http://www.thehindubusinessline.com/2008/01/11/stories/2008011150340800.htm
Interesting case built-up by Gurumurthy on the origins and processes behind the sub-prime crisis and debt economy of the US. You can disagree with him - but the guy is not a dimwitted innumerate like the Indian media.
I don't know if I believe it all ( I suspect Gurumurthy himself may have savings in stocks), but this is certainly a very good indictment of the Alan Greenspan regime. Gurumurthy thinks that the sub-prime crisis has been baking for the last 20 years - the dish is only now just done.
America consumption and indebtedness are at record levels - and the Fed (which in spite of it's name is actually not a federal government entity) is to blame - also to blame is the flooding of the real estate market with repackaged debt
2 comments:
To understand this subject better, I suggest you read "The Grip of Death: A Study of Modern Money, Debt Slavery and Destructive Economics" by Michael Rowbotham.
Gurumurthy has some points right, but the lack of savings by Americans is not due to the design of corporations. When the interest rates were high in the late 90s, Americans were still big spenders and saved very little of their earnings.
The fundamentals of the US economy are stronger than those of most countries including India.
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