An economic recession never happens by accident.
It is caused by numerous factors coming together like the allegorical "Butterfly Effect" that best explains the depths of Chaos Theory.
Little details do count as they can pile up and turn into big things that are too uncontrollable once they are allowed to grow on that scale.
Prevention is based on controlling the situation while the proverbial symptoms are still small.
The various factors of this economic tragedy are supporting characters to the main component that is inflation.
With our current money system, inflation is inevitable and interest is its hell spawn.
A lot of things can happen once these elements grow big like cancer tumors as people can't pay loans due to the nearly destitute situation and the higher rates of interest.
The banks can't get money fast enough and everything else tumbles down, like how investment companies not earning enough to pay off clients and other such situations.
With inflation devaluing the currency, prices of commodities rise, especially if oil gets more expensive.
In the event of economic recession, it is not just money that is at stake, but also the people's morale.
It changes the entire social atmosphere and affects how people go about with their own lives.
The cynicism that results from the sudden decline makes it even worse as recovery may be met with public skepticism as most would discount the chance of getting back up from such a nasty fall.
Understanding these details may help people cope when it strikes and perhaps even bring about both short and long term solutions.
Pessimism is a likely result of these things, but it must not bog things down even further.
Things definitely get hard for the government and the economists as a lot of pressure bears down on them as they try to resolve the situation.
Time does heal wounds, but that is quite a long time before things do quiet down.
In the meantime, the public gets restless and may do stupid things in order to alleviate their own suffering.
That may include stuff like mass withdrawals and panic buying that may upset the delicate balance of the local economy and cause significant troubles for banks.
Panic is the key word in this situation, which is never good in any situation.
Such pessimism must not persist in order to actually get the condition of stock markets to improve.
This is where necessary, but equally questionable things may happen courtesy of propaganda.
While it is good to keep spirits up with the use of mass media, it must be noted that lies and misinformation would only make things worse in the long run.
That is why a tight rein must be kept on the parties involved while still giving them enough liberties to do their jobs properly.
Perhaps through this vigilance, public confidence may be restored and help with the recovery.
It must be noted that economy is a subject that affects everyone, but is only understood by a few.
It is awareness to these issues that will lead to long term solutions.
Recessions are caused equally by both circumstance and devious actions of a few, so keeping panic and pessimism at bay should help us find the culprit as quickly as possible.
It is not just a systematic action, but also of social understanding and resilience that must persist in the end.
It is caused by numerous factors coming together like the allegorical "Butterfly Effect" that best explains the depths of Chaos Theory.
Little details do count as they can pile up and turn into big things that are too uncontrollable once they are allowed to grow on that scale.
Prevention is based on controlling the situation while the proverbial symptoms are still small.
The various factors of this economic tragedy are supporting characters to the main component that is inflation.
With our current money system, inflation is inevitable and interest is its hell spawn.
A lot of things can happen once these elements grow big like cancer tumors as people can't pay loans due to the nearly destitute situation and the higher rates of interest.
The banks can't get money fast enough and everything else tumbles down, like how investment companies not earning enough to pay off clients and other such situations.
With inflation devaluing the currency, prices of commodities rise, especially if oil gets more expensive.
In the event of economic recession, it is not just money that is at stake, but also the people's morale.
It changes the entire social atmosphere and affects how people go about with their own lives.
The cynicism that results from the sudden decline makes it even worse as recovery may be met with public skepticism as most would discount the chance of getting back up from such a nasty fall.
Understanding these details may help people cope when it strikes and perhaps even bring about both short and long term solutions.
Pessimism is a likely result of these things, but it must not bog things down even further.
Things definitely get hard for the government and the economists as a lot of pressure bears down on them as they try to resolve the situation.
Time does heal wounds, but that is quite a long time before things do quiet down.
In the meantime, the public gets restless and may do stupid things in order to alleviate their own suffering.
That may include stuff like mass withdrawals and panic buying that may upset the delicate balance of the local economy and cause significant troubles for banks.
Panic is the key word in this situation, which is never good in any situation.
Such pessimism must not persist in order to actually get the condition of stock markets to improve.
This is where necessary, but equally questionable things may happen courtesy of propaganda.
While it is good to keep spirits up with the use of mass media, it must be noted that lies and misinformation would only make things worse in the long run.
That is why a tight rein must be kept on the parties involved while still giving them enough liberties to do their jobs properly.
Perhaps through this vigilance, public confidence may be restored and help with the recovery.
It must be noted that economy is a subject that affects everyone, but is only understood by a few.
It is awareness to these issues that will lead to long term solutions.
Recessions are caused equally by both circumstance and devious actions of a few, so keeping panic and pessimism at bay should help us find the culprit as quickly as possible.
It is not just a systematic action, but also of social understanding and resilience that must persist in the end.