Talk:Early 1990s recession

From Wikipedia, the free encyclopedia
Jump to: navigation, search
WikiProject Economics (Rated Start-class, Mid-importance)
WikiProject icon This article is within the scope of WikiProject Economics, a collaborative effort to improve the coverage of Economics on Wikipedia. If you would like to participate, please visit the project page, where you can join the discussion and see a list of open tasks.
Start-Class article Start  This article has been rated as Start-Class on the project's quality scale.
 Mid  This article has been rated as Mid-importance on the project's importance scale.
 

Dropped this paragraph:

The recession was triggered by the collapse of American Savings and Loan corporations. The massive financial companies had been losing money for many years and were thus allowed by the Reagan administration to move into more profitable, but also more high risk ventures. At the same time staff and funding for the SEC and other monitoring organization was cut dramatically.

For the following reasons:
-Most S&L's were not corporations. They were unincorporated associations owned by either their depositors or a bank holding company.
-The S&L's were making money until the 1986 tax reform act changed the write-down rules for investments, particularly "passive" real estate ventures, which made the forms of these ventures no longer profitable and caused them to default on their loans.
-Deregulation began under the Carter administration: in 1980 the deposit insurance limits were raised by 150%.
-The SEC has nothing whatsoever to do with "monitoring" the banking industry: that was done by the F.S.L.I.C. for federally insured institutions, and by state authorities for state-charterered institutions. Ellsworth 21:52, 11 May 2005 (UTC)

Rewrote this sentence:

However the lumbering savings and loans were beginning to collapse, a number of them having to declare bankruptcy, putting the savings and pensions of millions of Americans in jeopardy.

-S&L's, like other deposit institutions, cannot declare bankruptcy. Insolvent banking entities are liquidated by federal and/or state regulators.
-S&L's had very little impact on pension fund assets, most of which were invested in stock and real estate.
Ellsworth 15:32, 3 Jun 2005 (UTC)

Rewrote this sentence:

[the recession] began in the United States and spread around the world.

There was no recession in the US 1987. GDP continued to grow until the third quarter of 1990. Ellsworth 23:29, 17 Jun 2005 (UTC)

I agree with Ellsworth. This whole article is misleading. The stock market crashed in 1987. However, it did not trigger a US recession (see definition of recession: at least two quarters of economic contraction). The recession started in 1990. It was the "early 1990s recession", not the "late 1980s recession." Cbmccarthy (talk) 19:15, 21 January 2008 (UTC)

Cleanup Why bother?[edit]

Deleted this from the first paragraph: . . . where recession did not hit until 1990), and another in 1990–1991. By measures such as unemployment and public perception, the North American economy was in recession continuously for years after 1987, with only brief periods of revival. Reason: 1986-89 real GDP growth never fell below +2.5% year-on-year, and averaged +3.6%. DOR (HK) (talk) 08:52, 12 June 2008 (UTC)


This article is so full of inaccuracies that it is a prime candidate for deletion. DOR (HK) (talk) 08:55, 12 June 2008 (UTC)


I have to agree about this article being a candidate for deletion. It starts with a specific, highly controversial point of view where a US-based stock panic four years before the March 1991 recession is listed as the most prominent cause of that recession. Uncited facts, irrelevant political views, and fanciful interpretations are littered throughout a short, unorganized article. I was just looking for the dates of the US recession, and I found this mess instead. The article has original research, does not have a neutral point of view, and offers virtually no citations. For what it's worth, here is one cite that this should have had: http://www.nber.org/March91.html ~Anonymous user (too lazy to create an id right now)). 19:10, 29 July 2008 (UTC) —Preceding unsigned comment added by 38.99.14.218 (talk)

Rename[edit]

Most (all?) major recessions that affected the US and other countries have their own pages. The only problem is that few economists think this recession started in the 1980s. The only mention of the 1980s in the article is the crash of 1987. Most economists link the 1990-91 US recession to the S&L crisis, aggravated by a fall in confidence and rise in oil prices at the time of the first Gulf War. The article should be renamed Early 1990s recession, like the pages on the Early 1980s recession and the Early 2000s recession.

Seems to have been renamed. (not clear what the previous name was) Rod57 (talk) 13:59, 8 July 2009 (UTC)
See also List of recessions in the United States Rod57 (talk) 14:05, 8 July 2009 (UTC)

Certain US states & regions hit harder[edit]

The decline-recession-recovery period of 1988-92 was considerably "mild" to most economic analysists. But for those living in the Midwestern United States and Gulf Coast regions, the early 90's recession was more of a "miniature" depression. California was said to been in a "reflex" 4 or 5 year recession until 1995, the state economic profile was less stable than the rest of the country back then. The early 1990's was not a good time for Blue-collar workers and low-income persons foresaw a further drop in income, employment opportunity and a wider socioeconomic class gap. One of the factors for the presidential election of Bill Clinton in 1992 was his promise to repair the US economy, in which he through his administration's economic stimulus policies did restored normal prosperity and positive economic growth returned to become monthly from Jan. 1993 to March 2001. Unfortunately, less developed and rural sections of the Midwest and Southwestern United States remained in an economic dysentry. + —Preceding unsigned comment added by 71.102.2.206 (talk) 12:02, 10 April 2009 (UTC)

Is the year the recession ended important?[edit]

I can't see a definitive date of when it ended 86.162.212.101 (talk) 16:10, 5 May 2009 (UTC)Phthinosuchusisanancestor

Economy or stock market[edit]

Since this article is about an economic recession rather than a stock market bear market/crash surely a GDP and/or employment graph would be more appropriate than a stock market index graph. Rod57 (talk) 13:56, 8 July 2009 (UTC)

Article needs serious work[edit]

As it currently stands, this article needs major cleanup and reorganization. Right now it is basically a wall of rambling text, with no headings, inadequate citations, and nonsensical information (for example, Black Monday occurred 3 full years before this recession affected the US). I tried to organize the page initially, but apparently some editor does not agree that the "Early 90s recession" affected the world in the early 90s.--FrankieG123 (talk) 23:55, 25 February 2011 (UTC)

Sorry, please try again. My issue was that it seemed reading the first para that it was trying to be remodeled in to a US-centric early 90s recession page. It was a late 80s/early 90s recession that was anything but US-centric. Timeshift (talk) 00:11, 26 February 2011 (UTC)
Well, as the article stands it is not easy to decipher what was going on. It is called the early 90s recession, yet apparently it started in some places in the late 80s? (I could not find a citation for this). I realize that the lede was poorly worded, but that was not my intention. It still needs to be established when exactly this recession began, the best I could identify as the trigger was the 1990 oil price shock, which put the US into recession, with close trade partners taking the plunge soon after.--FrankieG123 (talk) 00:47, 26 February 2011 (UTC)
Black Monday in 1987 was the trigger and caused the knock-on affect of setting up the economic scenarios and outcomes. An actual full blown recession can begin at a certain date but a recession doesn't just technically begin and end rigidly. The recession encompases the late 80s and early 90s. Timeshift (talk) 01:06, 26 February 2011 (UTC)