We're in a Recession - 3 Rock-Solid Reasons Not To Worry - By: Scott Swenson

The news is saturated with stories about our economy's trouble, often calling it a recession. What exactly is a recession? This is a tougher question to answer than most people realize. Many top economists disagree about the precise definition of a recession. In general terms, a recession is a slowing of economic growth characterized by a decrease in production, spending and borrowing and an increase in unemployment. Nearly all major economies, including the U.S. and Japan, have confirmed that they are experiencing an economic downturn or recession and this overwhelmingly viewed as a very bad thing. This article will give you 3 reasons why a recession should not be viewed negatively.

Reason 1 -- A recession is just a phase in the economic cycle The economy goes through cycles just the way our physical world does in terms of day/night, lunar cycles, and seasons. The 3 phases of the cycle are: Expansion, Peak, and Contraction. While the government tries to control the cycles somewhat, market contraction is a natural result of hitting the peak of expansion. It is something that has to happen to control growth. Economic contraction isn't permanent. Guess what the next phase of the cycle is after contraction? You guessed it, expansion! Don't wait for expansion though. Work on building your cash flow now!

Reason 2 -- A recession slows inflation For some reason, people think that we should always be in a phase of unlimited expansion or growth. However, this is neither possible nor desirable. Unlimited growth can cause the increase of prices, otherwise known as inflation and is as dangerous as a serious economic slowdown. Take advantage of this climate by finding investment bargains and snapping them up!

Reason 3 -- A recession indicates opportunity Most people would agree that a recession presents many problems for most people. The thing to remember is every problem needs a resolution and that resolution is an opportunity. I've found that the greater the problem, the greater the opportunity. In fact, it has been said that the value one brings to the marketplace is based on the problems they can solve for the public. What problems do you see? How can you help people solve these problems? Learn how to do this, and you will never worry about the economy again. It has become consensus that the world's economy is in a contraction phase, but that doesn't mean that you can't prosper. By understanding that problems represent opportunities, you can be very successful in this economic climate. All you need to do is marshal your resources to find the problems that people have, and offer a solution! Work on your cash flow and you will be more than fine!

About the Author

Scott Swenson is a financial trainer who has taught thousands how to build personal wealth. Want to learn more about how to build wealth fast? Claim Scott's popular free ecourse, available at: => http://www.TheWealthQuadrants.com

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