In 2008-2009 much of the industrial world entered into a recession, the late 2000s recession, sparked by a '1r.:::1cia1 crisis that had its origins in the reckless lending practices involving the origination and distribution of mortgage rl~bt in the United St>!es. Sub-prime loans in 2007 exvosed other risky loans and over-inflated asset prices. With the losses mounting, panic developed in inter-bank lending. Precarious financial situation was made difficult by a sharp increase in oiJ and food prices. The exorbitant rise in asset prices and associated boom in economic demand is considered as a result of the extended period of easily available credit, inadequate regulation and oversight or increasing in equity. (Report business daily) As shares and housing prices declined many large and well established investment and commercial banks in the United States and Europe scuffed huge losses and even faced bankruptcy, resulting in massive public financial assistance Global recession has resulted in a sharp drop in international trade, rising unemployment and slumping commodity pnces. In 2008, the NBER declared that the U.S has been m recess;on since December 2007~ .:md sever:ll economists expressed the1r concern that there IS no end mstght for the downturn and recovery may not appear until as late as 20 II. The recession is considered the worse since the Great Depression of the 1930's.M:my world's developing economies are being drugged down by the turmoil on the U.S financial markets. (Report business daily) R,:c~ssion also defined 3S conuaction is a period of time during which the rate of gro"~.vih of busmess activity is consistenily iess than its iong-term or its negative it aiso a downturn in level
