I was worried.
I was worried very deeply when this financial crisis hit. Not just because lot of us lost truckloads of money in stocks or real estate investments; not just because lot of us may find ourselves deprived of comforts that we otherwise would have enjoyed; certainly not just because lot may go unemployed..
But I was worried because this financial mess might just be one another passing phase where the so called dark side and socialists shout for reforms and the rest of free market capitalists waiting for their time to go back to bad old ways. I was worried that we might never actually work and implement some of the financial reforms that will keep more checks and balances in the systems. I was worried that we might never get to action-ize what Paul Krugman, Joseph Stiglitz and Prof. Jeff Sachs have been talking about for a very long time.
But now I am not that worried. If the latest IMF report released today were to be believed, looks like the financial mess will stay for quite some time in spite of coordinated actions by bankers and governments. And that the world will witness just 0.5% growth - the lowest since Second World War. Don't mistake me as a sadist - I am very depressed about all this just the way you are. But I see this as an opportunity to learn tough lessons; to put into reality some of the measures that the Keynesians have been cribbing for quite some time; to put checks against financial institutions that go on a spree unchecked; to persuade development institutions who blackmail cutting of loans/funds unless there is free & open market without thinking through the consequences.; to work towards reducing growth gaps.
This is the best opportunity we have to work on financial reforms. If we dont use it, we have only all of us to blame in less than a decade again for similar situations.
I was worried very deeply when this financial crisis hit. Not just because lot of us lost truckloads of money in stocks or real estate investments; not just because lot of us may find ourselves deprived of comforts that we otherwise would have enjoyed; certainly not just because lot may go unemployed..
But I was worried because this financial mess might just be one another passing phase where the so called dark side and socialists shout for reforms and the rest of free market capitalists waiting for their time to go back to bad old ways. I was worried that we might never actually work and implement some of the financial reforms that will keep more checks and balances in the systems. I was worried that we might never get to action-ize what Paul Krugman, Joseph Stiglitz and Prof. Jeff Sachs have been talking about for a very long time.
But now I am not that worried. If the latest IMF report released today were to be believed, looks like the financial mess will stay for quite some time in spite of coordinated actions by bankers and governments. And that the world will witness just 0.5% growth - the lowest since Second World War. Don't mistake me as a sadist - I am very depressed about all this just the way you are. But I see this as an opportunity to learn tough lessons; to put into reality some of the measures that the Keynesians have been cribbing for quite some time; to put checks against financial institutions that go on a spree unchecked; to persuade development institutions who blackmail cutting of loans/funds unless there is free & open market without thinking through the consequences.; to work towards reducing growth gaps.
This is the best opportunity we have to work on financial reforms. If we dont use it, we have only all of us to blame in less than a decade again for similar situations.
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1 comment:
It is an eye opener for everyone including the common man. The common man should always think before spending money and understand the importance of savings. Only buy/do what you can afford, stay within the means.
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