0 GLOBAL RECESSION

Κυριακή, 16 Μαΐου 2010


SOURCE:wikipedia

The late-2000s recession (or sometimes the Great Recession) is an economic recession that began in the United States in December 2007 (and with much greater intensity since September 2008, according to the National Bureau of Economic Research). It spread to much of the industrialized world, and has caused a pronounced deceleration [1] of economic activity. This global recession has been taking place in an economic environment characterized by various imbalances and was sparked [2] by the outbreak [3] of the financial crisis of 2007–2010.
Although the late-2000s recession has at times been referred to as "the Great Recession," this same phrase has been used to refer to every recession of the several preceding decades. In July 2009, it was announced that a growing number of economists believed that the recession may have ended.
The financial crisis has been linked to reckless [4] and unsustainable [5] lending practices compounded by [6] government intervention [7] and the growing trend of securitization of real estate mortgages [8] in the United States. The US mortgage-backed securities, which had risks that were hard to assess, were marketed around the world. A more broad based credit boom [9] fed a global speculative bubble [10] in real estate and equities [11], which served to reinforce [12] the risky lending practices. The precarious [13] financial situation was made more difficult by a sharp increase in oil and food prices. The emergence [14] of Sub-prime loan losses in 2007 began the crisis and exposed other risky loans and over-inflated asset prices [15]. With loan losses mounting [16] and the fall of Lehman Brothers on September 15, 2008, a major panic broke out on the inter-bank loan market. As share and housing prices declined many large and well established investment and commercial banks in the United States and Europe suffered huge losses and even faced bankruptcy, resulting in massive public financial assistance. A global recession has resulted in a sharp drop in international trade, rising unemployment and slumping commodity prices. [17] In December 2008, the National Bureau of Economic Research (NBER) declared that the United States had been in recession since December 2007. Several economists have predicted that recovery may not appear until 2011 and that the recession will be the worst since the Great Depression of the 1930s. The conditions leading up to the crisis, characterised by an exorbitant [18] rise in asset prices and associated boom in economic demand, are considered a result of the extended period of easily available credit, inadequate regulation and oversight, or increasing inequality.
The recession has renewed interest in Keynesian economic ideas on how to combat recessionary conditions. Fiscal and monetary policies[ 19] have been significantly eased to stem [20] the recession and financial risks. Economists advice that the stimulus [21] should be withdrawn as soon as the economies recover enough to "chart a path to sustainable growth".[22]

DEFINITIONS [match the definitions to the words]
a.not reasonable
b.increasing
c.sudden appearance
d.not thinking about the negative effects of one's actions
e.stop sth from spreading or increasing especially sth bad
f.motivation
g.prices of goods reducing to much lower level
h.bank loans for purchase of houses and property
i.make sth stronger,enhance
j.set the foundations for stable development
k.shares that can be bought and sold on a stock market
l.not safe,likely to change or become dangerous
m.sets of plans agreed by a government concerning economy and currency affairs
n.involvement
o.slowing down
p.success,popularity
q.not able to continue at the same rate or level
r.a situation where business is done in order to make a big profit,but with a high risk that money will be lost
s.made worse
t.the sudden start
u.property prices which are much higher than they should be
v.trigger


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