Hi folks,
This is my first blog.As almost all of you are aware of the financial crisis the world is going thru.
I've just tried to write sth on it with my golden pen.
If you're having a little trouble coping with what seems to be the complete unraveling of the world's financial system,
you needn't feel bad about yourself. It's horribly confusing, not to say terrifying;even people who keeps vigil on the
world market, has never seen anything like what's going on.Some of the smartest, savviest people — like the folks
running the world major financial institutions — find themselves reacting to problems rather than getting ahead
of them. It's terra incognita, a place no one expected to visit.
Every day brings another financial horror show, as if Stephen King were channeling Alan Greenspan to produce scary
stories full of negative numbers. While we're trying to get our heads around what amounts to the biggest debt transfer
since money was created, Lehman Brothers goes broke, and Merrill Lynch feels compelled to shack up with Bank of America
to avoid a similar fate.Then, having sworn off bailouts by letting Lehman fail and wiping out its shareholders, the
Treasury and the Fed reverse course for an $85 billion rescue of creditors and policyholders of American International
Group (AIG), a $1 trillion insurance company. Don't get scary if some more impregnable institutions may disappear or
be gobbled up in the coming time.
The scariest thing to average folk: one of the nation's biggest money-market mutual funds, the Reserve Primary,
announced that it's going to give investors less than 100 cent on each dollar invested because it got stuck with
Lehman securities it now considers worthless. If you can't trust your money fund, what can you trust?
There are two ways to look at this. There's Wall Street's way, which features theories and numbers and equations and
gobbledygook and, ultimately, rationalization.Then there's the right way, which involves asking the questions that
really matter: How did we get here? How do we get out of it? And what does all this mean for the average joe?
So take a deep breath and try to analyse how financial madness overtook not only Wall Street but also Main Street.
And why,in the end, almost all of us, collectively, are going to pay for the consequences.
cheers!
roshan.k
