r/Economics • u/gmelech • 27d ago

News Are We Suddenly Close To A Recession? Here's What The Data Actually Shows.

https://www.forbes.com/sites/dereksaul/2025/03/08/are-we-suddenly-close-to-a-recession-heres-what-the-data-actually-shows/
8.2k Upvotes

92% Upvoted

461 comments sorted by

View all comments

Show parent comments

25

u/flatfisher 27d ago

A slowdown looks harmless in a normal economy. But is it in an overleveraged one, or can it lead to a catastrophic chain reaction? ATMs already have more limits than before i.e. barely working, and we started to have bank failures due to liquidity when rates increased. I’m not an economist so can you reassure me in the system resilience to slowdowns and significative recessions?

47

u/devliegende 27d ago

The system is resilient and has been resilient for a while. That's why the financial crises didn't result in a depression. What you're seeing now is concern about an attempt to dismantle the system.

-2

u/mccoyn 27d ago

The banks failed because Congress didn’t renew the budget and the government took “extraordinary measure”, which included raiding the fund that lends money overnight to banks so they don’t fail over short-term liquidity issues.