Recession Rebound Mechanics 101 - Inventory vs. Interest Rate vs. Severe Overall Credit Market Damage

Banks and the US Economy | Live Stock Trading News | Equities, Forex, Gold, Silver and Oil Trading

Note: rebounds from inventory recessions are sharp and strong. Recoveries from interest rate-induced recessions, such as those of the early 1980′s, are also relatively rapid. The same is true from recessions caused by consumer spending or trade swings.
However, he damage to the credit markets and credit creation takes a long time to fix. It takes time for banks to repair damaged balance sheets and to write off bad loans.

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