Economic Recession: The Global Turmoil (Part 1)

The US led recession has created turmoil and confusion not only in the United States but in the whole world as industrial countries followed the economic problem. With the present economic conditions, many businessmen has a grim business outlook for the incoming year of 2009. But what is recession and why all people are troubled with it?

There is no definite definition of recession. However, economist often define this market condition as a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP growth, real personal income, employment (non-farm payrolls), industrial production, and wholesale-retail sales.

The US recession has been triggered or rather worsened with the down housing market with many real estate and properties undergoing foreclosure. This is often said to be due to the negligence of the buyer to make up with their mortgage payments.

Nonetheless, taking the root of the situation, the bankers or the financial lending institution has a great part in this problem as these financial lending institution failed to recognized the capacity of the individual to make up the loan in the long run.

(to be continued....)