The economy goes through different cycles. One of them is recession. It is observed when the prices start to increase and the living standard starts to fall. Another indicator of recession is a decreasing gross national product of a nation, which is observed over two quarters.

http://hikrish.blogspot.com/2008/02/what-is-recession.html

A recession may involve simultaneous declines in coincident measures of overall economic activity such as employment, investment, and corporate profits. Recessions may be associated with falling prices (deflation), or, alternatively, sharply rising prices (inflation) in a process known as stagflation. A severe or long recession is referred to as an economic depression. A devastating breakdown of an economy (essentially, a severe depression, or a hyperinflation, depending on the circumstances) is called economic collapse.

http://soilride.wordpress.com/2008/12/10/what-is-recession/

We fear recession since it could result in more than normal job cuts, financial tension and the burden of managing the needs of the family increases. With less or no employment growth the scenario looks bleak.

http://digg.com/political_opinion/What_Is_Recession_Recession_Facts_Recession_News?t=20972297

2008 will likely be known as the global economy’s worst year in decades. What began as a modest U.S. economic downturn accelerated into a full-blown credit and financial crisis that spread around the world. Aggressive intervention by governments and central banks failed to reassure reeling financial markets, ease tight credit, or stave off what is expected to be a protracted global recession.

http://www.thestudentroom.co.uk/showthread.php?t=662100

Most experts agree that it is only an “official economic recession” when GDP growth is negative for two consecutive quarters or more. However, for all practical purposes a recession starts when there are several quarters of slowing but still positive growth. Often the first quarter of negative growth in a recession cycle is followed by positive growth for several quarters, and then another quarter of negative growth.This definition is unpopular with many economists as it does not take into consideration changes in other variables such as unemployment rates or consumer confidence and spending.The official agency in charge of declaring that the economy is in a state of recession is the National Bureau of Economic Research. NBER’s definition of recession is a bit more vague, they define recession as a “significant decline in economic activity lasting more than a few months”. For this reason, the official designation of recession may not come until after we have been in one for a substantial amount of time.In some ways it is quite natural for countries to experience mild recessions. This is a built-in or endogenous factor of a society as spending and consumption are going to increase and decrease along with prices.Rarely, experiencing many of these factors simultaneously can evoke deep economic recession or depression.

http://www.abovetopsecret.com/forum/thread328527/pg1

In economics, the term recession is generally used to describe a situation in which a country’s GDP, or gross domestic product, sustains a negative growth factor for at least 2 consecutive quarters. I say generally because recession can be defined differently by different economists. Just as there is an agency to define the measure of inflation; the official agency in charge of declaring that the economy is in a state of recession is the National Bureau of Economic Research (NBER). NBER’s definition of recession is a bit more vague than the standard one that was described above; they define recession as a “significant decline in economic activity lasting more than a few months”. For this reason, the official designation of recession may not come until after we are in a recession for six months or even longer.

http://brainless.instablogs.com/entry/what-is-recession/

We all use the word ‘recession’ and we heard of it a lot these days as credit crunch and financial woes sets in. Stock markets are always in red rather than in the green. Ever-declining charts for shares are setting the investors around the world into a state of panic. Many people have been using this word, but only some actually knows what it actually means.

http://www.investorglossary.com/recession.htm

As a rule of thumb, a recession is the fall of a nation’s gross domestic product (GDP) over two or more consecutive quarters. A recession is also referred to as a period of economic decline and reduced economic activity. Factors that may cause a recession include overproduction, decreased demand, falling consumer and business confidence and major economic imbalances, among others. During a recession, the level of unemployment rises, investments decline, and prosperity lags. Real personal income and spending growth also have a tendency to slow if not decline during a recession. A recession can involve rapidly falling (deflation) or sharply rising prices (inflation). The average recession from 1945 to 2005 lasted about ten months but two went on for a record 16 months. The National Bureau of Economic Research is the official arbiter of what is and what is not a recession. A recession in one country can cause a recession to occur in others, specifically trading nations. A recession can be widespread and affect the entire economy or a recession can be industry-specific.

http://www.answerbag.com/q_view/563321

Recessions do not only affect poor people. Even (and sometimes especially) the well-off begin to get nervous when the economy takes a dive, prompting them to ensure that their investment portfolios are getting the most bang for their buck in the marketplace.[1]
Recessions not only cull unhealthy companies, they expose financial gimmickry. They punish groundless optimism and the rampant speculation it feeds – in fanciful Internet ventures in the 1990s, for example, or in housing over the past few years.[2]

Economists predict that the recession will continue through at least July 2009 (with recovery effects lasting the rest of the year or longer), making it the longest period of economic downturn since the Great Depression . During the next year, people around the world will continue to suffer the recession’s devastating impacts, and as is often the case, the ones who will suffer most are the ones who can least afford it.[3]
Economists at UBS, for instance, expect global growth of only 2.2% in 2009. [4]
Economists usually teach that to some degree recession is unavoidable, and its causes are not well understood. Consequently, modern government administrations attempt to take steps, also not agreed upon, to soften a recession.[5]

Companies that are in the beginning of the innovation journey need to accelerate capability-development efforts or will find themselves simply unprepared for the fight ahead. Industries that had already been grappling with disruptive threats for years–like newspaper companies–will face intense pain as they struggle to find a safe haven in today’s brutal economic climate.[6]
Companies will have to stay focused on their web sites, social strategies, and eCommerce this time around — or risk losing their next generation of customers. [7]

Government and trade-association data reveal a 10% increase in sales of firearms and ammunition in the months leading up to the election. Obama on his way to the White House and the nation officially in recession, we can only imagine that rifles will top many a holiday wish list.[8]
Governments, both federal and provincial, posted higher deficits because they collected less tax on income and corporate profits but spent more money on programs such as employment insurance benefits. [9]

Reference
[1] http://www.resumebear.com/blog/index.php/2008/12/29/top-50-recession-proof-industries-and-what-makes-them-recession-proof-part-1/
[2] http://www.boston.com/bostonglobe/ideas/articles/2008/03/23/the_good_recession/
[3] http://www.worldchanging.com/archives/009223.html
[4] http://www.economist.com/finance/displaystory.cfm?story_id=12381879
[5] http://en.wikipedia.org/wiki/recession
[6] http://www.psfk.com/2008/12/more-on-recession-or-reorder.html
[7] http://blogs.forrester.com/colony/2008/10/my-take-on-the.html
[8] http://adage.com/article?article_id=133241
[9] http://www.canadianeconomy.gc.ca/english/economy/recession.html