tirsdag 30. oktober 2012

The World Economic Crisis

                                                           Play BANKROTS


Since the 1930's, the world has not witnessed a financial recession of this magnitude. This is a crisis that has spilled the world over and there is no country that has not experienced its effects. This crisis has resulted in wide-spread devastation through out the world.It has drastically changed the lives of millions mostly in a negative way.
When trying to figure out the most affected regions in the world, there are two obvious continents that come to mind. These are North America mostly and Europe. This is where the most intense effects of the recession are being felt by the people and organizations of these continents.
Some of the countries affected most by the recession
The united Kingdom

The United kingdom has an employment rate of 8.4%. The country adapted measures
that included spending reductions and tax increases that later resulted in an even greater
depression, though they have managed to keep it relatively stable.

France
France has un employment rate of 9.9%. Having being considered one of the most
economically stable countries in the world for a long time, its debt level was recentlly
reduced from a perfect AAA to AA+.

Italy
Italy has an unemployment rate of 8.9%. Its is considered one of the most hardest hit
countries in Europe. The measures that have been adapted that include less spending
and increased tax, is actually being seen as counterproductive leading the country to an
even deeper depression.

The uniformity in effects in all recession-hit countries include the following;

 - Major job cuts from organizations leading to an increase in unemployment.
 - Depreciation of real estate value leading to huge losses
 - Lack of investing and saving
 - Banckruptcy of major and minor companies

Some govenments such as the US have been forced to bailout some of these
companies to enable theme continue with operations.
some of the well known companies to be bailed out include the US Bankcorp, Bear
Stearns and other major car companies that were deemed too important to fail.

The efforts to try and stabilize the world's economy are still on going and only time will
tell how well they work.

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