Abstract
We assume that prosperity is indivisible and that growth to be sustainable must be shared. We believe that the only sure foundation for a sustainable globalization and increasing prosperity for all, is an open economy based on market principles, effective regulation and stronger global institutions.' This statement reflects the commitment of leaders of major global financial powers to change the dominant ideology of ultra-liberalism. The subprime crisis is causing this general questioning in business operation. But first what is meant by crisis? The economic crisis is a sharp deterioration in economic conditions of a country or geographical area, the result of a mismatch between supply and demand, followed by a contraction of economic activity that opposes expansion. In 2006, the US was struck by an unprecedented housing crisis that saw millions of people homeless. Economic recession is a general slowdown in economic activity. The transition from a normal state to a situation of recession is done by an economic crisis. According to the economist Julius Shiskin, one of the effective means to determine a recession is to observe if the GDP growth decreases to consecutive two quarters or more. The recession is a contraction of the economy and not confined to one sector, it is visible in real income, production, employment, and other indicators. The national bureau of economic research (NBER) believes that domestic production and employment are the primary conceptual measures of economic activity.
