- The year 1990 had two sides when looking at the economy.
- The stock market can help predict the economies future. So, from the chart below, it is divided in half. One half of the year in 1990 expanded, where as the other portion began the recession.
- The decline of jobs in America only came months into the recession.
- In addition when Americans sense the economy is weakening they start to decline the purchase of new homes. This became apparent 8-12 months prior to the recession.
The recession of the end of 1990 lead into the year of 1991. Although it was a minor slump in the economy for Americans, some of it can be overlooked due to the expanding stock market. The economy has key indicators to look into when spotting the next recession. Some key attributes that lead to the 1990 recession can be also seen for the recession in 2008.
(Source: Recession Predictions: A Mug's Game?)
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