Saturday, March 1, 2008

Hypocrites???


Consider This:
There are these rich, greedy, supposedly intelligent investment bankers in United States. What did they do? They created complicated structured products which even the Mensa geniuses fail to comprehend. They set up an environment where well groomed - white collared officers loan to people who do not deserve get loans. These people default creating Non Performing Loans (NPLs) that produce a butterfly effect and take the entire credit market with it. The most smartest people cannot still figure out how much could be the bad loans/margin calls/write downs. Fed cut the interest rates at multiple instances. Govt lends billions of dollars of tax payers money. How do we react? We tear our shirts, thump the tables, laugh aloud and cheer the equity markets to new highs.
Now Consider This:
A very intelligent and soft spoken Indian Finance Minister, takes the pain to estimate the agricultural Non Performing Loans. These are neither 'Structured' nor hard sold. These are plain vanilla loans given to hard working souls that toil day in and day out to feed more than a billion inhabitants of this planet. How do we react? We scratch our heads, tear our shirts, beat the tables, cry out aloud and steer the equity markets to new lows.
So much for Hypocracy!

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