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.

A brief history of economic recession in the U.S.

With the economic crisis of today, many people are probably wondering if this recession will end, what caused it to happen and will happen again. This article provides a brief history of U.S. recession, which is responsible for it and some of After Effects. I never thought in my dreams that is almost a recession every decade since the end of 1700 would have been with, said the panic of the first1797th

1797-1800

or effects caused by the deflation of the Bank of England

or considered the first U.S. recession

Or disruption of commercial real estate markets

1837-1843

or allocated to banks in trouble

banks stopped paying in gold and silver

o The people had no confidence in paper money

1893-1896

or caused by the failure of"Reading Railways

or European investors to pull back and let the U.S. financial system in chaos

and exchanges and banks collapse

1918-1921 (also known as the post-war recession)

hyperinflation or Europe, the U.S. had a recession due to proliferation

or loss of production, the disruption is due at the end of the war

Or There was a large influx of workers asTroops returned home, the skyrocketing unemployment

1929-1938 (The Great Depression)

or The Case of the "Great Depression" is a matter of great debate among economists

OR Here are a couple of a depreciation in asset prices and commodity prices, dramatic drops in demand and credit, and disruption of trade

or 30 million Americans with no income what so ever, WW II, similar effects

1973-1975 (oil crisis of the1970)

o The price of oil had quadrupled by OPEC, along with government spending on the Vietnam War

Or OPEC stopped exporting oil to the United States and other Western nations to punish them for supporting Israel

or gas has fallen from 25 cents to a dollar in a few months

1987-1989 (Black Monday)

o The stock markets around the world crash

O Dow Jones has lost 22.61% in aDay

debate on the consequences or continue for many years after, no definitive solution

March 2001 - Nov2001

or terrorist attacks on the World Trade Center "

or collapse of the dot.com bubble

o This is still the United States is now

2007 - Present Day

or caused by reckless and unsustainable credit

o For the first time since 1930 that all majorThe banks fail

o Some people say that this is the worst recession since World War II

Although the causes of the recession, very powerful, as you can see there are new economic phenomena, happen again and again throughout history. Depending on what the cause was at that time could know anywhere from a few months to several years, only that it happened, happens and will happen again in the future.