last August, he remarked, keep the stock market away from the family. Don't put this pressure on your family'. Even if you old, use the refrigerator for a few days. Don't look at a handful of new models. Good if you don't buy shoes. To prevent costs, you can avoid running the air-conditioning machine (AC), omit eating coffee, skip eating out. Reducing market costs is not easy. Still have to try. Tell your spouse, children, about your employment. Encourage them to adapt. If the family is by your side, no crisis is really a crisis.
At last, it's a ray of hope that some economists including Ben Bernanke, the former chairman of the Federal Reserve furthermore anticipate that, despite the global collapse, it will not be as severe as the crisis of the thirties. Because when the lockdown goes up, the economy will recoup normally.

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