wt is the reasion behind the rescession ...is it inflation? if u see last 30 year inflation is growin
if u seen last 30 year inflation has grown? so is cost? and liveing basic requirment to grown up... why inflation going high and high do large population consuming thing more and porduction is lesser ? if so than why production going lesser do earth dont have there stock are we going to have lesser naturale stock of lifes basics fullfilling things
Best Answer
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Grudun answered one year ago …
The reason for the current recession is delayed pain. There where multiple negative economic events(long term capital management, dot com crash, 9/11, and final the housing/credit bubble) in the last 10-15 years that should have been a little worse at the time but the federal reserve pumped excessive capital in the market which reduced the short term financial pain for the market but set up a larger potential for pain in the future. So some of the dot com crash pain was delayed and some of the 9/11 ecomonic pain was delayed etc. So now there is all that stored up economic pain that needs to be released and no where to store all of it(some is going into commodities but it cannot hold as much as the housing and credit markets did). So now banks and idividuals are dealing with all the issues of bad mortgages/bonds and declining assets(primarily homes) amid rising prices. This is also depressing the mood of comsumers and investors making a lot of people less likely to spend and invest slowing the flow of capital which is slowing economic growth.
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