The month September is not an auspicious month for
America, the 9/11 and the 9/15 are two dates which noAmerican
will afford to forget. The first being the first butworst ever
terrorist attack on America in which two planeshit WTC and
Pentagon, allegedly by Al-Qaeda, the terroristorganisation headed
by Osama bin laden. It shook Americanpsyche as well as society
which hitherto un-pained due tosuch terror attack. The latter date
9/15 was not less lethalthan the former in terms of extent of
damages done toAmerican economy and society. It was the day on
whichAmericas one of the biggest investment bank, LehmanBrothers,
collapsed and triggered a chain reaction ofeconomic, financial and
psychological crisis which very soonengulfed the entire globe. This
is exactly what we calledGlobal Financial Crisis or GFC. September,
the 2008 was trulya black month for America as continuously
plummeting
home prices after the housing bubble, which is believed tohave
been created artificially by American financial system,reached its
peak in this month and hit mortgaged backedsecurities (MBS). This
affect also spread to insured MBSagainst defaults called CDSs.
George Bush, the then Presidentof USA, tried hard to save the
situation but could notsucceed. Ultimately on 7 th September, 2008,
Fannie Mae andFreddie Mac, the two largest mortgage companies, had
to benationalised. These steps too could not save the situation
and
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TRIBUTE TO GFC- every anniversary is marked bypaying tributes,
therefore this anniversary would alsorequire paying some tributes.
The controlled growth
blended with financial freedom and regulation would benew
mantras of the new global financial order. Theexcessive pace of
growth is risked with overheating ofgrowth engine which in turn
jeopardise the entire systemitself. India could withstand this
onslaught due thismantra. Chinese too could hook this googly due
to
application of this very philosophy otherwise both
thesecountries would have been capsized in this financialtsunami.
The tribute would therefore be to socialise theprofits and growth
because no oasis can survive in thesprawling deserts. Eat and let
others eat; live and letothers live, though an old India saying,
still is milliondollar sermon. Together weswim separated we
sink.
