I am a Page 3 reader, as Politics does not interest me, nor does Sports or Business news for that matter. It may be because of my 'chota dimag' I am not so sure. However, the current economic meltdown, has caught my fancy, I do not know why. May be something good will surely emerge, is what I feel.
I generally flip through The Telegraph, but today some thing drove me to buy The Economic Times. We the developing nations have always looked upon USA, and first and for most we report all that is happening there, for we know it is bound to have a great bearing on our developing nation's economy.
As such, all the headlines that grabbed attention dealt with the happening in the US Market. These are just a few of them, in a nut shell.
2,40,000 job cuts in US during the month of Oct: '08., a record in 14 years. The real cause of worry is that not only the Banking and financial sectors, but downsizing is spreading across all sectors.
Ford drains out $ 7.7 billion as sales falls. GM burns $ 2.5 billions in Q3 seeks bailout.
Retail sales worst in 30 years. Really alarming when the US economy is powered with consumerism
In India the Forex reserves dip by $5.5 billion as FII's stay in sell mode. Foreign exchange kitty has shrunk by $ 57 billion so far, this fiscal.
The Confederation of Indian Textile Industry said some 7,00,000 people have lost their jobs, this year and 5,00,000 more were likely to go in the next 2 to 3 months.
Demand meltdown dissolves 150 small sponge iron units in Eastern India, nearly 50% . Many more are on the verge of closing down.
Airline Industry is the worst hit, employment rate is expected to shrink 40 -50% year on year. 150 Commercial pilots who have trained, shelling out Rs: 20-25 lacs are not getting the jobs.
To lighten the burden a little, here is a flip side to the economic meltdown. Just got a mail from Benny Hinn ministry and they are offering Debt Cancellation Stickers, and will be offering special pray from freedom form debt. I simply chuckled when I got the mail, and I reserve my comments. I wish it is that simple.!!!
It is very important to understand the genesis of the crisis. It is on account of the economic mismanagement at the individual level.
According to US census data, per capita disposable personal income (net of taxes) was $30,418 in 2005 but average annual expenditure rose to $46,409 in the same year. This means, people in the US borrowed more than, what they earned to foot their consumption bills.
From companies to investment banks, all drew up big expenditure plans on borrowed funds. In October 2004, the US securities market regulator suspended the restriction of net capital requirement to borrowed capital for Goldman Sachs, Merrill Lynch, Lehman Brothers, Bear Stearns and Morgan Stanley.
Freed from restriction on debt, these five investment bankers borrowed as much as 40 times of their net owned capital !!!!!!!!!!! (input from article in the Telegraph by Srikumar Bondyopadhyay)
So now Allah forbid, but if you happen to get a pink slip, you know whom to blame. The GREED of the five top Investment Bankers and US securities market regulator. The financial misadventures of a few vested interests have brought miseries to thousands of hard working Professionals. I sincerely hope and pray that there is not one from our community who looses his job any where around the world.
We do not need Debt Cancellation Stickers, what we need is the Doa Mubarak of our Aqa Moula (TUS) and his doa mubarak will surely be answered in us, if we follow the tenets of our Deen and have firm faith in his doctrines of earning livelihood with rightful means.