Why the recession exists.

This is quite a controversial topic as many believe different things.

Some economists define a recession as two consecutive quarters of economic contraction, or a decline in GDP. Unfortunately, the US wasn't off to a bad start this year. According to the Bureau of Economic Analysis, real US GDP rose about 1 percent in the first quarter of 2008 and 2.8 percent in the second quarter, not bad at all.

In my opinion, we are in a recession for several reasons, both long term and shorter term. The government kept interest rates too low for the housing market, causing attraction for home buyers.

Fanny Mae then seperated banks from assuming the risks by buying up the loans which is a good example of government interference into the real estate and housing market. By allowing the banks to sell the loans, they could careless about who they gave mortgages to. Recent wages have gone down significantly with the spike and collapse of oil in the last few months resulting in a much poorer public. Poor people means less goods are purchased and then in turn slows the economy. Recession was delayed by the misuse of credit. Wages have not kept up with inflation.

See recession proof jobs to avoid job loss.

Recession proof jobs.

Let's face it, jobs are being lost daily.

Looking for a recession proof job? Select one of the many that don't suffer as bad from the list below. There are industries that the recession has little to no effect on and will provide the security you need to get your bills paid on time.

The following jobs do not have massive lay offs.

1. Fast Food & Supermarkets
   People need to eat, need I say more?
2. Entertainment & Casino
   When people get layed off, they sit at home and watch television.
3. Police Force & Security
   Security is needed to control people whether there is a recession or not.
4. Repair Shops/Places
   Stuff breaks, its inevitable.
5. Lawyers/Legal
   With many going bankrupt, many laywers are seeing progress as opposed to a down turn.
6. Internet or IT related
   The internet is a cheap source of business building. During the recession many are starting their own business for job security by not relying on an employer.
7. Education
   People are seeking new professions to focus on while jobs are limited. Expansion in knowledge means more job opportinities.
8. Babysitting
   Many individuals have to work 2 jobs to pay their bills and have no time to take care of their children plus most babysitting is done under the table and untaxed.
9. Health Care
   People will always have health issues. Nurses, Doctors, etc are always in demand.

Jobs taking it the worst:

1. New Vehicle Sales
   People are buying used and private since they have no need for a new car. Most cannot afford payments since they either lost their job or took a pay cut.
2. Oil and Gas
   To much speculation and lay offs in the energy industry. Many companies have siezed drilling to avoid profit losses. High end experienced people will most likely get a reduction in pay while smaller ones get layed off.
3. Construction
   There is less work now that people cannot afford new homes. Banks are taking hits on new developments. Many homes to choose from are already for sale or foreclosed.
4. Banks and Financial Institutions
   Many banks have lost millions in the recession and its only getting worse. Many executives are kicking themselves for being greedy and some even accused of poor management.

All in all, if you are expecting to survive the recession with one of these recession proof jobs, you aren't going to get paid much unless you are involved in the medical, legal or (high end) entertainment industry.