Recession->what it does???Global economy in jeopardy!!!
Posted by seshdotcom on March 29, 2008
Prelude : The outcome of National or Regional economics which broadly speaking doesn’t favour the civvy is called a Recession.I don’t want to go deep into the different countries that were inflicted with recession instead lets see what recession does to an country’s economy.By the research done by National Bureau of Economic Research it can be redacted in this way->”A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales”here GDP stands for Gross Domestic Product which is an Standard for Measuring economy which takes into consideration different factors like Capital,Market values etc in a Period of 1 Year.
What recession does???
Recession makes either Inflation or Deflation of Market prices which when goes by the way of a civilian a fall in price is always a one which should be welcomed but see from the angle of original possessor it would be hard to digest..Isn’t guys???.Similarly deflation in one way or other it affects either the producer/dealer or the consumer.
Since the business cycle is very hard to predict you cannot say when an recession is going to happen we all know the world economy teeters between bad and worse so its pretty hard to handle recession
Recession in USA:
Everyone knew that the companies which have U.S as thier Migdol Stronghold is suffering due to sudden slump in Dollar’s Price vs Rupias,Yens,the dinars etc..So what happens to Global economy by any chance Global economy in jeopardy->America is harbored from a deep recessionary Gutter by its magnificent diversity, a worldwide slowdown could increase the possibility of a Global Avalanche, propelled by the U.S. consumer sector and considerably this lowers the demand from world’s manufacturing Giants the reason for this is the consumers in U.S have considerably reduced thier demand of products from other country.
America has only (5/100) of Population out of that in the Universe but about 1/4 of the resources is consumed by the population in U.S.Another important reason say some 14% reason for recession is people who were unable to repay the debt they have with the Banks who would have Pledged thier house as thier Surety and it would have lost its Value when it was during the time of quotation and unable to repay the debt some part of what h/she has borrowed would be paid by bank->Loss of resources.
Whatever i know i have written Please Obliterate/Neglect the Mistakes i ahve commited
DO YOU THINK RECESSION REALLY HAS MADE AN MAJOR IMPACT IN Indian economy if so in what areas????