Financial crisis happened not only this year it has been occurring in the past and fortunately we have been overcoming it. Crisis occurs after the long time of economic growth, high employment and high activity. Before the crisis took place the economic activity is very high but it begins to decline during the last quarter of 2007. Stocks has reached its highest trading with a record high of 300% but it also beginning to decline in the end of 2007. The real estate properties also reached its highest prizes and the companies profit has increased as shown in the increase of investments but this was also interrupted. The number of individuals engaged in lending has increased because of the increasing number of borrowers. According to experts the crisis has been developing slowly. At the end of 2007 big companies are closing down and some are making some strategy in order to save their business.
Some companies are having problem paying their loans and reduce their investment and began selling their assets. Some people also realize that they have a too great debt to handle with their private income. Others sell off properties just to pay their loans. During the crisis the company are producing less order, and they don’t have a choice but to reduce their manpower and retain only those who they really need. The numbers of people unemployed are increasing during this time. It may reach its record high this year. The companies are earning less and the stock market values are declining. The property prizes are also declining by 30%. These are only some of the signs that a country is suffering from financial crisis. USA is among the first nation that declared that they are under recession. Some developing countries and even the giant countries are also declaring that they are on recession. Experts believe that this will last until the middle of 2010 not unless the leaders have a better idea to solve this.
