WORLD ECONOMIC RECESSION

Issue 1
Issue 1
A warm welcome to you

To help you get a glimpse of the current

economic crisis throughout the world
 Definition of Recession & Depression
 History of Recessions
Objective  Causes of Recession
 It’s Impact
 Steps taken by the Governments
 The awaiting future: Bright or Dark

Please read on…

Definition of Economic Recession
and Depression
Definition of Economic Recession and Depression:

What is Economic Recession?

 “A decline in the Gross Domestic Economic Depression

Product (GDP) for two or more
consecutive quarters.”- Newspaper Definition.
 “Periods when global growth is less
than
3%” – IMF Definition.
“The time when business activity has
reached its peak and starts to fall until
the time when business activity bottom
out.” – The Business Cycle Dating Committee.
 Before the Great Depression
of
the 1930s any downturn in
economic activity was referred
to as a Depression.
 A Depression is a recession
that lasts longer and has a
larger decline in business
activity.

 “Significant decline in economic activity

lasting more than a few months” –
National Bureau of Economic Research
(NBER).
Difference Between Recession & Depression:

There is an old joke among Economists that states:

“A Recession is when your neighbor losses his job.
A Depression is when you lose your Job”

So, how can we tell the difference between a Recession and

a Depression?
 To look at the changes in GNP (a good rule of thumb);
 A depression is any economic downturn where real GDP
declines by more than 10 percent. A recession is an economic
downturn that is less severe.
 Depression lasts longer than Recession.

Can you tell now the difference?....................

History of Economic Recession
 List of Recessions in World History:

Panic of 1797 Depression of 1807 Panic of 1797

Panic of 1797 Depression of 1807 Panic of 1797
(1797-1800) (1807-1814) (1797-1800)
(1797-1800) (1807-1814) (1797-1800)

Panic of 1907 Panic of 1857 Panic of 1837 Panic of 1819

Panic of 1907 Panic of 1857 Panic of 1837 Panic of 1819
(1907-1908) (1857-1860) (1837-1843) (1819-1824)
(1907-1908) (1857-1860) (1837-1843) (1819-1824)

Post WW-I Recession Panic of 1873 Long Depression Panic of 1893

Post WW-I Recession Panic of 1873 Long Depression Panic of 1893
(1918-1921) (1873-1879) (1873-1896) (1893-1896)
(1918-1921) (1873-1879) (1873-1896) (1893-1896)

Recession of 1957 Recession of 1953 Great Depression

Recession of 1957 Recession of 1953 Great Depression
(1957-1958) (1953-1954) (1929-1939)
(1957-1958) (1953-1954) (1929-1939)

Recession of 1960-1 1973 Oil Crisis 1973-1974 Stock Early 1980s Recession
Recession of 1960-1 1973 Oil Crisis 1973-1974 Stock Early 1980s Recession
(1960-1961) Market Crash
(1960-1961) Market Crash

Early 2000s Early 1990s

Late 2000s Recession Early 2000s Early 1990s
Late 2000s Recession Recession Recession
(Dec 2007-current) Recession Recession
(Dec 2007-current)
Signs of Recession
 Signs of Recession:

The Rate of Joblessness

Assumes Increases.
You Start Worried Large Companies Start
About All Of These Giving Depressing Profit
Figures.

Borrowers Start
Savings Are Used for
Defaulting
Day-To-Day 10 Signs of
Expenses Recession Credit Card Purchases
Shoot Up

The Country’s GDP

Goes Down Prices of Essential
Commodities Shoot Up

Prices Of Property And Stocks Come Down

Drastically, But Nobody Buys Them Companies Stop Filing Vacancies
Causes of Recession
 Causes of Recession:

 An economy which grows over a period of time tends to slow down

the growth as a part of normal economic cycle;

 An economy typically expands expands for 6-10 years and tends to

go into a recession for about six months to 2-years;

 A recession normally takes place when consumer lose condidence

in the growth of the economy;

 This leads to a decreased demand for goods and services, which in turn leads
to a decrease in production, lay-offs and a sharp rise in unemployment;

 Investors spend less as they fear stocks values will fall and thus
stock markets fall on negative sentiment.
 Causes of Recession in United States:

 The main cause is the Interest.

Interest based transactions cannot determine
the actual value of goods and services.

 Spiking Oil prices and War.

 The supplementary causes are:

Bad Loans in Housing The Fall of Money

Sector. Market.
 What happened in Real Estate Sector in U.S. /
Europe:

Sub-prime Loans causes Devastation in Economy:

During Rising Period (Before 2006): After 2006:

Improper evaluation causes

excessive bad loans in RE Prices of Houses starts to decline.
Sector.
Devastation in US RE Sector:

 Relaxed policies in lending practices making it easy to borrow

money;
The Impact
The Impact Pictures

An unemployed man waits at the Nevada

Job-connect Career Center in Las Vegas
Photo : Associate Press
The Impact : Newspaper Headlines
US jobless rate jumps to 25-year high
: The Telegraph (uk)
= US Unemployment jumped to its highest level since November 1983.
= Jobless Rate hit 8.5pc in March, up from 8.1pc in the previous month
= A total of 663,000 jobs were lost across a swathe of industries.
= Average work week during the month fell to a new record low of 33.2
hours.
= Construction companies cut 126,000, Factories 161,000, Retailers
50,000, Professional and Business Services 133,000, Leisure and
Hospitality 40,000 and US Government 5,000 jobs.
= Since the recession began in December 2007, the US economy has lost a
net total of 5.1m jobs, with almost two-thirds of the losses occurring in
the last five months.
= The number of unemployed people climbed to 13.2m in March.
= The no. of people forced to work part time for “economic reason” rose
by 423,000 to 9m.
The Impact : Newspaper Headlines
U.S. Jobless Rate Likely to Pass Europe’s
: New York Times

= In March’09, the American unemployment rate stood at 8.5%, the same

as the average rate for the first 15-members of the EU.
9.00% 8.50%
8.00%
7.00%
6.00% 4.70%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2006 2009
The Impact of Recession starts the Crisis in US:

 The US entered 2008 during housing market correction, a subprime

mortgage crisis and a declining dollar value;
 In February’08, a 5-year record no. of job has been lost. In September’08, the
unemployment rate rose to 6.1%, the highest in five years.

Job Lost in U.S.

180000 159000
160000
140000
120000
100000
80000 63000
60000
40000
20000
0
Feb'08 Sept'08
Crisis in US: Liquidity Crisis continued…………

 In early July, depositors at the Los Angeles offices of IndyMac Bank

frantically lined up in the street to their money;

 On July, IndyMac – the largest leder in the U.S. – was seized by

federal regulators.

 During the weekend of September 13-14, Lehman Brothers declared

bankruptcy after failing to find a buyer. Bank of America agreed to
purchase Merrill Lynch, the insurance companyAIG sought a bridge
loan from the Federal Reserve and a consortium of 10 banks
created an emergency fund of at least $70 billion to deal with the
situation.
 The biggest bank failure in history occurred on September 25 when
JP Morgan Chase agreed to purchase the banking assets of
Washington Mutual. The year 2008 as of September 17 has seen 81
public corporations file for bankruptcy in the United States, already
higher than the 78 in 2007.
 Crisis in US: Liquidity Crisis continued……..

 Lehman Brothers being the largest bankruptcy in U.S. history also makes 2008 a record
year in terms of assets with Lehman’s $691 billion in assets all past annual totals.

 The year also saw the ninth biggest bankruptcy with the failure of
IndyMac Bank.

 On September 29, Citigroup beat out Wells Fargo to acquire the

ailing Wachovia’s assets will pay $1 a share, or about $2.2 billion.
The FDIC said that the agency would absorb the company’s losses
above $42 billion; In exchange they would receive $12 billion in
preferred stock and warrants from Citigroup.
The Impact on “Fourth State”: Can It Survive

 In US, Circulation of Newspapers has been reduced by 7% in last six

months;
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4 2.4

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 “American Society of News Editors” has reported that last year about six
thousand journalists lost there job.
The Impact on “Fourth State”: Can It Survive

 In US, Circulation of Newspapers has been reduced by 7% in last six

months;

1946 2009

No. Newspaper 36% of US 18% of US Population

Reader Population

 “American Society of News Editors” has reported that last year about six
thousand journalists lost there job;

 France has announced 600 million euro for to help the newspaper;

 The main earning source of these Newspaper is advertisement from RE

Companies. But due to recession and devastation in RE Sector
advertisement income has been reduced by 12%. ;
The Impact on Bangladesh’s Economy:

 Term Loan distribution, an important …suchok…….in Investment, has

been reduced by 32%;

Oct to Dec’07 Oct to Dec’08

Amount of Term
Tk.58,780 million Tk.39,900 million
Loan Distributed

 The rate of opening of L/C to import capital machinery has been reduced
by 42% than that of last fiscal year;
 The stock market portfolio has lost 67.00 million US dollar & no new
portfolio investment has been noticed.

 The stock market portfolio has lost 67.00 million US dollar & no new
portfolio investment has been noticed.
Government’s Response: The
Recovery Schedule
The Recovery Schedule:

 The Bail-out:

A bailout is an act of loaning or giving capital to a

failing company in order to save it from bankruptcy,
insolvency, or total liquidation and ruin.
The Recovery Schedule: US Bailout Plan

 US Bail-out Plan : Emergency Economic Stabilization Act of 2008

 US Bail-out Plan : Emergency Economic Stabilization Act of 2008

 Beginning of Divine Revelation leads to a new era

Laws and Values from

Guidance from the Heaven, not earth
Creator who knows Way of life as per
man unlike other Divine guidance,
not human desires

For the entire world,

not a region or Long term, not
Divine
country Revelation short-term

Permanent
Addressing all guidelines and
aspects of life solutions, not
temporary

Addressing all
human beings, rich and poor, black and
white, educated and the ignorant
 Origin over 1400 Years ago

Muhammad presented the guidance over 1400 years back…for all times to come

610 AD 2009 Now and the future…

Muhammad’s proven cure can

The best values of life we see solve all our problems and set the
today were given 1400 years ago human world on the right course
once again
 Muhammad and Religion

With the advent of Muhammad, the notion of religion changed

BEFORE AFTER

 Religion has nothing to do with practical life  Religion guides every aspect of life.
 Religion betters life.

Religion

Life Religion

Life
Muhammad’s Guidance Covers all Walks of
Life

Social life

Knowledge & learning

Politics & Governance

Commerce & Economy

Ethics & Etiquettes

Law & Justice

Hygiene

Human Rights &

Relations

and more…
 Total change. A Companion Describes…

Jafer(RA), a companion of Prophet Muhammad at the court of a Christian King

in Abyssinia :

“Your majesty! We were ignorant

people, worshipping idols, eating
carrion, oppressing neighbors,
brother fighting brother, the strong
dominating the weak, when amidst
us was raised a man (Muhammad)
whose nobility, integrity and
trustworthiness were already well-
known”
“He called us to worship God
alone... he commanded us to speak
the truth, to honor our promises, to
be kind to our relations, to be
helpful to our neighbors, to cease
all forbidden acts, to abstain from
bloodshed, to avoid obscenities and
false witness….”
 li m ps
e Principles of the Prophet
AG

Practice
Preach

Beliefs
+ Right Actions
= Results

Right Means + Right Ends

= Success

“He was …without a bodyguard, without a palace, without a fixed revenue. If ever any man had the right
to say that he ruled by a right divine It was Mohammad, for he had all the power without instruments and
Observation without its support. He cared not for dressing of power. The simplicity of his private life was in keeping
with his public life." Bosworth Smith
 li m ps
e Noble Character
AG

 Simple yet elegant habits

 No material temptations
“10 years”, said his servant, “ I
 Relished tasty food, enjoyed the beauty of flowers, was with the Prophet, and he
never hit me, abused me or
the fragrance of perfumes insulted me”

 Never scolded his young servant

 When seated among his followers, he would not occupy special seat.
 Personal belongings at the time of his death= Mattress of dried palm leaves,
water skin and an armor

"Circumstances changed, but the prophet of God did not. In victory or in defeat, in power or in adversity,
in affluence or in indigence, he is the same man, disclosed the same character.”
Observation
Prof K.S Ramakrishna Rao, Mohammed The Prophet
 li m ps
e Generous, Humble and Peace Maker
AG

 Forgave the people of the town of Ta’if who wounded him and chased him out of
the city
“Blessings on the men of
 Ordered kindly treatment of captives, despite Madina, they gave us wheat
bread to eat when there was little
these were the very men who had inflicted insults of it, contending themselves with
and injuries to him dates”- A Captive

 After the conquest of Makkah, he proclaimed general amnesty

to the people who persecuted and tortured him
and his followers
 No exhibition of ruthless power, no feelings of revenge, no plunder
 Victory meant humility to God

"It was the rigid simplicity, the utter self-effacement of the Prophet, the scrupulous regard for his pledges,
his intense devotion to this friends and followers, his intrepidity, his fearlessness, his absolute trust in God
Observation
and in his own mission. These and not the sword carried everything before them and surmounted
every obstacle.”
M.K.Gandhi
 The Light Spreads- Arabia to the World

Muhammad sent envoys to the civilian centers of that time

Persia ( Iran)
Roman
Empire

Abyssinia
(Ethiopia) Hauza
( Yemen)
 Lifetime of Lofty Achievements

Received
Divine Revelation

Communicated to
his generation Established a
God-fearing,
Explained the prosperous,
Left behind a lasting
Divine message
peaceful, guidance
successful
Demonstrated the
theory and
with practice satisfied society

Trained his
companions

"My choice of Muhammad to lead the list of the world's most influential
persons may surprise some readers and may be questioned by others,
Observation but he was the only man in history who was supremely successful on both the religious and secular level.”

Michael H. Hart, THE 100: A RANKING OF THE MOST INFLUENTIAL PERSONS IN HISTORY
 li m ps
e The Message: O People….
AG

 Remember that you will indeed  The best of the ways is one
meet your Lord, and that He will trodden by the Prophets
indeed reckon your deeds.  The best of the actions is that
 Beware of Satan for the safety of which is beneficent.
your religion. He has lost all  The best guidance is that which
hope that he will ever be able to is put into practice.
lead you astray in big things, so
beware of following him in small  The most valuable possession is
things. the contentment of heart.
 The best provision is that of
piety.

Observation “If greatness of purpose, smallness of means and astounding results are the three criteria of human
genius, who could dare to compare any great man in modern history with Muhammad ”
Lamartine, Historian
 Equality and Brotherhood

 All mankind is from Adam and Eve.

 An Arab has no superiority over a non-Arab
nor a non-Arab has any superiority over an
Arab;
Appointed Bilal (RA), a black
 A white has no superiority over a black, nor a slave, as the first individual to
the office of Mueth-thin (the
black has any superiority over a white- except one calls to Prayer)
by piety and good action.

“O mankind! We created you from a single (pair)

of a male and a female, and made you into
nations and tribes, that you may know each other.
Verily the most honored of you in the sight of Allah is the
most righteous of you. And Allah has full knowledge
and is well acquainted (with all things)”
(Quran- Chapter 49)
 The Benefactor of women

First to accord higher status to women, first to grant rights

Right to Live
 Education

Social Rights
 Legal Rights

Inheritance
 Privacy &
Chastity 
Maintenance
Rights
 Respect during
Menstruation days 
Ownership

Security &
Rights
 Protection
“It was Islam that removed the bondage in which women are held from the very dawn of history
and gave them a social standing and legal rights such as were not granted to them in
Observation England till many centuries later.”

Lady Cobbold, Pilgrimage to Mecca

 Message for Men: O Brothers

 It is true that you have certain rights in regard to your women, but
they also have rights over you.
 Remember that you have taken them as your wives, only under
Allah's trust and with His permission. If they abide by your right then
to them belongs the right to be fed and clothed in kindness.
 Do treat your women well and be kind to them, for they are your
partners and committed helpers.
 And it is your right that they do not make friends with anyone of
whom you do not approve, as well as never to be unchaste.
 Revert to Islam Statements
“It’s only in the past 20 years
that women in this country were
able to open a bank account
without their husband signing
the cheques. Islamic women
have always had those rights. If
I stick to what the Quran says,
it’s clear to me that I will have
total equality.- “Jan, a British
revert comments on Channel 4
“… I started reading the
Koran and it was an
absolutely breathtaking. It
could have been written
yesterday for today.”-
Yvonne Ridley, BBC War
correspondent after
embracing Islam
 Prophet’s Formula of Success

 ‘I offer you happiness of this world and that of the next.’

 Acknowledge
There is no God but Allah and
Muhammad is the Messenger of Allah.

 ‘ I call you to God, the Unique, without any associate and to His obedience
and to follow me…for I am the Messenger of Allah.’
 ‘People! No prophet or apostle will come after me and no new faith will be
born.”

Adam Noah Abraham … Moses … Jesus Muhammad

 The Light Spreads Further

His companions disseminated his message around the world

and humanity has reaped benefits wherever and whenever
Prophet Muhammad’s guidance has been followed

More than 1 billion Established God-

followers today fearing, just, peaceful
and prosperous state

‘The Muslim World has given

many innovations that we
take for granted in our daily
life.’ How
How Islamic
Islamic Inventors
Inventors changed
changed
the
the world,
world, The
The Independent
Independent

Human history has never known such a complete transformation of a society or a place before or since –
and IMAGINE all these unbelievable wonders in JUST OVER TWO DECADES.”
Observation
Michael H. Hart, THE 100: A RANKING OF THE MOST INFLUENTIAL PERSONS IN HISTORY
 Muhammad & You!

Who is Muhammad ???

Who prevented injustice and called for justice, love, togetherness and cooperation for the best.
Who called for helping the needy, visiting the patients, love and exchanging advises between people.
Who never cheated anyone, even his enemies.
Before answering, give yourself a chance to know him…
This is the way how to judge a person
To know him, then to judge
How could you hate someone without knowing him or knowing his life details?
Now it's time to know who he is.

He is Muhammad (peace and blessings be upon him)

 Muhammad & You!

You too can benefit from Muhammad, the Messenger of

God, to gain success in this life and the Hereafter.
Please get to know more and change your life.

Recommended Recommended
Websites Books
(available at www.amazon.com)
 The Holy Qur'an: Text, Translation &
Commentary by Abdullah Yusuf Ali
www.WhoisMohammad.com
www.islamicity.com Muhammad: A Biography of the
 www.whyislam.org Prophet – By Karen Armstrong
 www.soundvision.com  Muhammad (Critical Lives)- by Yahiya
 www.hyahya.org/ Emerick, Yahiya J. Emerick
 www.yusufislam.org.uk/
Towards Understanding Islam- By
A.A.Maududi

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