Few events have been written about or discussed so much in the recent past, as the financial crisis in a few large Wall Street firms. Wall Street, which stood as a symbol of financial strength was seen to crumble.This has affected- directly and indirectly, the lives of people as far flung as from Manila to Paris. Even as we talk, The US Government has had to intervene and pump in unprecedented funds to set things right- to ease the strangulation of credit in the economy.
How do these things happen? Surely this hasn’t been the result of one bad decision or of a few events that took place last week. The answer lies in a cumulation of many factors writes Shubha Ganesh in the Economic Times. She has been able to break up a complex topic and put across the basic reasons for the crisis in a simple- yet effective -way. This gives us insights into what really went wrong. I would commend her for her writing skills,
We in India are still trying to grapple with the extent to which the crisis will affect us. Clearly the impact on a few sectors of our economy will be more direct and severe. The dollar for one @ Rs. 47 to the Rupee has risen to much higher levels- perhaps the highest in the last two years. Organisations which have large business interests in the US are likely to be under the weather for the next quarter or more. Till the US economy settles down after the jerk it received.
I have always maintained that most crisis are man-made ( or women made, as the case may be). Very few, like the tsunami, for example, can be attributed primarily to the vagaries of nature. In other cases, some one somewhere didn’t do what they were supposed to do. The US financial crisis is but one of many such examples.
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This is Post No: 307 of the “A Step A Day” series : To provide perspective and provoke thought to facilitate self-development across a wide spectrum of issues- big and small- crucial for executive success.