Š

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.

Š

Š

.

.

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

Š MODE OF DATA COLLECTION ƒ Secondary Data Š RESEARCH APPROACH ƒ Research is best suited for Descriptive Research.Š SCOPE OF THE STUDY ƒ The study/research of recent Economic recession in America. Research undertaken to learn about financial crisis and to measure these magnitudes in the countries like US and India. .

Š Many describe 2011 as a period of ´heightened uncertaintyµ for the global economy because there are so many things than can go seriously wrong. the world is the most unstable it·s been in years in key regions ƒ ƒ ƒ ƒ ƒ Š Middle East / North Africa Unrest Food Cost US Debt Ceiling / Budget Crisis European Debt Crisis US Housing Market . On the geopolitical side.

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

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

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

Debt deleveraging Two views of future growth .

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

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

Š Even its most ardent admirer must now be questioning America's political process. would we rather be at the mercy of a Sinic hegemon or the ummah of a global caliphate? Š . American decline ³ something that is hardly in our interests as Indians.

In India.Š Š 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. 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! .

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

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

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

Š Š . a move to control speculation and short-termism in the financial sector needs to prop on state level regulation. which often deviates from the predictions of the private "market makers.Š 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. both at a national and an international level." As with an expansionary strategy to revamp the real sector.

Sign up to vote on this title
UsefulNot useful