What would you like to do?
It has started since Dec. 2007. Referring to this piece of article on CNN Money quoting study by nonprofit NBER. http://money.cnn.com/2008/12/01/news/economy/recessi…on/index.htm
Find a business that meets the need of the market to save money, feel better or retain their social standing. Large makeup companies were started in the depression, so busines…ses that are beauty based will thrive in a recession. Credit counseling, credit repair and temp agencies thrive during budget cutting times. The fundamental rules for starting any business still applies during a recession. The challenge is always the same: meet a market need, which is often impacted ans shaped by a recessionary economy.
The recession started when the bottom dropped out of credit. Some idiots came up with the idea of adjustable rate mortgages. The idea was that if people moved into a house wit…h low payments then they would suddenly be able to make high payments. It did not happen. The people that lent the money for the poor people to move in the houses lost their money. The houses the people lived in became empty. A lot of people lost money. The salesmen who sold people on the idea made money. The bankers got rich from selling worthless junk. The politicians who changed the law did not suffer. Teddy Kennedy died and did not live to see the recession he helped cause. Still, the amount of money that people borrow in normal times is not there.
According to the NBER: Dec. 2007
Well about 8 years ago now banks starting giving out special loans (mainly for homes) that they knew the people would not be able to afford after the first 7 years when initia…l rates were low. 7 years later, people couldn't pay the banks, so banks stopped lending. less money was flowing which in a nutshell meant our economy slowed down. there's plenty of other factors and I AM NOT AN ECONOMIST so theres plently of people who can explaimn it better but from waht i understand that's basically it.
The current recession, also known as the Great Recession of 2007, began in late 2007-early 2008 and was the result of the burst of the housing bubble. A bubble means the infla…tion of value of goods or services; the burst of the bubble meant prices collapsed suddenly. The main cause of the recession was the over-investment and spreading of risk through sub-prime mortgages. These mortgages were dangerous, raised prices, and their inherent risk was combined into subsequent derivatives which were difficult to government and credit agencies to rate. Some other causes include banking malpractice, government regulation, and moral hazard. Revised in more of a "kiddy" way: Back in 2007, the banks were giving out loans left and right, but were careless to compare the price of the house mortgage to the person's salary and income. These people obviously couldn't afford to pay the monthly mortgage, and since they never put any money into the house, they just ditch their home. Now, imagine like over 1,000 people doing this. The bank becomes corrupted, and it creates chaos we have today. So, you could say our current recession could be blamed on the bank being carefree.
The recession started because the government gave incentives to banks to issue high risk loans for Americans to buy houses. The people who bought these houses could not pay ba…ck their loans, and their houses foreclosed. This left the banks holding empty debt they would never receive.
There is strong answer to the question that How recession is started?. Ans:When the financial and credit system breaks the natural process then recession happens. What really… recession means? some economists are saying recession happens due to slow down in economy others are saying recession is due to mortgage loans or over spending. I particularly believe in the fact that before start of recession in Dec 2007 in US every thing was going normal but the question is how recession comes from?.The GDP numbers were also great. Recession comes from the developed economics of world like US and U.K. where the people believe in mortguage loans, credit payments & excessive expense on living. Moreover economy of developing countries are much more depend on develop economics and the impact of recession was clearly seen in developing economics also like Asian countries. So following steps required to be taken by the developing economics to avoid recession : maintain aggreate demand of goods and services, don't be depend on other countries for import & export, disallow FDI's they will take part of our profit, For some instance FDI's will give jobs but in recession many professionals lost their jobs due to concentration of MNC's in India, make strong our own infrstructure for agriculture, industry & services, give priority to savings which would help in recession, rather to go for job try to become enterprenuer, good fiscal policy of country. Countries like India & China will likely face recession because of own their domestic cunsumption (Large population). I pray to god that we will never see recession in future. Thanks & Regards Dinesh email@example.com Greed and indulgence. You see, as long as money is made by selling goods and/or services, it is good. The trends of making money out of money can never really sustain for a longer period. Everything in the system needs correction, once the system is off so the equilibrium and that's the law. You keep buying, I keep buying and our neighbour keeps buying eyeing profits, what will happen? The profits start reducing (because of distribution of profits among all stake holders) and after a little while of reduction (which is a gag before the strike), the bulls dies and the bear hugs you. See petrol for example. Just because we have petrol available in abundance, we keep using our vehicle. As the petrol reserve keeps diminishing, the prices keep going upwards and lesser number of people can afford petrol. The situation continues worsening and at a point, there's no more petrol for anybody's use. Petrol and Money, the key difference being petrol is consumed for personal convenience in commuting and money is spent to make more money to eventually buy pleasures otherwise unaffordable. "by Paneer"
First of all we have to think why this current economy crisis raised. simple answer will be this: because of having more consumer than production. Now main question is coming …why it is happening? because people are not understanding what really means job and develop. people thought that job is someone who sit on the table and work without getting dust on your hand. and people thought that rising numbers of such a people in country are developed. so, most of the people around the world caught on this unrealistic appearance. they never considered that doing a farming in the field are best job and they never considered its develop country where all the people are engage in farming. if 50% of people consider that agriculture is important and work on it, there wont be any starving situation around the world. and its full proof of recession.
recess choclate was started in 1928 by miltan hershey
start a company that sells "out of business" signs
The date at which a recession starts is called a peak.
Officially Friday 23rd January 2009 but recession was felt a little before that.
The Great Recession theoretically began during the middle of 2007, when house prices began to decline. As a result, banks that had massive exposure to sub-prime mortgages who …expected housing prices to appreciate lost massive amounts of money. The stock market started realizing that something was wrong at the end of 2007.