User talk:Kemengr

Kemengr 08:00, 29 January 2009 (UTC) Economic Recession

I am not an economist but as I understand, recession in 2008-09 is basically due to software industry where value was being added without any real wealth creation. The value addition was reflected in high salaries leading to huge borrowings, high lifestyles and thereby unnecessary expenditure on entertainment. The speed and high jump in software industry recruitments led to massive offers for home loans, car loans etc. which suddenly boosted the real estate values to the summit.

The only way as I see is start from the beginning - low interest rates for business, lower tax rates to individuals, cut down on car and home loans, high tax on entertainments, fuel rationing, simple lifestyles, thrust on small savings etc.

http://en.wikipedia.org/wiki/Recession

kemengr 08:04, 29 January 2009 (UTC)