Recession as per dictionary means “the process of going back”. In the present-day economic situation “recession means reduction in the Gross Domestic Product of any country”. 

The process of recession started some time during the later stages of year 2008 in many parts of the world. In USA it started much earlier in the year 2001 with the announcing of bankruptcy by energy giant ENRON. In UK it started with the collapse of Northern Rock financial institute.

In many parts of Western Europe it started with the collapse of Iceland bank.  In India it started with the collapse of Satyam Incorporation. In Australia it started with selling of nearly 30% of shares in Rio Tinto mining company to Chinese Government.

In all the above situations there is one thing in common and outrightly visible. Lack of clear regulation over the spending and financial assets of these institutions.  Who are these regulatory authorties? The answers are not clear.

 Banks lend capital to these big organizations. When organizations are on the brink of failing banks borrow more capital from other banks and lend it to these organizations. Ultimately both banks and the organizations collapse due to irresponsible spending and corporate fraud.

Respective governments step in to save the banks. Big sums are handed over to the failing organizations and banks as rescue packages. The companies and banks continue their spending and businesses as usual using Government rescue deals. Where does the Government get all this money from? The answer is very clear. It is the tax money paid by the ordinary taxpayers.

There were many clear early warnings in each case mentioned above. There was  failure to recognise these warnings due to the voluntary ignorance on behalf of the regulatory authorities as they are all getting well paid and funded either by the banks trying to lend to each other without any regulation and Governments willing to offer rescue packages as if there is no other way out.

Why these organizations and banks should be rescued and why should the ordinary citizens be penalised. Because the system is so dependent on these corporate organizations that it fails to run itself in their absence.

The people who run these big organizations and banks are the ones indirectly dictating the functioning and policies of the present day governments in many of the industrialized nations. Will the ordinary citizen be able to have any say in these above matters related to rescue packages and Government stimulus deals? The answer for now is No

Maybe when the recession gets even worse and when we all go back further and further and when our National GDP drops to lowest possible then probably the common man will decide to say something or do something. Till then recession will just go on.