This is my second successive post about the Financial and economic crisis that is supposedly engulfing the world. And I have quite surprised myself. I have been driven up the wall by all the Financial doomsday scenarios being floated around. The final conclusion of all debates and discussions on television ultimately end at one conclusion- that we will all run out of money, and will have to kill ourselves. Well, I don’t think so.
If some people are to be believed, and then compared with the scenarios of the previous years, means we have been in an economic recession for the last 15 years, at least.
Ever since I have been able to articulate stuff in my head, I have heard a similar kind of ranting from people, particularly from one variety. The shopkeepers, wholesalers, small businesses, big businesses and large corporations, have, ever since I was born, been cribbing about the fact that the market is slo, they are not making any profits, and that the future is bleak. Same thing over the last 15 years? really? We should all have been living the jungles of Somalia by now, covered in premium priced leaves. Well, that would have given rise to communism. Hang on a minute, don’t we have that here already? Anyway, moving on.
I don’t believe that there is a grave economic crisis that we haven’t already faced before, if there is one right now. But for the present situation, I have two institutions to blame.
1. The Banks- These giant multinational Cash washing machines had been living out of their means for years. Trust me, if you spend more than you earn, you will be in the jungles of Somalia in no time, practising Communism. These organizations set up huge offices, full of people, who have no clue what the person next to them is doing. I suggest you all go to the nearest bank with some problem. It is my guarantee that at least 3 people will converge upon you and will try to solve your problem, without much success. Why do we need three people to solve what one person can do? All they do is read out the text from their computer. But all three draw their salaries. Multiply this in a multinational scenario. What a waste of money all around. Secondly, these banks had been paying with, and making us pay for money that did not exist. They gave out loans like a there was no tomorrow. People who were not credit worthy obviously defaulted. Hence, the bank, which had paid with non-existent money, was left with an even bigger negative margin on its account books. Still not learning the lesson, they gave out credit cards like leaflets at the enterance of a shopping mall. What really iritates me is the way by which banks deemed you worthy of a credit card. If you have an existing credit card (the more the better, they think), and managed to run up huge bills on it, they then believe you should have another one. And another. And another. I mean, if a person has a salary of Rs 1 Lac per month, and has a bill of Rs 60,000 on one credit card, how is he credit worthy for another card? Won’t he also spend the rest Rs 40,000 somewhere as well. Then he is left with zilch. He defaults. The recovery agents are called in, and the entertainment begins. Multiply all this by the number of banks operational, and the number of countries they operate in. It will all add up to a huge number, possibly with a lot of zeros towards the end, of sheer stupidity.
Who makes policies at these banks? What are the MBA’s being taught and fed these days? No wonder they are shutting down.
2. The Media- they really have nothing to do. They spend their nights reading a newspaper searching for story ideas, and end up the next day doing something completely un-intellectual. Probably they are reading the Times Of India. I would advice them to change the newspaper. For the media, everything is a crisis. Arushi murder case was a crisis of our social system, anytime a BMW has an accident the human survival is in crisis, anytime India loose a test match the entire form of test match cricket is in crisis. These days, someone has given them a calculator, and a few sheets of paper, and unfortunately for us, they have started playing with numbers. My God. Now every news channel is continuously harping on about the economy. Day and night. And day again. And Night again as well. It was heartening to see someone tell them to their faces, on live tv, what I had been saying for the last few days. Dr. Amit Mitra, last night on Headlines Today, tore into the channel for having no other news to show and thus unnecessarily shouting Economic crisis. Dr Mitra is a very learned man, and when he says this on live tv, to none other than Rahul Kanwal, is a sight to enjoy, for people like me. Dr Mitra also gave the example of the reduction in salaries, and the removal of about 15,000 SAIL employees lat month. Did you know about that? No. Because the news channels did not deem it fancy enough to show it. But they thought the pretty faces of the laid off Jet crew would be a nice sight on our tv channels. So they went on all day and night, being 24 hour channels, telling is in every sentence that we all will also loose our jobs, and will ultimately have to live in the jungles of Somalia.
Look, I fully sympathise with all the unfortunate people who have lost their jobs, but the point I am trying to make here is about the tv channels. It is indeed very shocking and sad that Jet would do something of this sort.
Even today, when I go to a shopping mall, I see the same number of people roaming the corridors of discounts and sales, as they were 3 months ago. I still find the same number of people walk out with shopping bags, as they were 3 months ago. There is still a shortage of parking in the markets across the city. Same number of people still throng the various markets for their shopping.
The news of markets being slow in terms of sales, and that your friendly neighbourhood shopkeeper is not making a profit, are all a bunch of lies. Like I had said earlier, it is trader tendency to label markets as slow and find the profits as less. So, I suggest you do not unnecessarily worry, because no amount will ever be enough for them.