Economic Recession in Bangladesh

* Economic fadeout 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 caparison facility for for each one and every citizen. So federal official Reserve directs the other(a) 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- primary mortgage: Sub- prime mortgage is a type of mortgage that is usually do out to borrowers with lower credit ratings. It is a unworthy pattern of mortgage which U.S.A govt. permits in its country. So the commercial-grade banks administration liquidness crises. * sound to develop industrial sector: As each and everyone had mansion house so there was no dwell or no buyer, so the price of housing decreases and the commercial bank faces NPL and liquidity cris es. This affects 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 eastmost countries. These countries acknowledge it profitable to invest in the U.S.A frugality and call for the loan application. But the commercial bank of these countries in summation 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 defective borrowers. As a result Bangladeshi busine ss vex it harder to borrow. This in turn hu! rts investment. * Exports: Almost 90% of our export is targeted to U.S.A and EU.As their...If you impress to get a full essay, order it on our website: OrderCustomPaper.com

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