Saturday, September 20, 2008

Bailouts

Fortunately, I am not an economists to see gory implications of stock market falls. I am a businessman to understand that when you invest in something, you are taking an amount of risk. So you will end up with gaining some money or loosing some. Just like any other business, investing in stock market is a kind of a gamble, more like betting. You are betting on somebody else's judgement and integrity. Investment companies, in their greed or endevour to increase their profits multifold end up in increasing their risks too mutlifold. When winds are favorable everybody, promoters, inverstors and shareholders, reep benefits, touting as great judgements. But when winds turn unfavorable its labeled as natural calamity and government is called in to bail out.

Govts and investors and academia justify this as a necessary act to save the economy. But how did it happen, why was it allowed to happen is a question nobody wants to touch. When it was happening the academia, the intellegencia and commoners were happy counting their net worths.

Isnt it time we all act proactively ? !!!!!!!!!!!

1 comment:

Dr.RajRounds said...

Bailouts are not new to USA. Although current magnitude makes everyone dizzy and nervous. Read the following link about history of bailouts.
http://online.wsj.com/article/SB122186662036058787.html

Rajesh

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