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Ask Paula: Is a Crash Coming?
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Recency Bias, or the Available Huristic, or Salience Biaces
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A recession is defined as two consecutive quarters of negative economic growth. By definition, we can only know if we are in a recession in hind sight. It's critical to not fall prey to recency bias or the availability huristic, or salience bias. But for all the reasons i just outlined, the characteristics of this next recession are going to be very different.
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