U.S. recession

The United States is in an extended and severe economic downturn. This decline has taken the form of depression, although he started as a recession. Today's economic indicators - both macro and micro - are at a very low level.

What is a recession?

The recession is because a slowdown in global economic growth and negatively defined. The gross domestic product or GDP, the measure of the total value of all goods and services produced in the economy falls.Overall, the consumption and production is declining at both. Because of this vicious circle there is a general increase in unemployment and inflation.

How did you start?

This particular recession began in December 2007 and reached a higher intensity since September 2008, accepted main cause of the recession was sub-prime mortgage crisis. Much has been credit unworthy people who had been a poor credit history. This credit was generally used in residential construction. It was through the overflow of capital, isHousing Bubble. This bubble enormous increase in house prices, and finally blurted out the bladder. All credit was lost in the market because the mortgage was written sharply in value. This led to the unprecedented financial crisis in the national and European markets.

Bad credit causes a lot of investment and commercial banks across the Western economy to fall. Worthy of note was the fall of Lehman Brothers. Once a major bank that went bankrupt on September 15, 2008. Thisbig shock, has spread panic, and the stock market crash. to obtain many other banks, Fannie Mae and Freddie Mac as government subsidies and bailouts to move beyond the crisis.

Fallout of recession

High rates of inflation: this has led to higher food and oil prices. Oil prices hit an all time high of more than $ 150 a barrel.
Low consumption liquid cash flow has slowed down, which led to the lowest income.
Low productivity and ServicesIndustries immediately. This has led to large layoffs and an unemployment rate higher than the national market.
Decline in international trade: the demand for imports on the domestic market fell and suffered on international trade.

buried because of globalization and networking of economies in the world, the crisis in Europe, Russia, India and China. Emerging markets were hit very hard.

This scene:

It 'been a crisis for the last four quarters of negative growth wasregistered everywhere. But, off late the clouds seem to be scattering now. Barack Obama at White House resulted in new optimism in the market. The NASDAQ and Dow Jones have gained some momentum. Big financial institutions and banks are starting to build upon their capital on back of huge government spending.