Recession over for US?

I was reading this news and it seems to me like, is recession really over, especially for US? Checkout this news where few of top US banks are returning bailout money given to them by governement. and it is not less, they are returning a whooping $45 billion back while total bailout planned by governement was $700 billion.

Why? There could be many reasons but mainly it has been stated that it is to avoid restrictions posed by accepting this bailout money which could hamper their way of operating and is not a very good offer to them. Main restrictions to companies are limiting bonus and pay for their top employees and not to hire workers from outside US. While one will increase unsatisfaction in company, other will force a company to work in a less productive way with more cost.

Critical times ask for extreme measures and highly innovative environment for work. Putting a low money condition in it will hamper the work and insert a demotivation feeling among employees when they should be free to come up with brilliant ideas. These companies might be thinking that by accpeting bailout money, they will be forced to go on a conservative path which is always diverted from an innovation path. While they would be able to recover for sure, company who opt for it, might left out way behind in the race when economic situation is improved. In today's world of cut throat competition, lagging behind could mean closing down sooner or later. So why not keep doing the same and apply same formula which you are confident of getting result. Things have anyway improved from worst and confidence have built up. Sentiments of people have strengthened by many policies which was one of the main factor to keep pulling economy down for a country.

If requests from these banks are accepted, it will surely improve more sentiments and it clearly will be taken as a sign of strength. Do you also think same or of view that it is too early? Please share your thoughts -

US-China friction on Recession Policies

Recession is here and is confirmed by many economy experts. Now two world leaders, US and China, will try to do everything to save their country and minimize the impact on their country. But can they do it without crossing path of other side?

Obama have made a $850 billion plan to bail out US economy from this recession. From where this money will come? China is largest buyer of Treasury Securities, so surely US need to work with China for pulling this money out of US Treasury. Basically as China hold major US dollar, US will take loan from China for arranging this money.

And, Money doesn't come free, boviously it's money. China will like to have some advantage in terms of increasing its export to US and tax relaxation. But that would be just against US bailout plan. This move will actually go against stablizing it's doemstic market and current bailout plan might fire back if this is the case.

Making the situation worse, what could happen if China dumps its major Treasuries in US to arrange money for its own use? It is difficult for US to give a good return and so it makes sense to invest elsewhere where China could see a better advantage..may be a gonid down Us company??

US can't let it happen and would plan something to stop China from doing all this which won't make China happy. All this could create tension between two World Leader country and who knows, what it has in store for result... Keep watching..

Note: Let me know what you think on this topic. Please leave comment to discuss on this.