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February 04 It is not the problem of Economy, it's the problem of the way we live.It all started last year around June 2008 ( or is it even earlier? ) when we in India heard that a few investment concerns failed, following their revelation of being sick beyond recovery. Sooner, we heard of bigger banks failing followed by credit crunches, cries of Help! Help! from the very financial institutions that once appeared to be greater than Himalayan Might. The markets were crumbling and the middle class investors losing their entire savings, the multi millionairres not losing much though, still had enoujh to complain and call for interventions from Gsovernment. The situation in American economy was seen spreading throughout the world where we saw with awe one economy after another succumbing to the pressures.
In just over nine months, it dawned on everyone thate ?
economy of most of the developed nations, if not all, were in dire straits, and needed an intervention unparalleled in the annals of past economic history of any nation.
President Obama promised revival of economy through greater investment in infrastructure, spending on building roads, spending much more on education, much more on ealth insurance for the have-nots who never had anything to access the bigger rising costs of medical benefits.
Discussion in the Congress is still on and on and on and on... A figure of ONE trillion is being talked out. Analysts in CNN discussing how big is this amount. Democrats and Republicans are seen negotiating negotiating, with all the sincerity in their wisdom to save America from the present gloom.
Will the pacakage save or not save? And if it saves also how far?
It may. But that is not our premise here.
The premise here is whether we are getting back to the situation which gave rise to all this pell mell.
And the situation that gave rise o to all this pell mell is the very greed in the minds of a few individuals who bought credit much more than what they can afford, and also another set of individuals who provided credit to those who cannot be expected to repay what they beorrowed.
Simply said, it was bad judgmen
The question is whether that was bad judgment or something more?
What is there in the system to check this malaldy?
If not, are we planning to build systems and procedures which could bring back sanity in the accodunting standards ?
The question is not how many dollars or millions of dollars the package would contain.
The real question is whether the lpackage will strive towards bring back public confidence in our financial system.
And if the rulers are successful in this, possibly , they would have done what they committed to the Nation and to the World.
God Bless them. |
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