Whatever is happening in the US banking and financial sector, Fed was aware of that at least a year ago but they did not take any stern and regulatory action in one go but decided to go through a phased out manner so that there any severity any causing economic collapse could be averted. So Fennie Mae, Freddi Mac, Bear Sterns, Lehmen Brothers, Merrill lynch, AIG and now Morgan Stanely come open as bad affected. Citi Bank already went through the heat. Now many more are in the line as books of most of the US banks are having on an average 65 percentage of subprime loans. Property valuation going down affected them badly even upto collapse.
European banks will not also not be left out of turmoil. Already Deutsche Bank and Helifax Bank of Scotland have given the hint for what will happen in future with European Banks.
Capitalism moving towards socialism or temed as capitalisation of profit and socialisation of losses as termed now. A mix of both is good one for a balanced economic and financial growth.
So, India must continue with mix one...
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment