From Fannie Mae and Freddie Mac to Lehman Brothers and to AIG suggest one thing—not something but everything is bad with world economy today. It seems untameable even after successive bailouts. However, I am not here to paint a gloomy picture of world economy busting with debts and certainly not to propagate the idea of worst economic tipping point since Great Crash of 1929. Instead, let us see, how we should deal with the crisis. The solution lies in the process of creation of crisis itself. Greed, more greed and still more greed for profit to invest in projects after projects overlooking the viability is the reason of crisis. Ultimately, it led the financial institutions to the vortex of taking more risk to counter the loss after failure of some unviable projects earlier funded. With time, these institutions have plunged into whirlpool of loss. Although financial experts, with time, have created a sense among common populace that economics is not the bread of lesser mortals, but believe me, it follows certain universal rules. The first and foremost is don’t be greedy. The second one is practice self containment—not to overindulge in profiteering. The third one is be transparent about money matters. And last but not the least be responsible. Perhaps all the above simple rules were ignored by our so called great financial institutions and their still greater masters who are running them. Learn fast or you will not last long! Also bailouts will not last long.
