Olympia Real Estate Blog

In our economy, we evaluate the business cycle in terms of phases:  Contraction, Trough, Expansion, and Peak.  In spite of efforts, even economic masterminds cannot predict when the next phase will come.  It can even be difficult to tell which phase we are currently in.  The contraction is determined by economic slowing, measured in terms of indicators such as Gross Domestic Product.  It is clear that we crossed this threshold some time ago.  The trough is the phase that contains what we call "The Bottom", which is what we have been hoping and praying for.  The trough is a springboard for the expansion phase, where the economic pace speeds up and the country is prospering.  The peak contains the point at which the economy begins the next contraction.

So, where are we?  Many would say that we are falling further into the trough, based on reports of increasing unemployment foreclosure rates.  These are no doubt dire times for our country, but the bigger picture may be a bit brighter.