World Leader

The whole world is reeling under economic downturn. The demand for goods and services has diminished, there are job loses and a grim future for millions of people all over the world. The major financial institutions are going under. But what caused this recession? What is the reason for this mess? Who is the major culprit of this economic upheaval?

I am not an economist nor do I have the capacity to understand this major problem of our world. But I regularly read the news papers, and they are the opinion forming media for me. And they tell me that Americans are very happy to borrow and spend, unlike Asians who generally earn and save. The conventional wisdom says, a nation or a man can not survive by borrowing over limit. Borrowing is referred as a thorn in the sides of man, hurting him always. He can find comfort only by removing this thorn, paying off his debt. This is the basic knowledge any person has. This is the knowledge handed down to man from generations. Then why did not the American’s understand this? Were they just reckless?

This recession also reminds us, how much the world depends on the American economy. If American economy goes into recession all the major countries of the world will have repercussions. All will be effected. America is the anchor for the world, to stabilise it economically.

Now, major economies of the world have come up with stimulus packages to revive their fortunes. Billions of dollars are given to the financial markets. But is this downturn only market driven? Almost all the stimulus is given to the financial institutions and poured into the Wall Street. I just wonder how effective it is. We have to just wait and see.

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Tags: downturn, Economy, Stimulus