Causes for recession
I think recession was caused because of speculations not based on facts. For example - India has a population of say a 1000, so if we generate employment for 500 thru outsourcing, we get 500 customers for our product. Wrong! The 500 have a mind of their own! It is a market, it is not a guaranteed market! Projections based on such speculations, into which investors bought recklessly, without being realistic. Similarly, real estate was another area that saw investors buying mortgages. There is a demand supply curve. In the past, Japan did experience a long period of recession and real estate there did become something people didnt want to buy simply because it was too expensive. So why did we not learn from it? I think there is a cycle in real estate. Every 23 years or so, there is a boom time, and such recessionary conditions follow it. This time it seems magnified because we are now looking at it globally, and a lot of money has gone into the Afghan, Iraq wars. Those, I think would be the true reasons for the present recession. And there is no quick fix to this. 2010 will remain depressed, and part of 2011 as well, before some signs of improvement start appearing in horizon. It might be as late as Septermber or October of 2011 before we can truly say recession is behind us.