GRAVE ECONOMIC CRISIS(How did it all start?)

Around the globe today, world banks are closing down, Industrial organizations are being shutdown and millions are losing jobs. People are being flooded into a state of desperation and fear. Where did this financial torment suddenly start from?
It all began when the newspapers flashed with the tragic news that the 4th largest investment bank in the US "LEHMANN BROTHERS" has been filed for bankruptcy. People from India who then had honorable jobs there have returned home.

Even though revenues (almost $7 trillion) had been flushed out in the US to bring up the financial sector, still it did little to improve the situation I guess. To improve the distribution of loans for student, credit card, auto and small business which had become hard to obtain, Fed had announced a package of $200 billion. But the downfall proved to be too big to be solved and the financial crisis is now taking its toll in the other countries as well. And India, even though it has been given repeated assurances of the strength of the economy, is no exception. The share market ‘sensex’ has nosed down to 8,500 points from the highest 21,000. The first 10 top giant industries have lost Rs 30,000 crores in a week's span from Nov 17-23, 2008.
The foreign Institutional Investors have withdrawn almost around Rs 45,000 crores resulting in the exchange value of Rs 50 or more against a dollar!! It is said that there are likely to be 25% to 30% job cuts in Iron, Cement, Construction, Real Estate, Aviation, It, BPO and Finance sectors. 60% of the IT, BPO sector dependent on America is in danger.

Well this shows the clear fact and we have to accept it. In the globalized world most national economies will collapse with America's downfall. No wonder if the situation becomes grave for India in the coming days... But lets all hope it doesn’t get too bad!! Hope all ends well...

-info source- SUCI(Socialist Unity Centre Of India)