We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Effect of the Economic Recession - Research Paper Example

Comments (0)
The research paper focuses on the phenomenon of the economic recession. The author gives a definition of this term, describes and gives the reasons for the great recession in the USA and explains who this recession effected on the rest of economics…
Download full paper
Effect of the Economic Recession
Read TextPreview

Extract of sample
Effect of the Economic Recession

Download file to see previous pages... Many experts believe that the seeds of this recession lie in the policies of the Federal Reserve Bank of America in the aftermath of the attack on world trade center. The bank feared that the terrorist attack would create a panic in the market and hence will affect U.S. economy. Fearing this, the bank decided to lower the interest rates to a record low level (Makinen, 2011).
The effect of this policy was that credit was cheaply available to the people. This situation was misused by Wall Street and many banks such as Fannie Mae and Freddie Mac. What these banks did was to provide people with a very cheap loan on houses that couldn’t have been affordable otherwise. The property market was rising at the time and so huge amount of sub-prime loans were issued to the American people. The people took loans from the banks as they were confident that the rise in house prices would provide them with the money they needed for repayment of a loan.
But after some time of the boom, the property market busted. The price of the houses touched a record low and so people started to default on their loans. They didn’t have money to pay back. This meant that the banks who had issued this loan were in deep cash problems. The phenomenon was so huge that first Fannie Mae and Freddie Mac filed for bankruptcy (Jicking, 2007). Next in line was Lehman Brothers which had similar problems. With Lehman Brothers filing for Chapter 11 Bankruptcy, the world was heading towards credit crunch. The banks worldwide didn’t know which bank had how many bad debts to its credit. There was suspicion all around and hence the banks were weary of giving loans to each other.
When the banks withheld supply of money in the market, the businesses started to feel the heat. All these events had a ripple effect. There was a reduction in demand and because of this unemployment rates went up in the U.S. ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
The Effect of Recession on Dividend Policy
The Effect of Recession on Dividend Policy Analysis and Discussion The research methodology adopted sought to answer the research questions in an attempt fulfill the research objectives these are: to determine whether there was a change in capital structure during the recession and whether or not this resulted to a change in the dividend payout, to determine whether there was a change in the payout ratios of companies in Saudi Arabia after the recession.
12 Pages(3000 words)Dissertation
Effect of recession on U.K. clothing sector
e UK economy went into recession. It led to decline in output of the economy as well as increase in the unemployment rate. There has been decline in the real output by 6.4 per cent. However, in the second quarter of 2010, it was apparent that GDP had grown by 1.9 percent.
12 Pages(3000 words)Literature review
Effects of Economic Recession on American Jobs
As per the record maintained by the National Bureau of Economic Research's Business Cycle Dating Committee, the recession was officially declared to have ended by June, 2009 (Reddy cited in Hall). There did occur a baby recession period in US in 2001, though the actual recession occurred in the years of 2008 and 2009.
6 Pages(1500 words)Research Paper
Causes of the Economic Recession
Many indicators of macroeconomics vary in an almost similar perspective and this includes the measurements of production which are investment spending, incomes of the households, employment, investment spending and business profits. During an economic recession all these indicators are at low levels.
10 Pages(2500 words)Essay
The Role of Government in Economic Recession, Fiscal Policy
In this quarter the level of GDP declined as a result of the decline in customer spending by 1%, this decline was as a result of the high levels of unemployment in the economy. (Alan Rapperport (2009)) The current recession is considered the longest since 1947 and due to increased government spending the budget deficits this year is expected to reach $1,600 billion.
4 Pages(1000 words)Essay
Economic recession
Large business conglomerates have also suffered huge losses due to the recession this time. But, what exactly is the recession' When a country's Gross Domestic Product (GDP) growth registers a decline for six or more months in a year on a continual basis or fails to recover for years together, it results in a recession.
12 Pages(3000 words)Essay
How do economic recession affect people's behavior
Market process theory suggests that the sum total of knowledge is continuously increased by individual customers who come to the market place to trade their resources and ideas. In this process, the benefit is accruing not
2 Pages(500 words)Essay
Economic recession and human behavior
The financial life that has been carefully cultivated by many individuals is being hit by dropping investment returns and banking policies that adversely affect credit. As unemployment and inflation change the nature of a culture, domestic violence and criminal behavior can
17 Pages(4250 words)Essay
Global economic and lobal recession
In this discourse, the mixed fortunes of the performance of the industry as presented by economic recovery and political uncertainty will be discussed as Niththyananthan (1) observes.
7 Pages(1750 words)Essay
Economic Recession of United Kingdom
An overall deceleration of economic activities and business cycle reductions are defined as recession in economic terms. However, no standard definition exists but generally, a period of falling economic activity is characterized as recession.
4 Pages(1000 words)Essay
Let us find you another Research Paper on topic Effect of the Economic Recession for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us