The present market condition is limping through a state of unpredictability.
Inflation, recession, unemployment have all marred the economy to such an extent that it has become very important to remain protected and insured.
Recession has threatened to sink the economy in such a manner that experts believe that we are going through the worst economic crisis since 1929.
Recession is basically an economic scene wherein the GDP of a particular country begins to dip.
If such a state remains continuous for six month to a year, then it is called a 'recession' The recession which started in the US, primarily due to the crumpling of the sub-prime mortgage sector, has now spread to the entire world.
Recession happened in the country in the latter part of 2008, and then spread to various businesses and different countries.
Every newspaper worth its salt, reported the collapse of Lehman Brothers and other big companies that either declared bankruptcy or did major layoffs and cutoffs to survive in this volatile economy.
The subprime mortgage sector crisis happened because mortgage houses began to give credit and loans to many people and most of these borrowed money from the banks to buy homes.
When they failed to clear the payments, the banks were not able to recover the cost.
Soon banking systems were hurt financially and they started to stop giving loans because they feared getting their money back.
That began to hurt investments and businesses were not able to carry out their operations, as a result of which they had to shut shop.
This spiraled to employees and workers who were laid-off leading to high unemployment.
Due to this, people had less money to buy things which began to have adverse effect on the manufacturing and the service industry as well.
So, we see how the chain cycle can affect every aspect of the economy.
Now we have the prices of basic commodities like food products going up.
Banks are now increasing the cost of borrowing and other transactional costs, to make sure that they are able to sustain profit margins.
At the same time, the central banks have reduced interest rates and have come up with 'bailouts' and stimulus packages to keep the economy of their respective countries running.
The US has also done a lot of constructive things to keep the wheels of economy running in good stead.
Economist and financial experts have dual views about how far bailout plans can heal the economy.
There is good news though, because the market analysis shows that we have been able to tide over the worst economic phase and recession although very much, there, has gone down.
Still, credit is not as forthcoming as it was before and unemployment rate is still high.
All of these just go to show us that we need to be very careful without finances and make ourselves financially secure.
We need to insure our lives, our possessions so that in case of any unlikely, unforeseeable event, we are able to secure our future.
Inflation, recession, unemployment have all marred the economy to such an extent that it has become very important to remain protected and insured.
Recession has threatened to sink the economy in such a manner that experts believe that we are going through the worst economic crisis since 1929.
Recession is basically an economic scene wherein the GDP of a particular country begins to dip.
If such a state remains continuous for six month to a year, then it is called a 'recession' The recession which started in the US, primarily due to the crumpling of the sub-prime mortgage sector, has now spread to the entire world.
Recession happened in the country in the latter part of 2008, and then spread to various businesses and different countries.
Every newspaper worth its salt, reported the collapse of Lehman Brothers and other big companies that either declared bankruptcy or did major layoffs and cutoffs to survive in this volatile economy.
The subprime mortgage sector crisis happened because mortgage houses began to give credit and loans to many people and most of these borrowed money from the banks to buy homes.
When they failed to clear the payments, the banks were not able to recover the cost.
Soon banking systems were hurt financially and they started to stop giving loans because they feared getting their money back.
That began to hurt investments and businesses were not able to carry out their operations, as a result of which they had to shut shop.
This spiraled to employees and workers who were laid-off leading to high unemployment.
Due to this, people had less money to buy things which began to have adverse effect on the manufacturing and the service industry as well.
So, we see how the chain cycle can affect every aspect of the economy.
Now we have the prices of basic commodities like food products going up.
Banks are now increasing the cost of borrowing and other transactional costs, to make sure that they are able to sustain profit margins.
At the same time, the central banks have reduced interest rates and have come up with 'bailouts' and stimulus packages to keep the economy of their respective countries running.
The US has also done a lot of constructive things to keep the wheels of economy running in good stead.
Economist and financial experts have dual views about how far bailout plans can heal the economy.
There is good news though, because the market analysis shows that we have been able to tide over the worst economic phase and recession although very much, there, has gone down.
Still, credit is not as forthcoming as it was before and unemployment rate is still high.
All of these just go to show us that we need to be very careful without finances and make ourselves financially secure.
We need to insure our lives, our possessions so that in case of any unlikely, unforeseeable event, we are able to secure our future.
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