Rescession in US ecomony

Category: Articles/Opinion
Written by: Talha Ekram (on April 11, 2008 - 09:45 AM)

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As the Oil prices are at their all time high, people in the United States are also focusing on cutting off their extravagant expenses, which is leading towards the decrease in production.

There has been inflation worldwide for the past couple of months. It is likely that a recession will also hit in Pakistan, Australia, the UK and all other markets heavily influenced by the US

Free trade theory never intended for economies to be in permanent trade disequilibrium.

 The US experience of a worsening disequilibrium over a quarter century is outside the bounds of trade theory.

BBC: It said that Friday's employment report, which sent shares tumbling worldwide, confirmed that the US is in the first month of a recession.

US banks have reported losses of tens of billions of dollars after offering loans that were not repaid. 

The crisis has also affected international lenders who bought into or offered loans in the US and contributed to bouts of chaos on international financial markets.

More than 50% of the US giant companies are cutting off their jobs in US and outsourcing to elsewhere.

Meanwhile, US phone giant AT&T said it was now disconnecting a growing number of home phone and broadband customers for failing to pay their bills.

Sources:
1. http://digg.com/business_finance/Deep_recession_feared_in_U_S
2. http://news.bbc.co.uk/2/hi/business/7176255.stm

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