How recession started?

Answer 1

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

dtgabhane@rediffmail.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"

Answer 2

This global recession began during the end of the year 2007. That was when the housing prices in the USA started to peak out. Because of over supply of property housing prices started to fall. This triggered a series of complex events which caused the economic crisis.

Answer 3

December 2007dont cheat iskra

Answer 4

Officially Friday 23rd January 2009 but recession was felt a little before that.