Washington Post (Nov 26, 2007): "Widespread expectations of a recession could be self-fulfilling because of how financial markets and mainstream America are interconnected. If investors are sufficiently convinced a recession is ahead, they would be reluctant to lend money to businesses that want to expand, making it so."
Here are the expectations:
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7UWHCLTVVmOa8NNO1TrG8oSZmchfy2f6uHvcWONiaJLQBH2wJZ83iueIhuoTjtbkSDakwEkeqTwqx-GH_C6G3IQNGuXYJjMOEHBcI28Cyzlepib2dyUXiQvrUZWrCDY1cyM72/s400/recession_trends.png)
Google Trends: term "recession" in searches and news (U.S).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjD3BwJltC2T6mk6Vse8ioEZDVWn7His58hvSwq1xgFGyxTkuLKkudRLVZ9mQEZhQPQhQCEYkybc74ME3YTLgqPYt9n7cXnOUZFQPEUMmgGEWxnUZ3oWl0VmaVg4mPwk8WrvcD2/s400/recession_blogpulse.png)
Blogpulse: term "recession" in consumer-generated media (blogs, newsgroups)
NY Times (Dec 4, 2007): "Growth in advertising spending in the United States is slowing considerably, according to several forecasters whose predictions are closely followed. But they believe the continuing strength of ad spending online — as well as the stimulative effects of the elections and the Summer Olympics — should keep the industry from suffering a recession in 2008."
Telegraph (Dec 15, 2007): "Morgan Stanley has issued a full recession alert for the US economy, warning of a sharp slowdown in business investment and a "perfect storm" for consumers as the housing slump spreads."
Time to dust off the trusty chart showing how advertising during recession is good for business in the long run:
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjrru0lu-ncLWqn9blEc0eay31StDXA316ndUFugD0bZTuPRq-eThinc3O45W0Zfr9uP9dJSI-j0WLjL03d4hlta7SNGyplZO6OPNC8BagHNHKh9sZIzUURxmrfvePTTaJBwi23/s400/recession-advertising.jpg)
The results of a McGraw-Hill research that showed companies advertising during the 1981-82 recession averaged higher sales growth (source).
The Economist seems to advocate some really dramatic figure on recession and how companies must look at their investment. Happy reading...
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