The Financial Crisis!!!

Well well , i wonder the if the world would completely lose its financial stability because of these regular bear-party going on in the stock markets around the world.

In this post i am discussing issues related to the financial freedom we Indians are enjoying at present and how that is going to reflect on our economy a decade later.Because that is just what is happening in America now.Many of you might not have understood what i meant but over this post it will make sense to you,am sure,just read on.

Recently when i was riding my bike through the busy Chennai road on the heavy traffic,i got a call.But i didn't bother picking it up and then again i got a call from the same number,this time again i resisted and the 3rd time i had no options but to answer it.I wondered if the caller was one of my friends calling to talk something important.But it was from the marketing team of an MNC Bank and the lady who called up was like ''Sir are you in need of any loan??? because we are planning to give you a loan".I was like ''sure madam i wouldn't mind at all,but who will pay my loan??because i am a student.",i thought she would be surprised but then she said''OK sir,bye'' and having troubled me so much on a sunny day i was dead angry with her and i shouted at her saying not to make such calls anymore.The thing that amused me the most was that even after coming to know that am a student she wasn't surprised and then when i enquired i could understand that it was not just me but the whole of the student community (in particular,not many of us earn now) get such calls from the MNC Banks trying to woo us into getting loans.Not just loans but also credit-cards and stuffs like that.

The reason i said is that,if the students we are being dragged into getting loans by these people,what will be the condition on the working class?.

Now let me take you a decade back to America,that was actually when Americans really started
enjoying life with money in the form of credit-cards and these wooing business of dragging the people into getting loans became more prominent and it was like everyone with an address proof and a bank account could actually end up getting loans and credit-cards.So at the end of the day it was like people started spending money which they never earned.Just imagine a person earning 100$ a month had a spending power of 1000$ with the help of the credit-card.So if he were to repay the money he spent over night he will have to save his entire income for nearly 10 months.I wonder how the people who issued him these facilities didn't even bother to think over such a situation happening.And that is 1 reason why the world is unstable now if i were to talk about the present economic status.

We can see the headlines in the newspapers these days and they are talk about misery and plight of few of the biggest financial players in the world.I am really sad about the present occurrences,the high inflation rate,the soaring crude oil price and even the steep gold rates.I wonder when these issues will be sorted out.The plight of the greatest names ones like Lehmann Brothers,AIG,Merill Lynch,Morgan Stanley and even Citi Bank is very much unsure and its just what is going to happen to many others as well if nothing is done about it immediately.What will the people working in these biggies do,and what about the investors who have invested in their stocks,will they ever get back their hard earned money.

Though the whole world is trying to do their best to nullify these problems and bring a new world order,if the developed nations themselves are having these problems i cant even imagine the same happening in a developing nation like India or China especially attributing to the huge populations of these nations.China is always having trouble with bad-debts that are written off and it accounts several hundreds of billions.India is famous for its risk free banking all these years but now since the entry of the foreign banks and too many private banks coming even we will be affected later on.

I wish we Indians understand the basic fact that we should not spend what we don't earn.It doesn't mean that you need to be a miser,just make sure that you remain debt free to some extend,you need a control over your expenditure especially because of the new turn our nation has taken and since too many products ranging from a needle to the best cars like BMW,MERC have all started to set-up their factories in India,the basic Indian consumer must make sure that he is not lured into such extravagances too much.And make sure you don't use your credit cards too often,having a credit card can actually make you spend more.

JAI HIND