The root cause of 1990 1991 recession was the gulf war which tool hold of the U S economy in late 1990 which was expected to be over soon. The gulf war caused lot of damages to the economy of western region since they all had to co-operate with the U S. The gulf war was activated by U S though it has nothing to do with their internal politics but just to take the greater advantage from the oil rich countries, the U S led the war mainly attacking on Iraq. According to many economists and insiders, the war was just a drama since U S always wanted to acquire the oil wealth of Iraq in order to save the petroleum products of their own. When the deal was converted into the compromise, the war was called off. As a matter of fact the economy of the U S was badly disturbed during 1987 but somehow it was not declared. After the gulf war, they found a chance to announce that the country is facing the symptoms of recession due to the gulf war and many manufacturing units were benefitted from this to shut down directly. Japan is after the U S economy since long time and they are interested to sabotage the development of the productivity. As such U S hardly manufacture anything except the destructive weapons and aircrafts etc. and to sell them off, they find some weak and developing countries and encourage them to fight with each other so that U S can sell their arms and ammunition to these countries and make money out of it. Economic conditions in the healthcare sector are just beginning to respond to a fall in gross national product when the rest of the economy turns around and begins to rise. Response to rapid growth during expansions is similarly delayed. The slow adjustment of the healthcare sector tends to average out changing economic forces over the preceding three to five years.

The current financial crisis has often been compared to the collapse of the junk bond market, savings and loan crisis and economic recession of 1990. Some economists have been saying that the current crisis may be worst then the recession 1991. There was a massive layoff on Wall Street and much anxiety about the stability of the banking system. The loans and savings were failing everywhere and people used to withdraw their deposits for the survival. The prices of real estate and property market slumped but media were heavily insisted not to declare all these information and the majority people in the world are not aware of the actual fact. The strong signs of recession started to appear during July 1990 and stock suffered steep declines during August and September 1990. They nosedived during October which turned out to be the low point of the recession and then recovered a bit by the end of the month. The fluctuation continued till 1991 throughout and the stability was not observed in the stock market since.