FAMOUS LAST WORDS of 2008

THE FAMOUS LAST WORDS A US dictionary held a word of the year contest …and has declared the most famous words of the year (2008) !

FAMOUS LAST WORDS…of 2008 THE FAMOUS LAST WORDS A US dictionary held a word of the year contest …and has declared the most famous words of the year (2008) ! Top of the charts is BAILOUT Now that is really something interesting…. to write about … at the end of a year… that has seen many dramatic turn of events… If we look at the top four words of the year, a clear picture shall…probably…. emerge of the world scenario! Bailout…vet…Socialism…maverick…. These are the key words…the cues for a script writer….to write a not-so-pretty picture of the present times ! Let us begin with the word ‘bailout’…. Wikipedia has this to say: A financial bailout may describe an external intervention into the economic affairs of a nation, industry, corporation or citizen, typically for the purpose of enhancing their financial circumstances for public benefit. Further, a bailout presents the challenge of moral hazard, by rewarding excessive risk-taking. World economies are entering recession….so a financial bailout is surely the need of the hour ! But what is this moral hazard ? Financial bail-outs of lending institutions by governments, central banks or other institutions can encourage risky lending in the future, if those that take the risks come to believe that they will not have to carry the full burden of losses. ( source: wikipedia) So the picture is clear…..recessionary conditions need a bailout… that was triggered…..in the first place by irresponsible lending ….among other things !!! But what on earth were the financial wizards doing……? Neglecting their duty…..??? ……They would have definitely VETTED such risky lendings and other economic decisions ! ( Vetting is a process of examination and evaluation, generally referring to performing a background check) So ,does it mean that improper vetting of financial proposals/policies has lead to this global crisis ? Bravo ! Now where does the idea of a bailout lead us to ? While most PROGRESSIVE economists are ( often ) heard crying hoarse …that a THE FAMOUS LAST WORDS A US dictionary held a word of the year contest …and has declared the most famous words of the year (2008) ! Top of the charts is BAILOUT Now that is really something interesting…. to write about … at the end of a year… that has seen many dramatic turn of events… If we look at the top four words of the year, a clear picture shall…probably…. emerge of the world scenario! Bailout…vet…Socialism…maverick…. These are the key words…the cues for a script writer….to write a not-so-pretty picture of the present times ! Let us begin with the word ‘bailout’…. Wikipedia has this to say: A financial bailout may describe an external intervention into the economic affairs of a nation, industry, corporation or citizen, typically for the purpose of enhancing their financial circumstances for public benefit. Further, a bailout presents the challenge of moral hazard, by rewarding excessive risk-taking. World economies are entering recession….so a financial bailout is surely the need of the hour ! But what is this moral hazard ? Financial bail-outs of lending institutions by governments, central banks or other institutions can encourage risky lending in the future, if those that take the risks come to believe that they will not have to carry the full burden of losses. ( source: wikipedia) So the picture is clear…..recessionary conditions need a bailout… that was triggered…..in the first place by irresponsible lending ….among other things !!! But what on earth were the financial wizards doing……? Neglecting their duty…..??? ……They would have definitely VETTED such risky lendings and other economic decisions ! ( Vetting is a process of examination and evaluation, generally referring to performing a background check) perfect development model is one where Governments should practise a HANDS OFF POLICY…..they propagate acute capitalism… …but when it comes to the “judgement day”…they need a bailout !!! Then where have we gone wrong….why do we vehemently condemn SOCIALISM … While the critics of socialism believe that Government intervention in business is absolutely undesirable, when it comes to a financial chaos…they support….ironically….a bailout package by the governments !!! Can you imagine !!! And this brings us to the fourth magical word….maverick ! A maverick is defined as … being independent in thought and action or exhibiting such independence…a dissenter…a rebel So, probably the answer to tide over this current confusion….and to make sure that the world does not enter periodic man-made depressions… is that we need a redefinition of policies of economic growth …and probably a ‘maverick’ solution that marries capitalistic virtues with so called ‘socialistic’ mindset ! Maybe there is a need to ‘vet’ a proposal for a moral/philosophical ‘bailout’ !!! To conclude, one can say …. these strange word contests do serve a purpose after all ! They provide us with the glimpses of the ‘between the lines’ scenario….and throw up oblique answers for a healthier evolution!!! Amen! http://www.pegomag.com