$1trillion Economic Deal

LONDON: World leaders agreed a trillion-dollar deal on Thursday to combat the deepest economic downturn since the Great Depression.


At a G20 summit, they also signed off on plans to commission blacklists of tax havens and tighten financial rules to bring hedge funds and credit rating agencies under closer supervision.

British prime minister said that the world has come together to fight against recession not with words but also with a plan... of course he was correct here were starting our war against the economic shut down.

The world share market saw a positive outcome, with the shares of United Kingdom was up by 5%, japan gained 4.4%, and even NASDAQ gained 4%. All these increase in world share markets shows us some positive out come form this huge problem what we are facing now.


A new one trillion dollar will be created to solve the problem of great recession. The funds will be created International Monetary Fund(IMF). This will include $250 billion IMF reserve fund called Special drawing rights.

The G20 has also come out with a supporting hand for trade,with its new $250 billion financial package, for the next 2 years. In order to bring world economy to a proper track G20 injected 1.1 trillion.

The group has also plan the increase the IMF funds up to $750 billion. That is the Group has planned increase $500 billion in IMF funds. Out of which all the nations can get some support from IMF for its improvement.

With all this happenings, we can surely come out this attack. German and France has come out saying that spending wont solve this problem, only a tight financial norm can solve this issue out.

Different cause for World's Problem!!!

We all know, now the world is meeting its old friend"Recession", there are lots of reasons given behind it by many experts. Some of its reason which we felt caused recession has been listed out as simple as it can be done.

Current recession has been caused by high oil prices inferred from a recent report by CIBC chief economist JEFF RUBIN

Recession took its victory under the lead of oil price. The rapid fluctuation in the oil market made the countries to have a sit back in its economic position. Well before the other nations entered the recession Japan and Euro zone rushed for it.

Oil price changes had a close effect in stock market too. The invest made by the investor had an adverse effect over it,which reduced the values of investments by 40%. The world's strongest economy, U.S withstood this to some extent in the beginning but not fully,the other nations which were depending could not bear the stock fall which made them feel the heat of recession.

The fundamental cause for this recession is the regulatory norms followed by U.S.for the past two decades U.S had a low inflation rate. Which resulted it to ignore the completely basic economic cycle. This was first visible to united states 20 months ago,when they were trying to control the excess liquidity in the market. Then came the fall in their real estate. Amazing fact is that the real estate fell as much as, an house can be purchased in California for Rs.98000 which had a same effect all over the world.

The next main cause for this economic problem is,the world so called strongest bank failed maintain its position and was judged insolvent,it was none other than "LEHMAN BROTHERS". Its unsound idea to purchase a asset worthing more than its reserve caused its great fall in the industry of banking.

What so ever the reason may be for the world's fall the one who suffers are the developing nations only. Lots and lots of people are being driven away from jobs and result is fall in the economic level of the nations. The only person who get good job even during this time of recession are charted accountants by the name of cost reduction every company is sending their employees out and have also freezed their recruitment. With the worst economy policy of the U.S. every nation depending on it is now facing a lot problems which they are not able to manage.