The economy might be edging toward a recession in the wake of mortgage-related credit woes plaguing the financial markets, bankers and analysts said on Monday. "I think that the risk of a recession is greater than people realize," James Dunne, chief executive of Sandler O'Neil & Partners, said at the Reuters Finance Summit in New York.
With home prices dropping, more people about to lose their homes due to unaffordable mortgages and sharply higher oil prices, the economy could be on the brink of slowing down, they said.
With home prices dropping, more people about to lose their homes due to unaffordable mortgages and sharply higher oil prices, the economy could be on the brink of slowing down, they said.
Stage two of the Business Cycle:
Prosperity-->Recession-->Depression-->Recovery, and is termed as a decline in a country's gross domestic product (GDP) for two or more consecutive quarters. One method of preventing a recession is for the Federal Reserve to lower rates thus allowing financial institutions to provide lower interest rates on loans, etc. This inturn would encourage more borrowing and spending.
Prosperity-->Recession-->Depression-->Recovery, and is termed as a decline in a country's gross domestic product (GDP) for two or more consecutive quarters. One method of preventing a recession is for the Federal Reserve to lower rates thus allowing financial institutions to provide lower interest rates on loans, etc. This inturn would encourage more borrowing and spending.
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