ExpertDabbler

Now WaMu.

I guess a few people are kinda pissed off that I, sitting in India write about the banking crises in US.

I think I know not to confuse between events holding global repercussions and what is local to one particular country. I generally do not write about incidents like Virginia campus killings even when a Tamil Nadu professor was killed, or even this one, with the same generalization strokes as the banking crises. What I think is local is for the locals to write.

Global issues are like the way free markets should ideally be - free access to all. Almost anybody except probably Bernanke will have the same level of knowledge, thanks to YouTube and Google. I personally think the banking crises is almost the financial 9/11. It will have its impact on the whole world in some way. Some of the steps taken by the Bush administration cannot be seen as a mere Government’s response. They are revisiting the country’s entire economic philosophy during a time of crises without saying so, very similar to the way Manmohan Singh took some decisions in 1990-91. Only that the decision to nationalise AIG stands in stark contrast to the decision to privatize biggies in India. My two cents.

But America rocks in important things like this. This will never happen in India, not with the current crop of university heads who are busy minting money with their political connections. Like Sundar says, there are problems galore in US and India, only that the problems are different in nature and magnitude.

Update:
I might be seen as an idiot, but i do see some parallels between the US housing market and the Indian one. I personally know of a few individuals who are betting big in the real estate. Their total monthly EMI bills come close to Rs. One lakh — no exaggeration.
I guess things will look fine till the Indian economy maintains its 7% growth. It remains to be seen what happens when India Inc. slows down.

I guess Economics is called dismal science primarily because all of its doomsday scenarios turn out to be true, while the most optimistic scenarios does not.

This entry was posted on Friday, September 26th, 2008 at 7:50 am and is filed under Credit crises. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.