Economic Topsy-turvy - Chinese Curse

Is it not ironical that a few years back the world saw Russia privatizing its state-owned enterprises and activating its stock market thus increasing prosperity for atleast some Russians and now we see the Western World on a nationlising spree, coming to the aid of its' ailing banks and stock markets to preserve the wealth of few Capitalists.

Who will have the last laugh or will it only be crying for all concerned for the foreseeable future, both in the East and West ?

Asia which includes China, India and the Arab countries may be able to save the world with their enterprise, savings habits and oil wealth. But will they be given the chance or will they be hijacked by the corrupt capitalists of the Western World again ?

Also it is really sad that now all the renowned International Banks want everything guaranteed by governments, viz their lendings, their borrowings by way of deposits from Public, inter-bank borrowings and much everything else.

It seems Risk management has gone out of the window as far as Banks are concerned after they have played fast and loose in the last few years. Why should they then be rewarded with fees and interest and profits ?. No risk, no reward.

It appears that all banks have to be nationalised by their respective Governments and only Sovereign Risk will have to be assessed for lending for any purpose. What a come down for Banks. Thanks to USA's leading financial brains for making a mockery of all Banks.

Consider this.

Paulson as chief of Goldman Sachs pushed Congress to liberalise rules for Investment Banks so they can take on higher leverage to speculate and make more money betting on worthless loans and paper securities. His firm sold these to other Banks, etc. Then he becomes Treasury Secretay and sees the mess explode the financial markets. He allows Bear Stearns and Merryl Lynch to be taken over by bigger banks, lets Leehman collapse thus killing the opposition and that leaves Goldman Sachs and Morgan Stanley standing. They turn themselves into Banks. Meanwhile Paulson drums up the Bailout Plan of $700 billion to buy the toxic mortgages and another $250 billion to recapitalise Banks. Guess who benefits, his old firm Goldman Sachs. The Bailout is going to be administered by his ex-aide at Sachs, Neel Kashkari who is now the Bailout Czar. Shows how one of the Villains of the Crisis has morphed into the Hero of the Bailout.

God save USA.

To paraphrase a Chinese curse 'we are living in interesting times'"