Be a bit slow, Mr. Chidambaram

Prakash Karat has lambasted P.C for his aggressive stance to deregulate India's financial market.,d despite the fact that the entire world economy is plunging into crisis. At a time when economists all over the world agree that there must be a rethink on the current strategies, worldover it is really worrying to see some of the bills that are being discussed in Indian parliament. The most sensitive one is the Pension Regulatory Development Authority (PRDA) bill which seeks to allow the pension funds in capital markets. With the entire financial world running on speculation, I think it is not a good idea to allow pension funds to invest in financial markets, especially derivatives, futures and stocks.

I believe a detailed discussion must take place before any action is taken, let's hope Chidambaram doesn't act in haste. One thing which worries me a lot is the fact that BJP are also neo-liberal and this could prove a boon for P.C. It is upto each and everyone of us (Indians) to make sure that we follow the progress of Pension Regulatory Development Authority Bill, Banking Regulation Amendment Bill and the Insurance Amendment Bill.

This was how A.I.G. went down

I came across an article in NY times by Morgenson regarding how the insurance giant A.I.G went down.

The article gives an immaculate picture of how Joseph J. Cassano and his 376 member AIG financial group, stationed at London, bought about the demise of the parent company via Collateral Debt Obligations(CDO).

I am still unsure whether the $85 billion bail out by Fed is enough to sustain AIG, because with the number of home mortage defaulters increasing, the CDO liablity of AIG to its clients is bound to increase.

From latter part of the 20th century, the way economy is running has become incomprehensible to a common man. I believe if we want to improve this world, knowing economy is one of the most important things. Time to buckle up and do some reading.