There is a contraction in the business cycle and a general slowdown in the economic activity at various parts of the world specifically in Europe spreading at a higher speed!! There is a panic, drop in spending, few taking advantage of the situation and play around with spread betting in the money & stock markets leading to higher volatility in the currency and stock prices, Euro hitting low everyday that impacts the FII's from the European region to invest in the developing world because they get less conversion for more Euros, corporates re-defining their IT spends and so on- Is this what we call it a recession??
Well, to me it appears as a gradual change in the behavioral patterns of the human beings who are otherwise called as Consumers! Technological advancement in the communications field could be one of the reasons which enables consumers in all corners of the world to know about the problem in other region and they start panicking and stop spending (Panic and Drop spending are the two important behavioral change). After a brief period of time, there comes a recovery because the leaders of the world along with the leading economists take the so called corrective actions that mitigates the panic among the general public thereby increase the spending.
There is no conclusion or solution to such problems, economy will continue to contract and expand which is very healthy change that will enable people to be more pro-active, otherwise we will all be affected by the complacency factor!! It's a wonderful world after all and we should experience every facets of life to make our journey really exciting!!
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