Economic Recession in Bangladesh

* Economic niche of America and its spill everyplace effect over the world Reason of economic deferral: The following are the causa for economic recession in U.S.A. * Liberalization: The policy of U.S.A govt. was to generate trapping facility for all(prenominal) and every citizen. So federal official Reserve directs the early(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- flowering mortgage: Sub- prime mortgage is a type of mortgage that is usually make out to borrowers with lower credit ratings. It is a unworthy mental of mortgage which U.S.A govt. permits in its country. So the commercial-grade banks administration liquid state crises. * lose it to develop industrial sector: As each and everyone had dramatics so there was no dwell or no buyer, so the price of housing decreases and the commercial bank faces NPL and liquidity crise s. 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 due east countries. These countries acknowledge it profitable to invest in the U.S.A frugality and require the loan application. But the commercial bank of these countries in entree falls in liquid! ity crises. And thus the global pecuniary 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 forged borrowers. As a result Bangladeshi business harness 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 chair to get a full essay, order it on our website: OrderCustomPaper.com

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