In the world of economy and finance, the term (depression) is used to describe a sustained downturn in one or more national economies. Depression in Economy is the dramatic result of an ongoing recession.
Depression in economy is rare but sometimes is inevitable when recession persists.
A depression is known for an increase in unemployment, restriction of credit, lower investments, hyperinflation of products and services prices, major business bankruptcies, less trade and commerce across the world, in addition to currency value fluctuations and devaluations.
The first of its kind depression ever noted was during the 1930s when the GDP value declined of such magnitude in the United States of America.
Other noted Depressions across the world include the Long Depression which lasted for 23 years between the 1870s and 1890s.
With major banks in the United States failing and stocks going down at high rates, is the world on the verge of a new depression period? With the U.S. economy failing to respond to George Bush 700 billion dollar bail-out plan, is the world ready for a long period of depression?
The year of 2009 will reveal the reality of the situation as the new president of the United States heads for the white house with world heavy problems on his back.
The world is watching and waiting for salvation.
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