Dear PS – This one’s on your request.

Frankly, I don’t understand what a ‘Recession’ is. But off late, I have been hearing a lot about it. It’s like the most happening thing around. From my college going cousins to my friends in investment banking, everybody is talking about it. The ‘Recession’, they say is back and everybody seems to be worried about it. And yet I don’t know what it actually means. I had heard about the recession back in 2001 too. Even then it had become extremely popular. Everybody used to talk about it. While some said it was just a ‘slowdown’, most argued that it was definitely a ‘recession’, while some even branded it as a ‘depression’. But I never figured out what they actually meant by those terms. Eventually people got bored talking about it and so the recession went away. And now it has resurfaced.

Different people have different views on the recession. Some say that it’s just a momentary thing that would end in a few months, while some confidently say that it would last for at least for a couple of years. A real estate agent I met last week was more than 100% sure that this was the best time to buy real estate. His reason: The recession would end in two months and property prices would shoot up again. Whereas a distant relative of mine, who has now doubled as an insurance agent, claimed that the recession would last for at least two more years and hence an ‘insurance plan’ was the best thing to invest my money in. (Just on a side note –distant family members and friends suddenly turning into ‘Insurance agents’ and coaxing you to buy insurance policies, can give you some of the most awkward moments in life ! ). But whatever the claim people make about the recession, I am sure, they are all baseless and just biased to promote some personal interest.

But the most interesting view I have heard about the recession is from this friend of mine who believes that it is the Chinese who are causing it. Last week, over coffee, he had the opportunity to enlighten me with his theory. He said and I quote “Once the recession kicks in, people will start losing money. Once people start losing money, they would no longer be able to afford expensive stuff. So they will have to buy the cheap goods. And who makes cheap goods?” With raised eyebrows and the excitement to prove his conspiracy theory on the ‘Recession’, waiting for me to answer his question seemed like a long wait. So before I could say anything, he with all enthusiasm, continued “Of course the Chinese do. The Chinese make cheap goods and they are the ones behind all this. It’s their big master plan to emerge as superpowers.” For a moment I was kind of awestruck by this explanation. I had not heard of anything bizarre like this for a long time, but my friend was pretty serious about his theory. I was about to break into a fit of laughter but I somehow gathered myself and asked “What exactly are the Chinese doing?” “Causing a recession”, was his reply. “But what exactly is a recession?” I asked. My friend took offence to that question. I knew I shouldn’t have smiled while asking him that. He felt I was mocking his intelligence and his theory, and refused to discuss anything about the recession with me. And so I missed by chance of understanding what a ‘recession’ is.

But whatever the ‘recession’ is I don’t see much of it anyways. Last week I was at a mall and it was as crowded as always. There were people standing on the very next step behind me on the escalator. (Wonder why people get so close while standing in queues, elevators and on escalators?) Unfortunately I couldn’t move a step up as then that would make me just a step away from the crowd in front of me, and I don’t enjoy getting into such close proximity of strangers. Anyways, people were shopping, spending, and having a gala time. I didn’t see any recession there. Then just a couple of days ago, a friend of mine, who is supposed to graduate with an MBA from the USA in a few months, was all excited about bagging a job offer. I am sure ‘getting a job in a recession’ is definitely reason to cheer about. I am happy for him, and also happy that fuel prices are down. I can now afford to get stuck in traffic for a little longer than usual.

Well whatever the ‘Recession’ is, I am sure it’s not something to be worried or depressed about. Like last time, even this time it will go away and fuel prices, stock prices, property prices, and salaries will rise again. Then again one day after a few years the recession will be back. Till then at least I hope that I actually understand what really a ‘Recession’ is.

PS: By definition the term ‘Recession’ generally describes the reduction of a country’s gross domestic product (GDP) for at least two quarters. – Yup, I Googled it out :)