Global stock markets have resumed their recent slide, weighed down by fears that the world is sliding

into a double-dip recession Concerned that the eurozone debt crisis could be spreading to the US banking sector, regulators in New York have stepped up their scrutiny of the US arms of Europe's largest banks. Jenkins noted that one bank borrowed $500m (300m) for a week from the European Central Bank on Wednesday.

To study the recent financial crisis arises in America. To study the possible triggers that lead to economic crisis in 2011. To study the causes of recession in America. To study how US political class dysfunction differs from India. To study how crisis be worse for India as US recession looms large.

SCOPE OF THE STUDY

The study/research of recent Economic recession in America.

MODE OF DATA COLLECTION

Secondary Data

RESEARCH APPROACH

Research is best suited for Descriptive Research. Research undertaken to learn about financial crisis and to measure these magnitudes in the countries like US and India.

Many describe 2011 as a period of heightened uncertainty for the global economy because there are so many things than can go seriously wrong. On the geopolitical side, the world is the most unstable its been in years in key regions

Middle East / North Africa Unrest Food Cost US Debt Ceiling / Budget Crisis European Debt Crisis US Housing Market

End of QE2 Chinese Inflation Chinese Economic Distortions Terrorism Provoking Costly US Response US State Budget Crisis

People wonder what has been happening recently, with wildly gyrating financial markets and government debt problems. It seems to me that we are bumping up against an economic growth ceiling, brought on by a limited supply of cheap oil.

World oil production in million barrels per day, versus Brent oil price, based on EIA data

Debt deleveraging

Two views of future growth

Wall Street Journal graph showing that investors are now demanding higher yields, in order to offer securitized mortgage-backed loans

US Consumer Credit Outstanding, based on Federal Reserve Z.1 data

Even its most ardent admirer must now be questioning America's political process. American decline something that is hardly in our interests as Indians; would we rather be at the mercy of a Sinic hegemon or the ummah of a global caliphate?

In the US it appears that only the Tea Party extremists are willing to jeopardise their republic in order to pander to their vote banks. In India, it appears that all of us are habitual Tea Party-types willing to defend our positions virtually to "the death" even if it means that in the process all of us may die!

India weathered the 2008 crisis well, but there are fears that this time round the country is not even ready for a crisis of much lesser magnitude, let alone a full-blown debt default in Europe or a possible US recession

Weak finances, persistently high inflation and policy inertia have considerably weakened the government's position today. The fiscal space in India is also comparatively more constrained.

Even without the crisis, things were not looking good for Indian economy. The overall impact of the global uncertainty is difficult to predict as of now

Our alternative perspective on the melt-down of the global economy contests the theory and related policy prescriptions that are based on the "efficient market" hypothesis of the mainstream school. The alternative position we offer looks at the uncertainty-ridden trail of markets, which often deviates from the predictions of the private "market makers." As with an expansionary strategy to revamp the real sector, a move to control speculation and short-termism in the financial sector needs to prop on state level regulation, both at a national and an international level.