Return of the depression

The world today is  facing a calamity in the form of recession.The situation is similar to what happened in1929, what we know by the name 'Great Depression of 1929'.Back then, it happened due to heavy borrowal of funds by the European countries from US.This time it has happened due to sub-prime mortgage crisis.People in US heavily borrowed money for properties and were unable to repay the loans resulting into huge losses for the banks and investment firms some of which are bankrupt now.

The US government has given a bailout package of 750 billion $ in order to stabilise the economy.The unstability of dow-jones and nasdaq  however had a global impact causing the depreciation of worldwide stock markets' asset values.

MNC's have resorted to a policy of eliminating staff in order to cope up with the crisis.This has increased unemployment.We expect the situation to improve gradually.