Investment
banks, banks, hedge funds, financial wizards, powerful politicians. Have all
contributed in some measure to the present crises the World is in. Every one
blames capitalism for the wrong reasons.
Numerous
books, expert advice.... all have one theme in common and that is: financial
institutions, investment banks, and their employees made disproportionate
profits at the expense of tax payers money in different countries, poor became poorer,
and pensioners faced a bleak future. Why this is happening?
Despite mounting
evidence of financial skullduggery, billions of dollars were pumped to bail out
financial institutions for their misdeeds. The result: Financial Institutions
have been saved to lay the foundation for another financial crises, minimal
economic growth, bleak future for pensioners, high rates of unemployment.
If governments of various countries are serious to save their respective
economies then don't allow deposit taking financial institutions to invest in
stock market and financial derivatives. Speculators including investment banks
should fund their adventure with their own money and not the tax payers.
In the real world,
there is no real capitalism, no real free market, no ethics, no morals, &
no values.
The western world
is anything but capitalist. Every large bank, large financial institution,
large insurers know that they can freely pursue their indulgence, without
facing their consequence, knowing fully well that they will be saved by the in
government and that there is no punishment for their misdeeds.
Is there a free
market? The answer is no. Large banks, financial institutions have so much
money and power to manipulate any market. The only section to suffer ignominy
are the retail investors.
If the countries in
the world follow current course of action then the result is clear: No Positive
Result.
What should be done
by different countries in the world to come out of this economic conundrum?
Every country
should understand what governance is.Every government is servant of its people.
It directly follows that all institutions (including banks & financial)
that support the in government in its governance are also servants of its
people.
Every in government
should strive for the wellbeing and welfare of the vast majority of its people.
Is this the case in the real world? The answer is a clear no. Every in
government works for the welfare of a small percentage of its people.
Every in government
in the world should not dance to the tunes of their stock markets. Thanks to
dancing to the tune of Wall Street, USA lost its technological and manufacturing
prowess in the process. It created a manufacturing giant China out of nothing.
It inflicted a huge financial deficit upon itself.
Can economies in
the world grow without satiating the appetite of stock markets? Can we have
pension schemes that are different from pay as you go or DB? Can we raise
finance for companies that are long-term like equity but without its associated
costs? Can we get rid of investment banks, hedge funds, and financial derivatives?
The answer to these questions will be attempted in the coming days.
Financial
innovation that eliminates dependence on stock markets & elimination of
investment banks will make world economy stable. Powerful investment banks can
manipulate stock markets & stock prices at will.
Companies with no
pressure to answer the call of stock markets will become more responsible
socially & have less temptation to shift manufacturing base.
Pensioners in any
part of the world would like to have steady pension that is not based on speculation.
A fixed rate for pension can be fixed country-wise & this also will reduce
healthcare cost of pensioners.
As every country in
the world has an all-intrusive government, health care & low-cost housing
need not be a business. The action taken will boost the purchasing power of low-income
groups & help the global economy to recover.
Source Actionable Ideas focuses exclusively on sustainable actionable ideas to make capitalism work to create job opportunities for people.The Goal:Make people find jobs in every country.
Monday, November 25, 2013
Idea to save capitalism
Friday, January 20, 2012
About Source Actionable Ideas
Source Actionable Ideas focuses
exclusively on actionable ideas to make capitalism work to help people find
jobs in each country.
The Goal: Make people find jobs
in every country.
The world is facing an economic crisis. Yet each country is clueless on how to
come out of the crisis. All formulas to revive economy suggested by economists
including Nobel Laureates has been tested without success.
Some economists suggested government intervention and spending. After
implementing this suggestion economy becomes worse.
Some other economists suggested controlling money supply to control economy.
Even this suggestion doesn't work.
Some other economists suggested inflation targeting. Even this suggestion
doesn't work.
This
blog will focus on possible solutions to economic problems that will help
aspiring citizens find jobs in their respective countries.