Economic Recession in Bangladesh

* Economic niche of America and its spill everywhere effect over the world Reason of economic recession: The following are the causa for economic recession in U.S.A. * Liberalization: The policy of U.S.A govt. was to generate housing facility for apiece and every citizen. So federal official Reserve directs the some other institutions to disburse the loan. And the pecuniary institution had to go forth housing at a subsidized rate. This creates the non performing loan. * Sub- blooming mortgage: Sub- prime mortgage is a type of mortgage that is usually do out to borrowers with lower credit ratings. It is a unworthy signifier of mortgage which U.S.A govt. permits in its country. So the commercial-grade banks administration fluidness crises. * rifle to develop industrial sector: As each and everyone had abode so there was no dwell or no buyer, so the price of housing decreases and the commercial bank faces NPL and liquidity crises. This affect s the industrial sector as they occupy cash on daily basis. No new application had been funded .Moreover the existing industries had closed. * Employee Layoff: As the industrial development had been fallen down, so most of the industrial sector layoff their employees and creates economic recession in U.S.A. * Spillover effect Of U.S.A recession To meet the liquidity crises U.S.

A govt. applies for loans from European and tenderness eastward countries. These countries acknowledge it profitable to invest in the U.S.A frugality and make the loan application. But the commercial bank of these countries in addendum falls in liquidity crises. And! thus the global financial market also falls. * Effect over Asia Bangladesh * Investments: Because the global financial market has fallen down because of investing in the U.S.A economy, so interest rates rises and lenders seek for relatively less fraudulent borrowers. As a result Bangladeshi business dislodge it harder to borrow. This in turn hurts investment. * Exports: Almost 90% of our export is targeted to U.S.A and EU.As their...If you hit the books to get a full essay, order it on our website: OrderCustomPaper.com

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