The Recession in Context: How Long Will It Last?

Lots of headlines today that the recession has not only arrived, but has been here for a year. Why You Care says let's focus on the context.

Here's why you care: You need to know two things... First, what's the length of other recessions? Second, how long will this last? Fortunately the New York Times' David Leonhardt has put together a list of the longest recessions in the last century for a little context - it is worth checking out. Second, the LA Times' Maura Reynolds has a story reporting that this recession could last into 2010.

If you take three minutes and look at both of these stories you come to realize, that even if we go half way into 2010 we're no where near the Armageddon of 1929-33. Small comfort, yes.

However, what we do know is that once Wall Street declares a bottom, that is when things will start gradually picking up. Again, small comfort. But, this data is the same information that all of Capitol Hill, K Street and Wall Street are considering and talking about today. In other words, they are looking forward, not backward. That's why given the policy debates going on right now, you should be thinking about it too.