In my view, The recession is mainly because of communication channels like TV/Radio/News Paper/Internet. They showed the economic crisis through microscope to show it much bigger than the actual. They warned the people by saying, "The future might be more worst than now. Be prepared to face the situation".Well, Then the people started hiding their money. Where was the money flow? The real problem started from here.The people stopped believing in the banks, no more deposits, only withdrawals. The banks ran out of money. Generally, the industries relies on the banks to buy their resources and will return to the banks once they receive the returns on their investments.
Now, the banks were ran out of money. How can they give money to the industries. Less inflow of resources to the industries. Less out flow of goods from industries. Even lesser profits because, customers are not willing to buy due to recession. Even lesser productivity. This is how the recession happened.A small story to clear you about recession"
This story is about a man who once upon a time was selling Hotdogs by the roadside. He was illiterate, so he never read newspapers. He was hard of hearing, so he never listened to the radio. His eyes were weak, so he never watched television. But enthusiastically, he sold lots of hotdogs.He was smart enough to offer some attractive schemes to increase his sales. His sales and profit went up. He ordered more a more raw material and buns and sold more. He recruited more supporting staff to serve more customers. He started offering home deliveries. Eventually he got himself a bigger and better stove. As his business was growing, the son, who had recently graduated from college, joined his father.Then something strange happened.The son asked, "Dad, aren't you aware of the great recession that is coming our way?" The father replied, "No, but tell me about it." The son said, "The international situation is terrible. The domestic situation is even worse. We should be prepared for the coming bad times."The man thought that since his son had been to college, read the papers, listened to the radio and watched TV. He ought to know and his advice should not be taken lightly. So the next day onwards, the father cut down the his raw material order and buns, took down the colorful signboard, removed all the special schemes he was offering to the customers and was no longer as enthusiastic. He reduced his staff strength by giving layoffs. Very soon, fewer and fewer people bothered to stop at his Hotdog stand. And his sales started coming down rapidly and so did the profit. The father said to his son, "Son, you were right". "We are in the middle of a recession and crisis. I am glad you warned me ahead of time. "Moral of the Story: It's all in your MIND ! And we actually FUEL this recession much more than we think.