2.Just above the above news I found another tiny column in which K.V.Kamath was requesting the Govt. to bail out Mutual funds and NBFCs. Mr.Kamath let us talk it out logically. I 've no mutual fund units in my name. So when you made profit, I had no benefit from it. The majority of Indians belong to my category. I've been paying tax since I was 22. Any bail out plan will be only from this money. This tax money belongs to millions and meant for the welfare of the millions and not for a handful. How many of our farmers benefited from the mad bull run? You were mentioning about saving economy. Is not this economy built on the premature death of an agrarian economy. We killed the agrarian economy, the farmers , our self -sufficient villages, our nature friendly life style, our Eco friendly farm practices and indigenous varieties of seeds for the greed of money. Who benefited the most when the scrips were trading in a highly over valued market? Has the recent real estate boom made housing more affordable to the lower and middle classes? When profits were private why is that a public ode is written on loss. What if this 'service economy' is given a quiet burial as we did to the agrarian economy? Come let's 'till' it out:))
Monday 3 November, 2008
Letters to the unknown - 3
1. Today I read in a leading 'Business ' Newspaper about the growth in bank loan. Guess the amount that was lent during last qtr....Rs.2lakh crore. What was it in the first Qtr? 46,666 crore, if this news paper is to be believed. Bankers have no clue about who maketh these borrowers.Then what all this hype that 'credit crunch' is made into?
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You are right about the tax payers' money being wasted on the bailouts for Mutual Funds and NBFCs. Not many tax payers in India directly participate in the equity market. But, if bail outs don't occur, would it be just the stock market investors who would suffer? Stock markets proxy the real economy and would not this lead to a fall in real estate prices leading to panic selling, defaulting on your house loan, banks suffering due to defaults, interest rate hikes and so on? I mean even if we have no business worrying whether the US bailout takes place or not, are we not dependant on that bail out to stir up local demand there and thereby maintain our exports and our jobs here?
I am not for a reckless bailout at all.. but I can't decide whether or not it should be done. It s not morally correct. But I guess somewhere it is just the story of the Prodigal son ! Isn't it?
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