Recently spoke to a Texan engineering consultant about the woes of the world market, to get a feel of how an American reacts to an infectious malady born in USA. He was pretty cool about it, saying casually that this is going to take three quarters more to get back to normalancy. He pointed out that the earliest signs of the recovery would be the drop in unemployment levels, and raising of interst rates. These two parameters he said, would be a healthy indicator. i asked for good measure what he thinks is the right price for oil in this scenario, to which he replied about seventy should be good. Sounded fair, the rates, controlled by American companies are always illogical. The commoner on the street should be able to get a tanks fill without having to worry about other consequenses. Then i came to the crux of the discussion, which i suspect he was ready for, he knew somehow that i would ask him. So why do you think this had to happen, who, if you were asked, is the single biggest culprit?
He was a smart diplomat in this classical answer of his, 'greed my friend, its greed'. There can be situations where the consumer is looking for a refuge under some sort of cover, to meet his desires, the market foces if not ready to meet the challenges shall be losers in the long term. Only, the methods chosen should have state approval in almost all cases so as to avoid future consequences. At least that is what is proven in this recession. The world needs better economic regulations to accomodate the aspirations and fix the greed of the principal lenders. Further i stated matter of factly that the reforms are going haywire and that the very basis of economics is a farce, its a dicey concept. He fully agreed to that and offered to add that it is called, 'the dismal science'. i laughed at this new phrase. Yeah, yeah, he indulgingly muttered. Trying to put mathematical coordinates on to human behaviour is nothing but an absurd idea. So the world will always see such phases, more of the global meltdowns are likely to occur, unless a very strong fundamental base of economic governanace is rolled out for the all the nations to follow. That is an unlikely scenario, like telling fifty chimpanzees to stand in a line for some bananas. Someone is bound to jump the line, someone would scoot with a whole bunch. Man is only socialised, an animal all the same.