PRESENTATION ON :

OF 2001 (US Eonomy)

PRESENTED BY:

Aneri Dhanak. Sadrani Yash.

RECESSION OF 2001

The recession of 2001 was caused by irrational exuberance (joy enthusiasm ) in high tech. In 1999, there was a economic boom in

computer and software sales caused by the Y2K scare.

Many companies and individuals bought new computer systems to make sure their software was Y2K compliant.

It started with dot-com bubble in Stock.

All the investors invested in I.T. companies and they wanted to gain more so they invested in top rated companies. These resulted into the decrease in stock prices of small I.T. companies which spread the speculation of all I.T. companies going into the loss.

This further resulted into the downturn into the share prices of I.T. sector.

9/11

Attack on twin towers low down the share market to 12%.

Its biggest loss since depression of 1930.

Impact

SCANDALS

During these year many big organizations namely Enron and worldcom spread the fake news of their financial rates.

When these got revealed in public it gave a great shock to economy even the stocks of other reputed organizations experienced the shocks

IMPACT Unemployment 3.9% (December

2000) to 4.9% (August 2001) to 6.3% (June 2003)

QUESTIONS.

Which one of three reason had contributed the most in inviting recession?

Possible remedies ?

Contribution of 9/11 ?