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PRESENTATION ON :
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
I
M
P
A
C
T 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 ?
Recession 2001 Causes Presentation

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Recession 2001 Causes Presentation

  • 2. PRESENTED BY:  Aneri Dhanak.  Sadrani Yash.
  • 3. 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.
  • 4.  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.
  • 5. 9/11  Attack on twin towers low down the share market to 12%.  Its biggest loss since depression of 1930.  Impact
  • 6. 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
  • 7. I M P A C T Unemployment 3.9% (December 2000) to 4.9% (August 2001) to 6.3% (June 2003)
  • 8. QUESTIONS.  Which one of three reason had contributed the most in inviting recession?  Possible remedies ?  Contribution of 9/11 ?