Frauds in the US and corrective actions

 I certainly do not say that America is a special embodiment of badness... to me, it is just another nation with it’s pluses and minuses. Some see the pluses outweighing the minuses, and some like me, see the other way, that is all. For people landing up straight in the USA after India, and virtually settling down there, America is the best place on earth. But for those who have lived elsewhere before or after living in America, that place is just another place, maybe better or worse than their other country experiences, depending upoin where they have lived. And for me, who has been travelling to so many countries over the last 15 years or so, America is still one of the better countries, but clearly there is no halo around it’s back, as far as I can see.

To me, the politicians are the same everywhere, including the USA.  They all try to make money wherever possible, with varying degrees of probity. The Americans by and large seem to firmly believe in the 11^th commandment “THOU SHALT NOT GET CAUGHT”.   That is all...

1. 1.       Did the US Govt not know before that money was being channelized into Swiss banks, ever before? SO what were these people doing all along, without asking for the details? Becuase, they are now cornered.
   
2. 2.       Did the SEC and Fed not know the over-leveraging through exotic financial risks and the dangers they posed? Read the book “GREENSPAN’S FRAUD” by our own Ravi Batra if you have any doubts on why the US Govt kept quiet all along in spite of knowing all these wrong-doings.  http://www.amazon.com/Greenspans-Fraud-Decades-Policies-Undermined/dp/1403968594   .   The fact is, the Govt is now cornered, and are posing as if they want to bring in some semblance of order. If you want to believe in them, it is your call.
   
3. 3.       Did the SEC not know the consequences of shorting Banking stocks, a la Bear Stearns? Then why did they allow a run on the bank stocks right till the end of the year, save for one brief 15 days in between? After they were caught. They clamped down on it, with partial success.
   
4. 4.       Similarly, does the US Govt not know the dangers of funding short term cash requirements with long term debts like 30 year T-Bills? Of course they do. So then why are they continuing it?  You can answer it for yourself.
   

 

Nett of it, they continue to do all wrong, knowing the fall-outs fully well, until the hell breaks loose. And then they take corrective action. Much like the policeman, who knows the dangers of not patrolling the area properly, resulting in thieves coming in. And then the policeman taking action to catch him...   if you want to repose your faith in this policeman, you are free to do so.

Talk about patriotism – you should visit countries like Korea, Japan and China, they are a lot more patriotic than the Americans. The Japanese actually demonstrate it. Of late, you can see many goods Made in China in Japanese stores, but I am told by my local friends that they don’t sell well enough, and that the Japanese prefer locally made goods. It may well be a combination of stringent quality requirements of the Japs, as well as a liberal dose of patriotism. On the other hand, I wonder how many Americans will stop buying cheap Chinese goods from WalMart, and switch over to USA-made goods ( if at all there is anything left), in the name of patriotism...   I would love to see sales of goods from outside dwindle in the USA, before affirming the patriotism at the individual level.

 

The trouble with the Americans in general is, they really do not have much stakes on the ground, both historically and in the present. To me, the Americans are relatively more polite than, say Europeans, because they never had to bear the brunt of foreign influence, culturally or through invasions.  They seem to be more patriotic because their patriotism has never been seriously tested before... this economica downturn is a good chance, and let us how many of them raise in unison against foreign goods and adopt locally manufactured goods.

Historically, the Americans have never been invaded by anyone in any significant way – neither by the Mexicans nor by the Canadians...  the closest was the Pearl Harbour episode... or, you can say, the 9/11 episode...   hence they found it expedient to have a nice big defence industry, and supply arms to all warring countries in the world, and quite often indulging in moral policing of the world. On the contrary, the Europeans have fought war after war amongst themselves through the Renaissance period, right up to the Georgian war last year. History will prove this...this naturally makes them more pugnacious. No wonder Europeans, especially the continental variety, are considered more impolite.  Incidentally the same is the case with South India... we Southies pride ourselves in being a Sadhvik society unlike the North where people are seen as uncouth and rough....   bear in mind that the Jats, the Punjabis, the Rajputs etc have borne the brunt of 1000s of years of invasion starting from Alexander in the BC period, right up to Kasab on 26/11 ....  whereas the Southies have had relatively long periods of peace.

 

Having said all this, I agree with you the once caught, the US does take swift and affirmative action ( eg. Bernie Madoff) or Enron... whereas in India, the laws are so damn shallow that anyone can get away with it... I am amused that Shibu Soren continues to be a Central minister inspite of the whole world knowing that he is a criminal, simply because the provisions of the law have been used to manipulate the evidences and get him out comfortably.

Let me also make a controversial statement here. At the risk of getting beaten up, I would venture to say that the birth of India on Aug 15^th 1947 was based on corruption.  We paid for peace of India, by splitting ourselves, and creating Pakistan from out of us.    We even strike deals with God, none lesser. We quite often pray “ God, give me this, and I will offer you xyz as Neivedhyam or Nerthi Kadan” !!! As if God is waiting to strike this deal with us !!!!     It is in the culture...   today the Indians, especially the Hindus who pride so much in their rich past, are prepared to compromise on anything for the sake of materialism.  We keep harping on our rich past and do not realize that in today’s context of the world we are a nobody.

To me, the Indian society of today is surely on a path of degeneration and decandence, and if we don’t mend our ways quickly enough, we will go the way of Chinese – economically successfully but socially doomed!!!