Recession and financial crisis in India

Dani. Y, First Year MBA student, Jawaharlal Institute of Technology, Kaliapuram, Coimbatore -105.

Importance ‡To give an overall view about recession ‡Its impact in the financial markets .

. large financial institutions have collapsed or been bought out.Introduction ‡The global financial crisis. really started to show its effects in the middle of 2007 and into 2008 ‡Around the world stock markets have fallen. and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems. brewing for a while.

. an increase in unemployment. and a decline in the housing market. and if a recession continues long enough it is often then classified as a depression. typically defined as a decline in GDP for two or more consecutive quarters. A recession is generally considered less severe than a depression. A recession is typically accompanied by a drop in the stock market.Definition of recession A period of general economic decline.

IT field accects . (2) Rupee is weakening against dollars and (3) Our banks are facing severe cash crunch resulting in shortage of liquidity in the market.Financial Crisis in India India facing heat on three grounds: (1) Our Share Markets are falling every day.

Positive factors ‡In India the Banks are more or less secured ‡In India. still the major banking operations are in the hands of Public Sector Banks ‡Saving mentality people .

Freddie Mac. Washington Mutual. Fannie Mae.Financial markets impacts ‡The IMF estimated that U. . banks were about 60 percent through their losses ‡Initially the companies affected were those directly involved in home construction and mortgage lending such as Northern Rock and Countrywide Financial ‡Several major institutions failed. Wachovia. were subject to government takeover. and AIG.S. These included Lehman Brothers. Merrill Lynch.

Responses to financial crisis ‡The U.S.S. totaling nearly $1 trillion during 2008 and 2009. Federal Reserve and central banks around the world have taken steps to expand money supplies ‡The U. ‡Governments have also bailed out a variety of firms . executed two stimulus packages.

there will be people whose businesses go under simply because of the speculation about a recession.Conclusion Whether a global recession occurs or not. It's incredibly sad but it's a fact and it's happened all throughout history whenever the economy has faltered .

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