Ever wonder why economists can't predict recessions? Maybe it's because they're optimists. When times are good, it's human nature to believe the prosperity train will just keep on rolling. But unfortunately, recessions happen, whether or not we see them coming. And the best time to prepare is always right now.
The last recession, known as the Great Recession, started in the U.S. in December of 2007 and lasted until June of 2009. During that time, the subprime mortgage industry collapsed, housing prices crashed, U.S. real gross domestic product declined by 4.3%, and unemployment shot up from 5% to 9.5%. American households lost roughly $16 trillion in wealth, thanks to job loss, housing value declines, and a 57% drop in U.S. stock prices.
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Source Fool.com