..... international financial world has run out of control, and one integrates with it at one's peril. The gist of the problem is presented in a masterly book by someone who was at or near the heart of the action when it came to many of the crises of the past couple of decades. Richard Bookstaber's A Demon of our own Design: Markets, Hedge Funds and the Perils of Financial Innovation (Wiley) argues on the basis of wonderful real-life story-telling that the financial world's combination of growing complexity and incredible speed has made it inherently prone to crises. Why, the experts sitting in the biggest financial firms do not often understand what exactly their own divisions are doing, what the risks are, and how these could blow up in everybody's face. The long list of firms that have disappeared tells its own story: Barings, Salomon Brothers, Long Term Capital Markets, Bear Stearns%uF785
Remember that the original function of finance was to fuel the real economy. But financial markets have grown in size, speed and complexity, to the point where they have become the master, not the servant. Thus, financial profits account for over 40 per cent of all corporate profits in the United States, and the successful professionals in this world take home more by way of annual bonuses than even mid-size companies make in a year. That would be fine if we did not at the same time have to live through stock market crashes, currency crises, the collapse of debt markets, corporate bankruptci
So, it says that U wait for one or two harvesting seasons in the world over, have patience, let the supply side improve and demands automatiocally goes down to get the end result balanced.
Nice planted theory without understanding the ground realities. When population explodes and if that is not being checked along with economic boom, the inflation is unavoidable for countries like India where resources except Human are less! No water, deceleration of agriculture production, exorbitant real-estate prices, high interest rates, tightening of IT Outsourcing which is reducing demand, high taxation, very poor infrastructure, corrupt governance, slow decision making process...hurt Inidans.
Any success in India is inspite of Congress government and all problems are due to them. I dont see this can change unless a radical political outfit [Non-Congress, Non-CPM and non-Secular] rules this country for the next 25 years without any further election thamasha!
when the economic growth takes place we rejoice and take the credit of whole to ourselves but when it goes down we try to find an escape as in present case no authority would take the responsibility of a slowdown by shifting the responsibility to the other nation for a slowdown our prime minister is an able economist since the year 1991 when he was a finance minister and presently the prime minister is leading the nation through policy of economic transformation to open market economy when whole country depends upon him as a leader who would act as a light house to nation with variables of kinds he is aware of to be controlled and supported by people of india to overcome the crisis beginning since 1990
RE:RE:Do something for Indian Inflation
by anant narayanan narayanan on May 17, 2008 05:37 PM Permalink
Anyway BJP is going to get an absolute majority in Karnataka. This is for Sahadevan.
