Money Saving Tips

Thursday, May 27, 2010

Recession Causes and Stocks


The causes of recessions are crisis theory, financial crisis, currency crisis, overproduction, and underconsumption. I am not very sure what crisis theory is, but financial crisis is when a business or asset loses a lot of its value. A currency crisis is when a currency loses a lot of its value. Overproduction happens when a company produces too much of one product, so it can lose value (in terms of supply and demand, possibly expire, and become unusable. Underconsumption is when a buyers or customers in the entire nation don't buy enough of a certain single product, or just any product overall. This will cause a stop in the flow of money in the economy.

Dow +284.54/+2.85% 10,258.99
Nasdaq +81.80/+3.73% 2,277.68
S&P +35.11/+3.29% 1,103.06

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