Of Course yes, The sub-prime crisis in the US has its own impact on Indian Indian economy as well. We have seen disaster at Dalal Street at Mumbai in the third week of January when the FII investors started taking funds back and created obsession to withdraw the money even in the small investors also. I am surprised How the PM and Finance minister both made statements that the recession in US will do nothing in Indian market. I think what happened in BSE Sensex was just a trailer and the complete movie is yet to be shown.

World's most developed country is facing the lowest GDP growth in five years. It could make deep impact on several countries including India too. The GDP growth in 2007 was near 2.2 per cent. The previous lowest rate was 1.6 per cent posted in 2002.

How can rest of the world have no impact of the recession in US in today's global world. The fears have started plaguing stock markets in all the bigger economies. It has caused worries among the top global business and political leaders. They even discussed to skip the impact of recession in US when gathered at Davos for the World Economic Forum.

When the US accounts for 21 per cent of the global economy, recession in US economy will have definitely its impact on global world particularly in those economies directly connected with bilateral trade.

Recession? The meaning of recession in US is like the best growth in several developing countries. The US economy is still growing, but it's not growing fast enough. Its just the matter of months.

Even the International Monetary Fund (IMF) has reduced its growth forecast for the world economy in 2008 just because of the recession going on in the US economy that accounts more than 20 percent of world economy. This is an unofficial confirmation that the US is heading towards economic slowdown.

Recession... people are talking about recession everywhere and majority of them have no idea what does recession mean. The usual definition of a recession is the negative growth in two successive quarters. However, the National Bureau for Economic Research, US has said it that any severe downturn can be termed as a recession. Did it happen in the US economy in recent past???

Haven't you missed something while defining the recession? When consumers start reducing their expenditure, when retail sellers confirm that sales are going down, when employers start believing in cost cutting and downsizing and investors indicate falling confidence. Isn't US facing such crisis?

Could? several other economies are already facing the impact of economic downfall in the US. Several stock markets across the world including GCC, Asian markets and Arab bourses have suffered major losses ranging between 10 to 15 per cent in just one week time.

Other countries should move fast to support the economic slowdown to prevent its economy from falling further because if it didn't stop right here. the whole globe will start feeling the heat of US recession in days. The European, Japanese and US central banks have already started taking necessary steps in this direction in order to restrict the collapse of the banking and financial structure in the US.

Yes the US economic recession can have an impact on the growth of the emerging economies, but in context to India, I don’t think we will suffer so much, given the lending policy that our banks follow, as the recession that has come about in the US is courtesy its indiscriminate lending. Yes, in the long run India may feel the pressure but until then, there is no doubt that US may have done enough to bring the damages to repair, that have been caused by the subprime crisis in the country.

The keys to stop the recession further are in the hands of Investors. The small-term and long-term investors should maintain and develop their investments in the respective stock markets without receiving any wrong signals from markets. they should continue the same at least for the next few months.

The recession in the US is the result of poor financial policies and political decisions taken by the Bush administration in past 2-3 years. The US market is no more a driving and decisive force of world economy and the focus is shifting in Asian markets.

Asia is the region that has showed the potential to become the centre of growth of global economy in coming days. This is just the beginning and the world has seen India's growth despite slowdown in US economy. Asian markets have been the global engine of growth since last 4-5 years. China alone accounted about 30 per cent of incremental global GDP in 2006. India, China, and Japan are making Asian market strongest enough. No impact of US recession...

Who says India and China will not be affected with US recession? Both Asian economic giants are highly integrated with the US economy. China is connected with US market through manufacturing exports and India through a diversified goods as well as services. You will see the impact on next two months if the recession continues in US.

US is the largest single importer from almost all the Asian markets. The exports to the countries in the same region exceed their export to the US market. This kind of trade provides intermediate inputs for export to the US. So, global impact of US recession is inevitable in these countries as well.

If the US economy will go into recession more in coming days, the regional domestic demand would definitely take a negative route. The rising crude oil price would add further problems in economies already facing the heat of US recession. Every country needs dollars and oil so who will be able to save themselves?

I fear the revival of 1930’s Great Depression.

Just look waht Stephen S Roach, chairman of Morgan Stanley Asia, said in a press conference. He warned that Asian markets including India will be hit hard due to a probable recession in the US this year. He said - "if US sneezes, Asia will catch a cold."

Sub-prime crisis in the US is a wake up call for central banks across the world to have policy changed.

Definitely it would cause problems everywhere because America is the biggest spender in the world. If Americans stop purchasing products, like cars to clothes, computers to gadgets, produced by world's big producers, every country would suffer and face the similar fate.

Who said here India won't face consequences of US economic recession. despite predicting 9 percent of GDP growth in the financial year 2008, Country's finance minister P Chidambaram has taken serious note of caution about the recession in the United states.

For India..Develoop an alternative market other than US, they have done yet at lower level, and you would save easily your economy from the recession in the US market. Africa might be one such market for you, particularly for the pharmaceutical industry of India. Creating other markets, reducing dependence on the US market would save Indian economy and it has potential do so.

Capitalists who see one billion of Indian population as potential market to sell consumer goods are big jokers. More than 250 million Indians officially live below the poverty line. It means they earn Rs 600 per month. their daily calorie intake is between 2,100 and 2,400. They spend more than 990 per cent of their income just on food. Expectations from them that they would buy luxurios items and manufactured goods is a cruel and obscene joke to those Indians and those who think like that are big jokers.

Journalists do not have a good reputation for predicting recessions anywhere in the world so stop predicting recessio nand its impact anywhere.

India’s GDP might go down by two per cent and it could fall from projected 9 per cent to 7 per cent if the recession in US continues in 2008.

Humanity has cried and wept in Congo in recent past across the eastern regions of the Democratic Republic of Congo. Soldiers, Renegade government military members and myriad militias gang-raped hundreds of women in this region. They raped made the victims sex slaves, maimed and mutilated women and girls of young age by attacking on their internal organs. They showed their brutality when forced women's relatives to rape them or forced the women to eat flesh of their killed relatives. It sounds so horrible but its happening in Congo.

As far as my view goes, problem in the US economy will hurt India but not from fundamentals. The reason of course is we have got strong fundamentals with us and constituent of basics are also very strong. The next logic that goes in favor of India is our growth is not export-market but domestic demand driven. On the other, as here is the we are under the impression of boom, the atmosphere of gloom will effect our sentiments but the US economic impact won’t be that much fluid.

For India..Develoop an alternative market other than US, they have done yet at lower level, and you would save easily your economy from the recession in the US market. Africa might be one such market for you, particularly for the pharmaceutical industry of India. Creating other markets, reducing dependence on the US market would save Indian economy and it has potential do so.

Who said here India won't face consequences of US economic recession. despite predicting 9 percent of GDP growth in the financial year 2008, Country's finance minister P Chidambaram has taken serious note of caution about the recession in the United states.

I think with the credit crunch the volatility will continue and it will have global effects. If you look at global equity market valuations, there are yet to come back on line with equilibrium. However, equity markets tend to overshoot if there are issues. So, there is certainly more to come and that will surely going to jolt the world order in a long run.

This is too early a perception for the recession. Recession is not a thing that can be decided in days or weeks for altogether. Even according to principle, we can’t say that there is recession until there is a steady decline of six months at least and its not even one month over yet. There are some fluctuations and Govt. has cut the interest rates by half a point, but this will not be a long
affair, and the market will be stable soon. Cutting interest rates is just step one and govt. has many weapons to combat a recession if we do find ourselves in trouble.

in order to make thing right in world markets there needs to be an immediate 3-4 year moratorium on mortgage interest rate increases and the Federal Reserve needs to hold the line on the prime rate, NOT lower it. this may seem a lenghty process but it will ultimately do the things right. What we need now is sanity, not rebates.

UK, Japan, Australia, Canada, Mexico, Argentina will be the worst victims of recession in US. There won't be any impact on India and China. These countries are the rising economic power and shifting the focus of global economy to asian markets.

The sub-prime crisis has hit hard the banking and real estate sectors in the US. The US Federal Bank reduced the US prime interest rate by 75 basis points. It went from 4.25 per cent to 3.5 per cent. It was the biggest single time reduction in 20 years - a clear indication of the threat US economy is facing at present.

The US president told US citizens - "There is nothing to fear but fear itself." He has anticipated that the Americans' own fear of a recession will be a self-fulfilling prophecy. They would themselves support the economy. Isn't it a Utopian thinking?

It will be no wonder when the US dollar will start going the Titanic way against the other currencies.

This is the right time for Bush and company to release billions of funds from US treasure for developmental projects in Afghanistan and Iraq. Has Bush the courage to do it?

As US reduces the interest rates, it could drive global capital away to other countries which offering higher rates of interest. It might result in appreciation of currencies across the globe and depreciation of the US dollar and imported goods in US would become costlier. The inflation, then will go up and would create another problem.

In the yesteryears problems in the US economy meant problems for the world economy. It is not the case now. Despite the fact that the US is the world's largest economy accounting for over 35% of all global GDP, it has not remained the world's sole driving economic force. There is the EU and the dynamic Asian markets are counterbalancing the US economy more than sufficiently. Asian markets are booming and growing at breakneck speed. In fact, it will be the Asian markets that will eventually bail out a sick US economy.

us is printing more dollars which is there main export. they can literaly print dollars and get out of debt. but iraq war and afghanistan is making them print more. this is effecting us economy.

doesnt seem possible to me. we already have passed out manufacturing and service industry to asia.

yes very bad thing. the top economists are warning about a global recession following a slump in global economy. we must not forget that the us is the main country.

The Bush administration spent so much money on useless wars. To make up the deficit it is printing more dollars. So there is a big crisis developing. The world is making the Euro its preferred currency. The focus is off the dollar now that is losing its hold in many developing countries as well as almost developed countries. To make matters worse, the EU is solely operating its business in Euros. So there is no place to hide and no place to run for the Americans. They have the biggest outside investment than any other country in the world, they have a big bill to settle as well.

Where would the money come from? Already off shoring manufacturing and services have hit the Americans hard. There are much lesser profitable jobs there. So the public is getting impatient as well. Bush has taken the Americans into a suicidal path. Printing more greenbacks is a solution, but a solution that is going to come back as a deadly problem for them as well. Should the Democrats win this presidential elections, they would inherit a large debt to the American people and to the world as well. I don't see a way out of this.

the hell with economy. create jobs and start the bus again. don't throw all your jobs to the yellows and the browns. it will solve all problems.

very gud. no money no war. peace in world. very very gud.

we are doomed. the world is doomed. we are out of our jobs. our country gives food and jobs to others but not us. let's see what happens.

Yes: US stock markets define world stock markets.
US economy means global economy.

No: Fed Bank cuts in interests rates didn't raise any hope in the US markets
World is not just riding on US piggyback.
Asian markets are defining growths and slumps in global economies.

21st cewntury is the time of global world where every country is well-connected with other countries. and when the question comes to the United States, how can one imagine that rising and bigger economies won't feel the heat of recession in US. this might be said as the extreme of optimism.

This is just a hype nothing else and investors in US do believe in country's economy, nothing to worry.

Don't worry Indians, The recession in the US economy is not new and the Indian economy is going great and showed better growth particularly in last six months. We Indians need not to worry, WHY?? I tell You, The recession in the US market would result in cost cutting and job deduction. The cost cutting would further increase the US companies on software working. And the more they depend on software, the more Indian software exporters get orders. And everyone knows that for India how important the software exports are. Apart from the software exports, Our fundamentals are strong (said by the PM Manmohan Singh himself) so, be cool and let the Americans taste the recession.

#Tyron from Australia, you kangaroos have developed some mental problem these days. You lost your cool when anybody starts talking about India. India isn't the same country you knew some 50 years ago. You should not bother about hw India feed our own poor people. India is feeding own citizens as well as countless numbers of multinational companies. Just ask your boss sitting in Bermingham palace that what is the reputaion of Tata in UK, you will get a little idea about rising India and another idea you already have received during the ongoing India-Australia cricket series in your own country..I am sorry for taking the discussion to different direction.

Suggesstions given by Lix is correct for India. Indian government should work hard to create new markets for establishing bilateral trade to escape from such conditions.

@ Salma...what about you own country Bangladesh, just talk about the impact of US recession in your country dear.

Global recession??????
Dream on! If globalization has made us an easy target of such incidents, it has also given us the power to avert them. Global economic order is not driven by the US alone. Yes a US recession it would affect other nations but not to an extent as rumor-mongers would have us believe.

People get real! US ain’t the driver of economic growth today. It’s the smaller economies which are feeding GDP growths around the world. US ain’t the daddy now. We’re all made of stars.

I would say to an extent the statement true but worldwide slump still doesn’t seem to be on the cards. IMF has predicted a smooth sailing, relatively at least, and I’d hope so. Yes the downtrend in US would invariably leave mark on other nations that feed off US imports but still most of the economies are driven by their internal demands.

@Pratyush
I wouldn’t draw such far-fetched results from the fall of stock markets alone. They were over valued in any case. At best the crash in indices shows that the fundamentals on which the stock market was operating currently weren’t quite strong. They were rising on a wave which is bound to give way sooner than later. That Chinese bourse is more than obvious bubble was recognized months ago and the downtrend proves nothing.

Smaller economies are feeding off each other these days. American consumers were feeding most of global demand and their withdrawal might affect the global demand but not to too great an extent. As a matter of fact the burgeoning middle class in these economies drive their demands and would see off and short-term slumps. So rest in peace!

Joseph Stiglitz says that the free-trade era has made us more capable of fending off any troubles with in any particular economy. The greater integration means that economies around the world would be able to resist any significant downward movement in their GDPs courtesy US slump. It is needless to say that the largest contributor to world’s GDP would indeed affect other economies as well but not to as large an extent that it would have, say a decade or two back. We have buffers to protect against sudden crashes.

No need to act like the sky’s coming down cause it isn’t. Worldwide recession is nowhere in sight. US demand was artificial – fueled by credit and not rise in incomes. This was bound to come to haunt them sooner than later. Serves them just right for being so short sighted and out of sync with reality. This is a period of introspection for consumers and the administration as well. Investing in long term social infrastructure rather than short term financial packages is the need of the hour.

Shut up people! I mean those on the right side i.e. the wrong side. Had U.S. consumers not been on a spending spree, you’d have eaten dust a long time ago. China would be nothing without our imports and India, thank us for your software-driven exports. Africa makes petty raw materials which feed our manufacturing sector. So you’d do well to shut up real quick unless you know what you’re talkin’ ‘bout.

Slide, slump, recession or whatever you may call it, the fact of the matter is that global ripples will be felt as a result of trouble in US. Cost cutting is not necessarily a good thing as people would like to believe (aka Julie). We’ve already witnessed how tricky international trade is. As soon as the dollar depreciates, the governments across the world get panicky. Their export position worsens and as a result manufacturing sectors feel the heat. Fall in the value of dollar is just an signal, think of what’d happen if the demand in the US goes down. 1935 may still see an encore!

Yes, yes and a million times yes. All you buffoons are smug thinking fundamentals (Bah!) of your respective economies are strong. Time for a reality check! Increasing per capita incomes, Sayonara!!!!!!! U.S. Rules…

Stock Market is as good an indicator of the faith people have in their economy as any other economic parameter. The hasty withdrawal of small-time investors from the stock markets in last few weeks strongly suggests that they do not see smooth sailing in near future. You know they are quite right.

Recession is inevitable at some point of time. It is fundamental of how trade cycles go about. There are periods of enhanced activity and then there are periods of reduced activity. What’s new in that?

People are sounding so paranoid about this recession thing. It isn’t like world will end you know. I mean the output doesn’t actually recede when recession is on. It’s just that GDP (Global) won’t grow at a pace that we have come to expect. 3 per cent or less is the grim forecast from IMF and things do look bleak. This will certainly push up the food and oil prices even more.

Due to the rapid increase in the unemployment rate, there is a significant growth slowdown in the major economic driving force in the world (the U.S.), the growth is surely going to be slow in the States, and because numerous countries are exporters to the US – there is certainly going to be an impact on their exports.