RECESSION

Recession

Recession

Introduction

The US arguably had the biggest and most powerful foreign market. Because the US supplied many other countries with essential items, the recession would also affect those countries, and in turn affect countries all around the world. Since the US was such a financial giant, it could actually determine to some degree the fate of the world's economy. It had such an extensive amount of money and such a wide variety of foreign markets to sell products to that a recession would affect all of the countries with close ties to them. Those countries would almost certainly feel more than a ripple of their recession. (Rutledge 2001:337-340)

Discussion

As USA faces a visible recession in current times, it is evident that economists are in overdrive to review the fiscal statistics and give expert opinions. The stock markets have already created a panic situation in the country. The biggest lenders are now facing a cash crunch and for the first time they are also admitting it.

After months of economic downturn, the impact of the recession on higher education is beginning to emerge. In the US, the major victims of the downturn are small colleges, yet despite this, many education professionals still believe that higher education is recession proof. (Rothbard 2002:1-2)

Even the strongest feel the cracks in the face of an earthquake. The cracks are visible even during a brief recession. When the markets are disrupted the effect shows. Unemployment is the greatest dread of any man. How will he feed his family now? Expatriates are being shown the doors. America which has been home to many people is now turning them out. Branches of American companies abroad are shutting shop. When there are cuts in the weekly budgets, priorities changes, when job seekers are dumped there is a big change in ...