Other "great depressions"
What is another name for an economic downturn?
Great Depression
Loss given default Berbești Raila Odinga Andrew Romanoff SuperYacht Business
Loss_given_default-Downturn_LGD Berbești-Economy Raila_Odinga-Economics Andrew_Romanoff-Economy SuperYacht_Business-History
Under Basel II, banks and other financial institutions are recommended to calculate 'Downturn LGD' (Downturn Loss Given Default), which reflects the losses occurring during a 'Downturn' in a business cycle for regulatory purposes. Downturn LGD is interpreted in many ways, and most financial institutions that are applying for IRB approval under BIS II often have differing definitions of what Downturn conditions are. One definition is at least two consecutive quarters of negative growth in real GDP. Often, negative growth is also accompanied by a negative output gap in an economy (where potential production exceeds actual demand). The calculation of LGD (or Downturn LGD) poses significant challenges to modelers and practitioners. Final resolutions of defaults can take many years and final losses, and hence final LGD, cannot be calculated until all of this information is ripe. Furthermore, practitioners are of want of data since BIS II implementation is rather new and financial institutions may have only just started collecting the information necessary for calculating the individual elements that LGD is composed of: EAD, direct and indirect Losses, security values and potential, expected future recoveries. Another challenge, and maybe the most significant, is the fact that the default definitions between institutions vary. This often results in a so-called differing cure-rates or percentage of defaults without losses. Calculation of LGD (average) is often composed of defaults with losses and defaults without. Naturally, when more defaults without losses are added to a sample pool of observations LGD becomes lower. This is often the case when default definitions become more 'sensitive' to credit deterioration or 'early' signs of defaults. When institutions use different definitions, LGD parameters therefore become non-comparable. Many institutions are scrambling to produce estimates of Downturn LGD, but often resort to 'mapping' since Downturn data is often lacking. Mapping is the process of guesstimating losses under a downturn by taking existing LGD and adding a supplement or buffer, which is supposed to represent a potential increase in LGD when Downturn occurs. LGD often decreases for some segments during Downturn since there is a relatively larger increase of defaults that result in higher cure-rates, often the result of temporary credit deterioration that disappears after the Downturn Period is over. Furthermore, LGD values decrease for defaulting financial institutions under economic Downturns because governments and central banks often rescue these institutions in order to maintain financial stability. 
The main economic activity is coal mining that began in the 1970s. Following the economic reforms in the late 1990s, Berbeşti saw an economic downturn similar to most of the mono-industrial towns in Romania. 
Political positions. Due to an economic downturn and extreme drought, Odinga called for the suspension of taxes on fuels and certain foods that disproportionately impact the poor. 
Romanoff is credited as a main author and advocate for Referendum C, a major financial overhaul to the state of Colorado. It partially disabled the safety mechanism intended by the Taxpayer Bill of Rights, that tried to prevent the over spending that nearly bankrupted the state after an economic downturn. 
In an interview with the "Guardian" newspaper in 2002 IPC Media's chief executive, Sly Bailey, blamed the economic downturn for a fall in sales in their portfolio of magazines with a focus on luxury brands, such as super yachts.  