What is Recession?

Replies

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  Jeffrey Arulraj

  the recessive period is one in which the value of money falls due to familiarty or over feeding any economy with monetary ip in any form that can pull down the economy itself
  
  
  here there is another portrayal also it is a period where there is surplus money but the value of it is very minimum when compared to non recessive periods
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  Kaustubh Katdare

  I'm no economic expert. But I've always believed that recession is a collective 'fear' that people have. First we hear there's a recession in the market and then we start saving. When we spend lesser, the prices of the goods fall down; which results into more people believing that there indeed is a recession and the overall money supply in the market is lesser. That leads to the cascading effect. The corporations use recession as a mechanism to get rid of the overheads in the name of cost cutting.
  
  But we humans can't just store money for long times. When a few months are passed, we tend to get into the markets and start buying; and then the economy gets back on track.
  
  Recession, I believe is just a state of mind of larger number of people all over the world.
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  Jeffrey Arulraj

  in reality it is a cycle driven as rightly said by the big k as fear
  
  but the fall in value of money is not only due to less spending but also due to excessive spending
• 

  Kaustubh Katdare

  jeffrey samuel

  in reality it is a cycle driven as rightly said by the big k as fear
  but the fall in value of money is not only due to less spending but also due to excessive spending

  Well, as I said;I'm no expert on Economy. I might be totally wrong. But I witnessed how the fear spread in 2008 and that lead to massive panic overall. It'd be interesting to know thoughts from people who're from the finance domain.
• 

  anuraadha

  jeffrey samuel

  the recessive period is one in which the value of money falls due to familiarty or over feeding any economy with monetary ip in any form that can pull down the economy itself
  
  
  here there is another portrayal also it is a period where there is surplus money but the value of it is very minimum when compared to non recessive periods

  But the in the IT recession, what was the value that became minimum? Is it like related to demand and supply of goods?
• 

  anuraadha

  The_Big_K

  I'm no economic expert. But I've always believed that recession is a collective 'fear' that people have. First we hear there's a recession in the market and then we start saving. When we spend lesser, the prices of the goods fall down; which results into more people believing that there indeed is a recession and the overall money supply in the market is lesser. That leads to the cascading effect. The corporations use recession as a mechanism to get rid of the overheads in the name of cost cutting.
  
  But we humans can't just store money for long times. When a few months are passed, we tend to get into the markets and start buying; and then the economy gets back on track.
  
  Recession, I believe is just a state of mind of larger number of people all over the world.

  Yes the fear! That is what I was searching for. Because one of my dad's friend started saying it is a recession period now and was happy to know that I had joined as soon as my college got over. So if that is the case, then all the areas would get affected right?
• 

  Jeffrey Arulraj

  anuraadha

  But the in the IT recession, what was the value that became minimum? Is it like related to demand and supply of goods?

  exactly a time where there is surplus production and very few markets to absorb the products produced
• 

  rk rao

  indian CHEAP LABORS, the so called software engineers will sit on BENCH
  
  
  and management will say to brush up your skills.
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  Jeffrey Arulraj

  rk rao

  indian CHEAP LABORS, the so called software engineers will sit on BENCH
  
  
  and management will say to brush up your skills.

  i find this abusive it is not really as in your post
• 

  rk rao

  jeffrey samuel

  i find this abusive it is not really as in your post

  
  it is a SARCASM
  
  don't worry