Saturday, March 28, 2009

Bail out??

The recent boost of US $ 1 Trillion has been accepted well by the Stock markets .But the same faces mixed reactions among the Scholars! Mr. Amal Dhru tries to simplify this already hyped up issue!!

So once again a bail out from the US Govt. for the troubled banks!!
The US Banking sector seems to be in greater troubles than what is perhaps admitted/known to us!!
The recent package, assures the banks that their bad advances will e taken over by some private agencies(of course funded by the treasury), so that the bankers can do and carry out their "business" denovo, without the burden of the past !!
The ultimate loanees of the old advances will be able to get some extra support, low interests, and easy repayments and will hopefully be benefited through the "revival" of the economy in Due Course of time!! So all will end well in Due Course of time!!
To me this sounds like a BIG DREAM of revival. It is indirect flushing in of additional Dollars into the economy, and an action of keeping the banking sector afloat, at any cost. Luring the people not to shy away from borrowing from the banks which are now re fed!! And boosting the banks to keep lending. Since the Big Brother will always bail you out as per this precedent!!
I think time will and it really has come for US to THINK about the causes (unending speculative tendencies and alarming apatite for Profits of the banking sector) and try to put them under some controls. This is an easy way out that they have preferred. It gives some time for the eventual financial disaster that is looming large. The next bail out package may be for the US Treasury itself (take it lightly, please, if you can!)!
But here is an opportunity for the Indian banks to attract genuine investors. The money is safer with our banks and are yielding better returns. Just put this message out loudly enough opportunities does not come more clearly than this. If we miss this chance, even our banks will be swayed by the forces of the already drowning "International Banking Sector".

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