What are the chances of the economy falling into recession?

If you listen to the mainstream media talking about the economy, the 'R' word is back in play.

Oil prices have fallen. Wall Street has slumped. You're starting to hear about a recession, especially from the mainstream media. But Lone Star College economist Hank Lewis says you should be using the 'C' word instead.

"With contraction the economy falls down, but you're not falling behind expected growth. Recession is below where you are supposed to be based on the trend," Lewis explained.

And you're also hearing comparisons to 2008 and the financial crisis back then. Lewis says those are off base.

"We now have stronger regulation on banks, who can't lend to people with bad credit anymore," Lewis said, adding that people have more to fall back on, so if the bottom does drop out, we are in better shape now than we were then.


Sponsored Content

Sponsored Content