Comments:UK Prime Minister: The world will enter a recession

Though he is right, the economic prosperity that we've seen isn't going to continue like we've seen, I seriously doubt that we will see a serious depression, radicalization of workers and the such. PS; is it just me, or is every recession the result of stupid actions in the financial sector? --Danthemango (talk) 18:47, 22 October 2008 (UTC)

I take it Britain's just forgotten about Canada, then? --216.185.69.77 19:00, 22 October 2008 (UTC)
 * Assuming that you're talking about Brown's comments, he mentioned the world's two largest economies (the US and Japan), and he mentioned 3 of the important economies in his local region. There was no reason for him to go down the list and mention every half-way significant country in the world. He didn't mention Spain or Russia or China either. Gopher65talk 19:05, 22 October 2008 (UTC)

Ofcourse we're entering a recession. It's built INTO the monetary system. 121.214.183.9

Just Say the "R-WORD"!!!
According to wikipedia.org, a recession is a contraction phase of the business cycle; more broadly defined as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. ([]). With losses by Yahoo, GM, and other large companies, more jobs are being slashed. According to CBS News, "Right now we have nine million Americans out of work, that's up from six million this time last year, and to every trader on the floor, to every trader upstairs, that's the most important number" because consumer spending makes up two-thirds of the economy, said Alan Valdes, vice president of trading firm Hillard and Lyons. 

Yes we are in a recession, people. Now, let's pray we can get out of the mess that greed put us in.

--Dennis Melancon (talk) 13:24, 23 October 2008 (UTC)Dennis Melancon, Jr.

omfg well bad —Preceding unsigned comment added by 212.219.81.183 (talk) 13:25, 23 October 2008 (UTC)

Nothing changes for the underlying factual assets
== When the real-estate fall in US impacted the Lenders, which impacted via the complex debt based instruments, the mortgage houses and financial institutions. The insurance firms which had insured these instruments (without due risk assessment) also failed.

This lead to a liquidity crunch as investors (small and big) lost confidence in the system.

But at the end of the day, what impact does it have on the world economy:

The Great Nations: The large institutions will loose lot of money as investments need to be reallocated to low yielding but more secure funds. Common man will get lesser (or no) returns for their investments. This will last for another couple of years and will come to a lower, but stable state at last. This is because, these large economies have enough funds to peg and slow (cushion) the fall.

Developing Economies: Large enterprises which Rely on the companies of the greater world for their business will wee a down fall as the demand for their service and products fall. Companies which supply products for common men in the Great Nations will also slow down in growth as the demand from common man will go down for imported items as he will have lesser cash in hand for purchases for a few years. But, the common men in these economies will not have much impact (unless the respective governments choose to bail out the large enterprises with the tax money of the common man). This is because, they have very little exposure to international markets directly. Only some might have to switch jobs. This will in turn boost companies which service the local clients with more skilled labor being available.

Lower World: These countries will seek money from the greater nations for bailing out their banking systems and large enterprises. The Greater world will of course help, after making the lower world pledge their future to the greater world.

''Everything will at last stabilize with little higher inflation, little more profit to the large enterprises of greater nations on long term. More teeth to the international organizations to control international finance (supposedly to avoid a recurrence).''

''All of the above, because of some smart brain in US giving loans to beggars and paupers in the US. At last, the creator of the entire crisis, the defaulters of home loans in US, will get cheaper homes at everyone elses' cost.'' ==

Recession is inevitable, which will soon convert into depression.We already have global environmental issues on our head. Issues seem to only be piling up. —Preceding unsigned comment added by 123.252.230.28 (talk) 17:53, 24 October 2008 (UTC)