Recession on the Way, Impact Unclear

What will a recession mean to you?

It’s been a while since the U.S. experienced a recession. In 2001, there was a mild recession, according to economists, as the Internet economy imploded. The last five, six years have been good, unemployment has been at historically low levels, and our industry has certainly benefited as consumers took on more debt.

There is, was, a maxim that collections did better in recessions, as more consumers went into debt. Others would say it’s not that simple, when the economy sours, everyone feels it.

Another truism is that the economy usually does better in an election year as politicians do everything they can to ensure the voters feel good. That way you vote for the incumbent, or better yet, skip voting entirely.

Next year is shaping up as the year for turning everything on its head. The clichés won’t apply anymore and we’ll be treading new ground.

What does seem clear is that it may be tougher to do deals as banks pull back from lending and credit gets tighter. Does that mean debt paper gets more expensive? Or will there be such a flood of paper that prices will drop?