Does recession still exist or is it just a phobia?

While the U.S. President Barak Obama keep speaking about recessions and finding ways to improve the economy researches has been brought out a sparkle in the whole scenario by saying that the U.S. economy exited recession in June 2009. It open up a way for several questions: Are we carried away by something that doesn't exist? Should we expect another recession?

The National Bureau of Economic Research said that the U.S. economy exited recession in June 2009. "The recession lasted 18 months, which makes it the longest of any recession since World War II," the bureau said in a statement.

Despite economists' warnings of a double-dip recession, the bureau said the economy had recovered enough that any new slide would constitute a new recession. "The committee decided that any future downturn of the economy would be a new recession and not a continuation of the recession that began in December 2007."

The basis for this decision was the length and strength of the recovery to date. At the same time it warned that "economic activity is typically below normal in the early stages of an expansion, and it sometimes remains so well into the expansion."

Unlike many countries where a recession is defined as two consecutive quarters of shrinking growth domestic product, in the United States it is determined by a seven-member NBER panel.

Although the depth of the crisis had already been clear, the NBER confirmed it was longer that those which began in 1973 and 1981 and which both lasted 16 months.

"we've got the best workers in the world; we've got the most dynamic economy in the world. We've got the best universities, the best entrepreneurs in the world. But we still have a huge competitive edge." These recent words of Obama may be a hope to all.
http://www.siliconindia.com/shownews/Does_recession_still_exist_or_is_it_just_a_phobia-nid-71809-cid-3.html