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user-inactivated  ·  2646 days ago  ·  link  ·    ·  parent  ·  post: Banks Raise Red Flags on US Economy

What I've never been able to figure out, since the last recession, was when someone pointed out that growth numbers stack(1) and it's unrealistic to expect economies to just keep expanding and expanding without sliding back from time to time. You figure people would put into their financial models (whether they're investing or whatever) plans for what to do when the economy inevitably slides back. You know, to reduce hits to stock values, reduce layoffs, whatever.

(1) At least, I think that's how I understand. For example, 5% of 100 is 105 and if that grows by 5%, then you get 110.25 and that .25 is the result of stacking.