"Money which is the source of unlimited benefits, becomes the cause of calamity and unhappiness if not controlled" - Robert Shan
The above quotation by Robert Shan exactly describes the reason of current global financial crisis. The current global financial crises are the cause of defaults on sub-prime mortgages in US. Sub-prime is a high risk debt offered to people with poor credit worthiness or unstable incomes. Major Banks is US have landed in trouble after people could not repay the loans. Many banks have turned to be defaulter. After the case of Lehman Brothers, Merrill Lynch and other American banks, the banks of other countries are also facing the default risk.
Because of the sub-prime mortgage, the housing market soared. The realty sector boomed but could not sustain for long, and it collapsed because of the loan defaults. This situation spreaded like wild fire and put the US economy in danger. This coupled with rising oil prices and slowed down the growth of the economy.
[...] In crores) Quarter-II In crores) Quarter-II Performance of Textile Sector Name of the company % change Quarter-I % change Quarter-II Raymond (Source: Confederation of Indian Textile Industry- CIIT) 2. Steel Industry: There is a major impact of Global financial crisis on Steel industry also fall in the prices of steel products has been recorded in the last month. And in comparison with June-2008, the prices have fallen by as the prices of its raw material i.e. iron and coal have fallen by 61% and 33% respectively. [...]
[...] Position of Sales, Consumption and Net Profit of Major Steel Companies in October-2008 [Figures in percentage] Name of the Sales Consumption of Raw Net Profit company material [Source: ET Bureau] From the above table, it can be seen that ISPAT and JSL shows net loss where as TATA steel and JSW Industries having moderate performance. The overall performance of the steel industry remained hopeless Cement Industry: Cement industry shows 15% rise in sales but its net profit has declined by 25%. [...]
[...] In such scenario, it becomes necessary for us to mark out the impact of ‘Global Recession' on the different sectors of Indian Economy. It becomes very difficult and rigorous to mark all the sectors here. So, we have selected some major and important sectors for our study purpose. We hope that this study will be useful and fruitful to find out the ways to tackle the recession. What is Recession???? To define the term ‘recession' perfectly, becomes difficult, because different economist hold different views on recession. [...]
[...] Impact of Global Recession on Indian Economy: There can be seen the effects of US economic crisis all over the world. Indian economy can also not be an exception to this. Falling sales, rising inflation, increasing costs and drying cash flow are some of the effects that India has derived from US economic crisis. Indian companies have major outsourcing deals from the US. There are large scale exports contracts with the US. There was a large scale direct and indirect investment in Indian companies. [...]
[...] During this 15years, the prices of the commodities decreased but the prices of Gold and Silver remained firm in the International Markets. The second phase of the recession started in 1864 and it lasted in 1897. During this period also the prices of the Gold and Silver remained firm in the International Markets but the prices of other commodities increased. The third phase of recession was more horrible than the previous two phases. This phase started in 1912 and lasted in 1918. [...]
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