Tuesday, October 21, 2008
Communal Aspects of Sub-Prime Meltdown
Ben Stein, in his blunt and plainspoken way, points out that ethnic reservation quota politics may have sewn the seeds of today's sub-prime disaster currently enveloping the world economy. Read Ben Stein's article.
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This reminds me of Janardhan Poojary and his "loan melas". Not only that but also the well known case of Indian Bank and its Chairman M. Gopalakrishnan. He brought the once flourishing bank into bankruptcy by his free grant of loans to 'needy' but incapable people.
Difference is that here the 'needy' included politicians, their chamchas and incompetent industrialists.
This is the Democrats' version of our loan melas. When home prices soared in India, the RBI acted and acted promptly. The Fed did not.
A Matter Of Economics
An Indian parallel in appeasement politics in the US
By R. Balashankar
The global financial crisis might largely be the outcome of the incompetence and greed of the private sector. Many experts in the US however blame the government for its mindless affirmative action at the root of the mortgage crisis. If it is true India is also fast slipping into a similar situation.
As in the US, in India too some of the actions of the government have all the potential to create a financial disaster. The Manmohan Singh government has crossed all permissible limits in budget deficit by its various poll-oriented populist schemes like loan waiver and subsidy. The real attack on the health of the financial system has come in the form of affirmative action with the pledge of giving minorities the “first right” in national resources. The sincerity of this statement is widely doubted. But the manner in which the government implemented it raised many eyebrows.
http://www.organiser.org/dynamic/modules.php?name=Content&pa=showpage&pid=259&page=4
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