What is recession?

What do you think about next recession (2011) in India?

• Some how we came out from previous recession ( ? ), but still the market is not recovered fully. Particularly IT sectors are slowly picked-up and the engineers getting into their job slowly. Here some bitter truths, we forgot our valuable lessons from the past recession and allowed hiking of prices in our whole Indian market like fuel price, real estate price, food price etc etc. From day-one we used to speak about VALUE FOR MONEY but not WORTH FOR MONEY / WORTH THE MONEY (ya, difference is there for the both !) for each and every thing. We used to think that "I need it and how to buy that?", but we never think that, "Does I really need it and is it worth for the money what I am going to pay?", always some common words we are using, 'land rates are increasing day by day, flats rates are increasing day by day, bank interest is going to increase soon, so better buy as soon as possible' ... and finally we our-self increased the cost of living as much as possible; simply we are giving our hard earned money to real-tors just like that and our govt is not going to take any action in this since politicians are involved in this business. Coming to the point, now the next recession is on the way. How we are going to face it? Just share your thoughts. (I may be misunderstand or missed something; you guys can bring it up..!)

• Answer:

  Yes, you are right. Indian government is not taking necessary actions to get money from public to spend it for the country and it is going to real estate people. Say one person's take home is 1L rupees. In that 30k he is paying to govt as tax. The remaining 60k to 65k, almost he is giving to real-tors in the name of his dream house. (Here the hidden truth is the real-tors are hiking the price as per his (public's) take home.) The govt should take severe action, it has to give a bang to this real-tors and set the cost of real estate within 25k to 30k and it should help that person to invest the remaining 25k to 30k for the country by giving some benefits or offers. Otherwise the cost of living will simply increase and the money will get locked into real-tors accounts that will cause again recession. But unfortunately here most of the politicians [can we say govt?] are involved in real estate business because of the huge bulk money, also our great sincere govt officers are doing their jobs by getting bribes from them. So definitely govt wont take any steps to reduce the real estate cost, also public are not unity as you said and finally one day due to recession it has to come down automatically. We have enough talent and hard work to make the money from outside country, but because of this bribing politicians and officers we could not come forward. This is the execration we got for our democracy country :(