Venue Bangalore India
Vhire4u.com conference room
Event: Group discussion for management trainee selection
Topic Global recession ..reasons and impact on India
Answers were interesting … i would like to share them with the web world
1. Osama ( she meant obama) does not want outsourcing to India
2. Obama wants to keep all jobs for black Americans
3. Banks in usa gave huge loans to India and china which they could not repay
4. Iraq war has driven usa bankrupt
5. Usa has printed lots of fake currency without gold standards causing inflation
6. American banks gave lot of loans to citizens without paperwork and they defaulted
7. America has no black money to support its white economy
8. China has caused usa bankruptcy to be a superpower
9. There were no rains in usa this year causing food shortage and inflation ( this one I liked the best)
10. People in usa take home loans but spend them else where on good food and clothes.
I can go on and on . Youth of today. They would browse the net for hours for all sorts of info. But young MBA’s had no clue . In the end i made an open offer . Anyone who answers “What is sub prime mortgage crisis?” gets a job right away.
126 answers …all wrong , weird and hilarious.
god help the world ..:)
Tags: bankruptcy, defaulters, economy, global recession, harjeet, harjeet kakkar, harjeetkakkar, inflation, loans, sub prime mortgage crisis, top ten, top ten reasons for global recession, vhire4u
HARJEET.VHIRE4U@ITS ALL IN THE MIND 
November 20, 2008 at 10:57 am |
It all began with the bankruptcy of Lehman Brothers, that was because of their monetary policies as they liberated it to a great extent. That directly affected the flow of money in the economy. It directly affected the market as many of the companies had their stakes in it.
As the company goes bankrupt, it failed to fulfill the liabilities, as a result other companies started cost cutting to recover the loss occurred, which resulted in the job loss of many employees……and the circle went on……..
I Think It This Way…..
November 22, 2008 at 7:31 pm |
Thanx bhuvan…yet there is much more to it than meets the eye. regards harjeet
November 28, 2008 at 1:12 pm |
The CEO of Lehman bro. didn’t hav good terms in the country. so when he was in trouble no one gave money to them. he was over confident.
December 5, 2008 at 6:58 am |
Actully what happened was US Economy was in boon in between 2001 to 2006 and the prices of the property reached its heights because of low intrest rates and when a saturation point came , the prices of the property began to fall then the owners had to face mortagage loan,which were higher than the value of the property. so in 2006 several companies had to shut down and this had a direct effect on the US stock market and here came the recession
December 5, 2008 at 7:31 am |
Subprime crisis happens because everyone thinks that the rate of properties will increase over time. The economy is not very simple as it used to be many years ago when the future can be predicted very easily. Since the housing rates are following the borrowers are not able to pay back the debt that they have recieved they faulter on the payment of loans.
December 5, 2008 at 9:13 am |
it would include many reasons but intially it started with the us banks.the recession has greater impact on the dependent countries.
December 5, 2008 at 9:38 am |
America is the big brother in economy. with because of bankrapcy and factors like social, political,and mainly economic condition in US made for this global recession.
but in India, has the own potentiality to regain by this recession because we are rich in resources.
December 5, 2008 at 12:26 pm |
that was a great hope from shidhu about India..
yup, india will surely bounce back but takes bit time..
it will be good if india try business with not only US but also from European companies..
December 8, 2008 at 4:04 am |
It was really interesting on that day group discussion.Nobody of us gave the right response .It started in housing sector of America.As the world economy depends upon the US economy so it effects the whole world.But we moved in a wrong direction.when the home prices started declining, the attractive investments in Subprime loans become risky and unprofitable.As the home prices started declining in the US, sub-prime borrowers found themselves in a messy situation. Their house prices were decreasing and the loan interest on these houses was soaring. As they could not manage a second mortgage on their home, it became very difficult for them to pay the higher interest rate. As a result many of them opted to default on their home loans and vacated the house. However, as the home prices were falling rapidly, the lending companies, which were hoping to sell them and recover the loan amount, found them in a situation where loan amount exceeded the total cost of the house. Eventually, there remained no option but to write off losses on these loans.
The problem got worsened as the Mortgage Backed Securities (MBS), which by that time had become parts of CDOs of giant investments banks of US & Europe, lost their value. Falling prices of CDOs dented banks’ investment portfolios and these losses destroyed banks’ capital. The complexity of these instruments and their wide spread to major International banks created a situation where no one was too sure either about how big these losses were or which banks had been hit the hardest and it affects the stock market and leads to global recession.
December 8, 2008 at 5:20 am |
I was also under the assumption that the world economy is to some extent depending on the US Economy. Since the housing loan repayments became difficult flow back to the prime source of banking sector, there arose the recession period. Since people are panic about their getting back of money for their houses, naturally they defaulted the bank loans. But I would appreciate if some one could inform me about the reduction in the crude oil and gold prices. Is this directly related to the US?? Better if someone could mail to my mail ID referred above. This is just to share some knowledge. Thanks
December 8, 2008 at 7:15 am |
I would like to express my view point here ,correct me if I am wrong. Indian economy is not in recession.Because of US recession what happened in India is only the liquidity crisis.Every sector is realising profit only….but still they are talking about layoffs…instead they can reduce price(in auto sector and real estate sector)…..which will help a lot.Every company is trying to utilise this condition to make super normal profit.
December 9, 2008 at 5:48 am |
India is facing heat on three grounds: (1) Our Share Markets are falling everyday, (2) Rupee is weakening against dollars and (3) Our banks are facing severe crash crunch resulting in shortage of liquidity in the market.
All the above three problems are interconnected and have their roots in the global crisis.
March 16, 2009 at 7:22 am |
the major reason i believe is the sub-prime crisis. people were not able to repay the loans back which they had borrowed against housing loans.
August 6, 2009 at 6:52 am |
* In usa everyone wanted to buy a house. So they had to borrow.
* Since everyone want a house, home price go up & up & up.
* Bank has a lot of money bacause 1990’s, 2000’s untill early 2007 was good time in the economy.
* China, ASEAN countreis, Middle East, India, Japan all put their saving in USA because it’s safe.
* USA federal reserve lowered it’s interest rate.
* Banks and investors wanted more profit compare to low tax rate in t-bills, so they went to the home buyer with their extra money.
* Home buyer took the loan at a higher rate as house price was high they though high interest rate was justifiable.
* Bank start to sell the “loan” to other investors who were eager to make more money out of buying and investing in loans.
* Bank was transfering it’s risk to others and they were happy to buy banks risk at high price.
*home buyer started thought home price will go up forever and remain high forever so they borrow against their home and start buying diamond, BMW, Carribean vacation.
*When bank start giving loan to bad guys who cant even have a job these bad guys stop paying loan.
* Bank wasn’t getting its money freom the bad guys so it took the bad guy’s home & try to sell it, now there was more house in supply than demand so house price fall.
i am in a hurry … it is the tym for load shedding in my locality….will write about it at some other time………( to be continued)
September 6, 2009 at 3:31 pm |
Come on people…..let us be pragmatic. I would like to make a bold statement. “What ever good or bad happens to us, we deserve it because, we earned it” period…. no arguments. So what should we do???
When something good happens, don’t get over excited. Just stay calm and beware of the bad waiting ahead. Keep working hard, take life as it comes and keep going.
When something bad happens, do a quick self analysis about what went (or what did you do) wrong. Everything in life is connected. Life is a result of an enormous chain of events linked together. When something bad happens, you should be able to find something that you did has resulted in bad. What you did may not have a direct link to your present situation but, 1000% this situation is a result of what you did in the past(may be very recent past). If you do proper retrospection, you will be able to find out your fault. Take an oath not to repeat it. Buckle up and leap forward. Life will embrace you with joy.
I do not believe in luck. It is non-existent. I believe in hard work, honesty(to one self) and integrity. The harder I work, the luckier I get. Luck or good things happening to you in life are results of your good deeds from the past. I challenge anyone who differ with these things. Starting this Monday, till Saturday, try to be very sincere, work honestly, keep away all the dirty things from your mind (like mental prostitution etc), try to be like like a saint for one week. Then see for yourself, you will have all the good things coming your way. I have a first hand experience with this. The moment you let any evil thought getting in to your mind, it will result in bad things the very next day or even the very next moment. I have reached such a state in life where I can explain or tell you what did I do that has resulted in anything good or bad happening to me any moment. I can even explain the cause of a small sprain or any physical or mental agony happening to me. I re-iterate, what ever good or bad happens to us, we deserve it as it is what we earned just like the wage we earn.
“Harjeet jee, I owe you a lot”.