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This recession was first caused by banks lending money to people that weren't very likely to re-pay the money. This caused the trust in banks (by people, governemtns and other banks) to fall and now they won't lend money to each other. In a little more depth, the sub-prime mortgage market, a lack of risk-aversion and a lack of regulation caused bank's equity values to fall very rapidly and as a result the bank's are very wary about who they lend to in case they lose a lot of money and become insolvent. This causes a contraction in the money supply and this is prolonging the recession.
What else can I help you with?
Are you in a depression or recession?
The world is in a big recession.
Is overproduction a cause of the recession?
It was a cause of the depression, and probable the recession but I'm not sure
What is the great recession?
Recession means: When the state of the economy declines; a widespread decline in the GDP and employment and trade lasting from six months to a year It's actually a fall in GDP for 2 or more quarters....
What is economic crunch?
recession
What are the factors affecting recession?
Factors that affect recession are complex and vary between each incident. What most recessions seem to have in common is an over speculation in stocks, real estate, commodities or some combination precedes the recession. They are usually marked by a loss in confidence by the public which can affect the length/depth of the recession.
Are you in a depression or recession?
The world is in a big recession.
What is the adjective of recession?
The adjective of recession is recessionary.
Recession is spreading like virus examine the impact of recession on stock market and mutual fund?
recession
What are Advantages and disadvantages of recession?
advantages and disadvantages of recession
What is global recession?
Global recession is a period of economic slowdown. The Great Depression and Great Recession are two periods in time that experienced global recession.
Which statement is trueA recession is shorter than a depression.A recession occurs when the federal budget is balanced.A recession is closely related to a presidential veto of an act of Congress.A recession is longer than a depression?
A recession is shorter than a depression.
How does poverty tie in with recession?
recession causes an increase in poverty
When was The Recession created?
The Recession was created on 2008-09-02.
When was Love Has No Recession created?
Love Has No Recession was created in 2009.
Are you heading for a recession in the United Kingdom?
The UK is already in a recession.
When economic activity in an economy declines it is called?
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What is a period of temporary business reduction shorter and less extreme than a depression?
This is often called a recession.
