Monday, March 24, 2008

Business Cycles

Recession is a part and parcle of business cycles and unavoidable. What the Governments and businesses should be worried about, is the length of recession. How long will this phase continue and what's the solution?
BusinessWorld outlined the following three solutions in its issue dated March 24th for saving the US economy, which has inturn has its effects on the Global Economy:
1. The Federal Reserve floods the Financial System with Liquidity
2. The Federal Govt bails out homeowners
3. The Federal Govt bails out lenders
If the India's UPA Govt. was in charge of US too, they would have used all the above three options as it is an election year. Without battling an eyelid, the Govt in India has written off loans to Farmers worth USD 15 Billion. Maybe the US needs to outsource running its economy also to India.

George Monbiot, a columnist with the Guardian has an interesting take on recession. Read his article, "Bring on the Recession" at http://www.monbiot.com/archives/2000/06/09/about-george-monbiot/

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