Poll. Hypothetical economic downturn. How you you... (bankrupt, debt, recession)

[Neosec]

This is a question for both bull and bears. I'm not saying it will happen (probably not), but if an economic slowdown were to happen, how would you prefer it's speed?

We know it would be unpleasant like taking off a Band-Aid (adhesive bandage or plaster). Do you pull it off slowly or quickly?

Would you prefer a very rapid and painful crash in the economy over just a couple months and there by more quickly getting on with recovery. Or, a slower more controlled and less painful decline drawn out over many years, say six or more, delaying recovery but far less unpleasant?

Or somewhere inbetween, say, two years to hit bottom.

[texdav]

I say if like 2008; we know. But if like the great depression; not too sure.

[Mahrie]

It doesn't matter; it wouldn't change my reality either way. I'd want what was best for the masses.


Mahrie.

[FrankMiller]

I think a lot of people would prefer the V-shaped recession and recovery of the 80's. But that happened because it was a deliberate monetarily-induced recession that was recoverable through more monetary adjustment. That would be impossible in the current economy, as well as completely unnecessary. But in broad hypothetical terms, I think that a V would be preferable.

[Garthur]

What is your description of an economic downturn?

[Neosec]

Originally Posted by Garthur

What is your description of an economic downturn?

Since this is hypothetical, let's say it's severe, Dow 8,000ish. There's support there in the charts.

This time around there wouldn't be (hardly) any bailouts, instead there would be bankruptcies to clear the bad debt.

[Electrician4you]

I would prefer a fast fall and get back up. No matter what there will be opportunities. People who were on the sidelines will jump in the fray. Someone will always take a risk.

[Neosec]

Originally Posted by texdav

I say if like 2008; we know. But if like the great depression; not too sure.

More like great depression.

It is a tough call.

[turkey-head]

Doesn't matter in the slightest what I *want* the economy to do.

What matters is how I prepare for it and/or deal with it.

[hensleya1]

We'd rather have a V-shaped recession if we absolutely had one.

What's worse, however, is having a sharp and severe fall followed by a painfully slow recovery. That's what we've contended with since 2008.