17 November 2008
plz anybody tell about my query how a country goes under recession? what are the main factors for declaring recession? how we say japan, germany, us, uk goes under recession?
18 November 2008
dera lambodar, i m telling you the cause for current recession in usa. it is very lengthy and continueous process for a country to goes under recession. sometime ago us banks started giving the home loan and other loans to the person who had not any income in their hand to repay the loan as per their policy and govt. approvals. and after that the financial institutions called SPV Special purpose vehicle converted those debts to the bonds as the debt is asset of the company and those bonds were issued to the market. at the time of repayment the borrowers had defaulted in repayment of loan as they have no any money and they have spent all their loan amount. and the value of the bonds representing those debts were fallen. this position is called paise ka hawa me ud jaana. money flies in the air...... due to this the banks were bankrupt and recession starts as there is no moeny....
CAclubindia
