what is a recession
| Fears of a coming recession erupting
in the US economy have fuelled bullish investors worldwide to hold
on to their reins and safe equities. The gut feeling now is that the
shadow of the Great Depression of the 1930s and the Japanese
recession are haunting the economic policies once again. Within US,
citizens are scanning information to stay calm even if the recession
affects them financially. Elsewhere in the world, bourses are
experiencing the ripple effect as major trading markets are on the
run. Recession is defined as a slump in economy of the country for a minimum two quarters of the year. If this has been happening for two or more years, the country has been hit by a recession. The writing was on the wall for long, but the economic slide was being ignored. The recession will take time to sink in for the new generations have not experienced the Great Depression when jobs were lost and older generation was sadly remembering ‘How Green Was My Valley’. Economists can talk about the great depression as it was recorded in history. As history repeats itself, will the new generation be more careful? No one was aware of the coming recession that would affect rest of the world. Financial institutions are besieged with worried investors. Consultants are trying to clam down companies who have great risks at the stock exchanges. Panic buttons have been pressed and there are efforts to stop recession in its tracks. Forecasts are still showing that more losses will be felt in the coming weeks. In a country, which lives and thrives on credit bills and mortgage loans for just about everything, there is cause to get worried. Defaults will hit the consumers and companies equally. The stock exchanges have always been indicative of the recession. The individual investors are still safe. But will the professionals be able to have recession proof stocks? Will some companies remain unaffected by the Dow Jones industrial slide? Americans already started to feel the heat when jobs were being outsourced to cheaper countries. The US economy is hurtling towards a recession. It has not yet turned into a depression. But the signs are looming large. Every business is slowing down. Expatriates are leaving for native countries. In 2007, many businesses felt the heat and closed shop. Is a 2008 recession, imminent that could change equations once again? The dark forces of attrition, retentions are spreading tentacles to US companies worldwide. ~ By N. Nagpal, economist and category author. 2008.
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| Related
resources by the same author : what is a recession -
definition of recession
- Effects of Recession -
US economy 2007 recession -
housing slowdown in USA
- US recession 2008 and can it affect India - surviving recession |
