An economy which grows over a period of time tends to slow down the growth as a part of the normal economic cycle. An economy typically expands for 6-10 years and tends to go into a recession for about six months to 2 years.
A recession normally takes place when consumers lose confidence in the growth of the economy and spend less.
This leads to a decreased demand for goods and services, which in turn leads to a decrease in production, lay-offs and a sharp rise in unemployment.
Investors spend less as they fear stocks values will fall and thus stock markets fall on negative sentiment.
subprime affects
The defaults on sub-prime mortgages (homeloan defaults) have led to a major crisis in the US. Sub-prime is a high risk debt offered to people with poor credit worthiness or unstable incomes. Major banks have landed in trouble after people could not pay back loans.
The housing market soared on the back of easy availability of loans. The realty sector boomed but could not......

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Title: Us Recessiom
Approximate Word Count: 719
Approximate Pages: 3 (250 words per double-spaced page)

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1. Us Recessiom
   

   us recessiom. An economy which grows over a period of time tends to slow
   down the growth as a part of the normal economic cycle. ... ...