What exactly was the cause of Recession

The first recession I remember in my home country was in 1991. It was a happy time for me because I bought a house and had a wonderful job in the city. Property costs were low at that time and many people were losing their jobs. Some people had their house taken back by the mortgage company. I was so sad to get made redundant in 1993. I was difficult to find another job. So I let my house out, got a working holiday visa for Australia and went on my trip around the world. The recession this time around began in the USA. That affected currency exchange so bothered most countries in the world. In my home country there is much unemployment, many companies are going out of business, property prices have got lower and food prices have gone up. If the money situation gets better in the USA I think the recession will lift. I hope so.

The cause for recession is the banks in Us could not recover the amount given by them as loan. They when possessed the property did not recover that amount from them. Later the amount that is been withdrawn from the credit cards. This amount is also not recovered by the banks in this way the banks got bankrupt and then started recession. There is a greater hit for India in the software export sector. As the economy of Us slowed down the demand also went down. In this way India is been hit. But there is saying that Indian economy is growing at the rate of 6% per year. Let me know if wish to know more details.