Spoken words

By now every ram, arun and vijay ( Indian versions of Tom, Dick and Harry ) where ever he is, would be quite aware of the financial "situation" in the world. So what happens when a big financial institution crashes..?? People fear that other institutions will collapse as well. In a financial setup, set backs are common when something major like this happens. But are all fears justified...? Definitely not.. Sometimes they just make matter worse. Like the rumor that a major Indian bank - ICICI - was doomed because they had invested in American banks. So what happened was that people began to rush to the banks and ATMs to withdraw their hard earned money..!! But the way a bank functions, its not possible to return everyone's money within a day..!!  NO bank can do that..!! Definitely not possible..! A bank doesn't keep all the money it collects from its customers, in their vaults. They circulate and invest it..! How else are they able to give you an interest on your dep...

I was absolutely clueless about what's happening to the world markets, and the economical jargon confused me beyond any hope. But i knew that what was happening could or will in some way affect us, whether we understand it or not. And guess what, i had nothing better to do other than stare at the news on TV. Well... from what i understood, it all began with America's very generous credit policies. Which meant that credit or loans were given to almost anyone, without even ascertaining the fact whether that fellow could pay it back or not. Mostly these loans were provided to purchase houses. As more and more loans started to be given out to buy houses, the land value too skyrocketed. Accordingly, the loan amounts given started to become even bigger. Now coming back to the fellow to whom the loan was given, might not even be eligible for the loan for whatever reason it might be.   The banks didn't scrutinize much the details about him, and just gave him the loan. Even if he ...