Recession watch: Are we there yet?

CNN recently found that 74% of Americans think the economy is in a recession.  But, according to the technical definition of a recession, this is impossible.  How can this be???

One widely accepted definition of a recession includes the observation of two quarters of declining growth (as measured by GDP).   But, when it comes to a word like “recession,” does anyone actually care about the textbook definition?  Apparently not.  It appears that the recession jitters are contagious!  You can catch them at the gas station or in the dairy aisle of your local supermarket. 

Maybe recessions aren’t just about GDP growth.  Perhaps they reflect consumer sentiment regarding jobs, prices and the economy among other things.  In any case, the combination of job cuts, rising prices and a massive credit crunch probably does not bode well with most consumers.

Many people don’t need Ben Bernanke to confirm the country is in recession, because they already think it is.  Besides, Warren Buffett said so.  And who is going to argue with him? ;)

Do you think the economy is in a recession?