If we analyze the recession 2010 of United States, we may trace many reasons behind the financial down fall. The down fall as well as the factors may be interdependent it means that there is a possibility that the recession has been caused by lets say individual approaches towards banking and investment. And there is also a possibility that the recession has caused the individuals distrust the banking system. But individuals have less likelihood of being a reason for recession. Macro levels issues have contributed to it most probably. However, it is the case that now we Americans doubt in the safety of our money if kept in banks. It is also feared that this recession will lead United States of America to a depression like the prior great depression of 1930s. People are not investing and placing money in banks as the banks are not providing loans. Even the firms are closing down or are going through crisis due to the losses in business. Everyone is uncertain about what is going to happen in the country. Banks are unable to prevent bankruptcies.
Household money is not properly channeled to the investment. The government sold bills for no purpose which has reduced the availability of the investment bank credit. Many things are collectively making the situation worse. The individual as well as mass level strategies are needed to come out of the situation. Although new strategies suggested by the policy makers and think tanks have flaws and draw backs but still these strategies can prevent the recession. At individual level it is required that we live with in our limited means. Self sufficiency is the most important thing US people need today at individual as well as at the mass level. The state should take measure sin which it does not have to take the funds from external sources. We must regain confidence in lending money.
Money is safe in banks. We must believe in it. The banks can only lend money if they are in strong positions and can recover the losses. The investment is possible with peace in the country. As the economy of United States has multinational firms that are contributing to its national income, they operate in the regions which are on war. Due to wars and political instability the Asian region which is a big market for western sellers, leads to losses for such multinationals.
overcome this crisis. But its impacts are evident in the European economies as well. It is also known as the recession of 2010. The stock exchange as well as bank sector is going through a decline. Investment has been reduced due to the unavailability of loans from the banks. On the other hand, banks fear the recovery of loans and hence are reducing the credit every month. The recession 2010 has been resembled by the experts with the Japanese recession of 1990’s when the real estate values of Japan fell drastically.