Everyone is aware of the economic hardship that the people of United States dealt with in 2008 and 2009. With the economic recession causing loss of jobs, house foreclosures, and major credit card debts the prospects of the future was stark and gloomy. Yet, after a New President is elected who is also from the opposite Party of the previous President, has things become well? With the newly elected President Obama from the Democrat Party will the recession ease and decrease?

Since the recession, the U.S. dollar has been losing its value as gold prices goes up. Luxury items are discounted to lure consumers during the economic crisis. Consumers have become cautious with spending money because getting a job and earning money is very difficult during the financial recession. People do not splurge anymore but shop with caution. The 2009 Black Friday is not as crowded as the 2008 Black Friday. Consumers have become more aware of the economic recession and thus, are shopping with sizable caution. Consumers now think hard on what to spend money on and usually will score what they need and not want they want. Consumers are skeptical of the future and how the recession will play out. Will it get better or worst? Fear of recession increasing rather than decreasing seems to be the thought of most of the people in the United States. And they should be skeptical, with the continued high unemployment rate of 2009, recently a 10.2% in October 2009.

Houses are as cheap as ever and there are gigantic deals for first time home buyers and tax credits deals. Yet, you may be next on the unemployment list and after that comes your house on foreclosure. This is why percentages like personal investment needed to drive the economy up are slow to develop. Many people are holding onto their money since finding a job is so difficult and therefore, they will save their money instead of investing it on buying houses even when the house prices are considerable cheaper than before.

On the otherhand, in September 2009 the Cash for Clunkers programs stimulated automotive sales and the manufacturing economy is expanding. Also although retail sales are still slow, industrial production is increasing. Yet, are conditions really getting better and will the recession gradually decrease in the months ahead?

Experts like David Kelly who is JPMorgan Fund’s chief market strategist, Bob Doll vice chairman and global chief investment officer of equities for BlackRock, John Linehan, co director of T. Rowe Price’s U.S. equity division and portfolio manager of the T. Rowe Price Value Fund, and last but not least, Uri Landesman, head of global growth at ING Investment Management all believe the recession is ending and the recovery process is taking place. Although it may remove a while for things to be better, these experts possess that the worst is behind and that there are signs of positive outcome starting in July 2009. However, the National Bureau of Economic Research will have the actual results from its observe and findings and let the public know later on if the recession is fact over and declare the month in which it ended.

The end of Recession is only the beginning of Recovery. It may take a while before the economy will seem good. Unemployment rates will decrease but there still will be unemployment. The end of recession only means that the worst is over and the economy is slowing recovering and recuperating. Manufacturing and Sales have begun to make comebacks which are indicators that the economy is getting better and not getting worst.

Numbers show that the economy shrank at an annual rate of 1% in the latest quarter compared to the 6.4% in the previous quarter which means that recession or the worst is over, yet recover is only just beginning and it may take a very long time for unemployment rates to become low again.

Federal Reserve Chairman Ben Bernanke echoes the prediction for the 2010 economy: “From a technical perspective, the recession is very likely over at this point,” Bernanke told a conference at the Brookings Institution. But “it’s still going to feel like a very weak economy for some time.” In other words, even though the recession is decreasing or partly over, the economy is still very weak and recovery will be dreadfully slow. Hold on tight to get through this bad financial nightmare. The positive days are slowly creeping back.

Sources

“Expert Summit: Is the Recession Over? ” The Motley Fool”Is the Recession Over? ” Extension”Bernanke declares ‘recession is very likely over” MarketWatch Inc.