The issue raised by the author is sensible, but his analysis is confusing. The author does not offer any alternative model. As an NRI, I live in the USA, just for your information.
India has already followed US Model, and that is why India has grown economically during the last 15 years immenseley. Great depression or recession will surely come to India if every one in India tries to get into middle class, and many want to become billionaires and millionaires as evidenced by the current trend. Already real estate prices in big cities and stock markets in India are in bubbles and the bubbles will get even bigger as years go by. Some banks will fail as credit multiplies. Without credit growth, Indian economic growth will not happen. That is what they did in the USA- they expanded credit to expand middle class and to expand paper wealth.
Friends, the big financial crisis is coming to the USA and to the entire world, and to India in near future or therafter. It will be horrific! It is not the USA alone or Indian politicians alone who are responsible, it is the desires of millions of people in India and all over the world who want luxury every where, and want to get rich over night. Money does not grow on trees, but the credit is growing on trees, so when the credit trees fall, depression will come.
That is the root of all problems.
Buckle up, friends! The Great Depression or Recession is very likely come to India in 10-20 years or even earlier.
Get a break. We have been following US Model of Finance being the master for several centuries. First we did insider trading & sold off valuable assets to Moghuls, then to our own kings, then to brits & finally to politicians. When politics of a nation itself runs with an objective of financial gains for self, then we all know where the economy is heading. A look at last 2 years income disclosure of top 500 MP's in LokSabha will be good enuf to open our eyes. All of them are in Tens of Crores of rupees & some even hundreds of crores, despite earning less than 25kRs per month.
Excellent article. Soon or later U.S.A will became N.U.S.A like former U.S.S.R. Learn from their defeats, Failure, Recession, Bankrupcy, Depreciation of US $. Don't follow U.S Blindly.
An excellent article. I agree with him totally. In fact, by outsourcing key banking services, centralising selected operations, we are killing our banking system. We should stop and re-consider whether 'reform' means copying the US and other developed countries' practices blindly.
Well said. Do not follow if you want to be a leader.US Onbrink of Bankrupcy CAN NOT BE FOLLOWED AS THAT MODEL HAS PROVED TO BE WRONG. Indain P M and FM must device own model LIKE Formewr RBI GOVERNER Mr,Reddy.devided and sve India from crisis.
following blindly any system without seeing if it will benefit india will be a disaster.india has sucha diversified population in needs and habits that it is best to devise its own system by taking the best practises from both capitalist and socialist.what the author has rightly pointed out about distributive justice which can be brought from the best socialist practises.
ISLAMIC FINANCE is a better alternative to the present interest based capitalist model..coz Islamic finance doesn't allow speculative trading..is purely based on real assets and on profit sharing basis.Many countries in Europe and Asia is developing Islamic finance...its growing about 20 percent annually...India must start Islamic finance even Reliance is very much interested to start Islamic Bank...
Mr. Rajwade, what is the point you are trying to make? So, overall you remain convinced of the benefits of globalization. So what? Why should we all be bothered about your being convinced? Who the hell are you?
Re: What's the point of this article
by Sachin Purohit on Sep 30, 2009 07:16 PM
Its a shame that you could not get the point. The point is very clear. Capitalism needs to be saved from capitalists. In saying this, one need not be supportive to communism. This is precisely what the writer has said. He is not against capitalist model. But the rampant abuse of the system by a select few in Wall Street, aided and abetted by the policy makers who deregulated the system that the greed of those in Wall Street saw no bounds.
Despite this, our policy makers still have a tendency to blindly follow the US model. It is this tendency the writer is warning against. We just should not do it because US is doing it. We have to question the merits or demerits of implementing something. Is there any doubt in this?
Re: What's the point of this article
by Dhaval Madlani on Sep 30, 2009 07:12 PM
I think the point is treading the middle path. AV Rajwade is a leading forex expert and luminary in his own right
Re: Re: What's the point of this article
by Sachin Purohit on Sep 30, 2009 07:19 PM
Its great to know about his expertise in the field. But does the originator of the thread need to know about his qualifications. To me, so long as he makes sense, I don't mind even if he is non-matriculate or a college drop-out.
Re: What's the point of this article
by mallaiah anchoori on Sep 30, 2009 07:56 PM
I fully agree with you Muraldharan! The author is not clear as to what he wants to convey ultimately.He appears to be a confused & lost the track of the issue.There is no consistency in what he wishes to say.At least in case of the jugglering Chip Choper and Chope Chiper joke,some thing meaningful is conveyed though the words are quite confusing.May I repaet it for the benefit of my friends;it goes like this-There were two friends called Chip Choper & Chope Chiper.One day Chip Choper comes to the Chope Chiper & asks him to chip his chope & in turn, promises to chope his chip.What happenned finally was that neither Chipchoper came to Chope chipper & chipped the Chope of the Chope Chiper NOR Chope Chipiper came to Chip Choper and Choped the chip of the Chipchoper.A thoroughly confusing words,but they did make some meaning if one tries to read them patiently. The above article,however, leads to no conclusion however much one tries to understand it.
