Hangover After The Party
First and foremost I understand the pain that employees of ex Lehman must be going through. It must`ve been hell to listen and watch media repeating your firms name again and again and saying not so good about it. It must've taken courage to bear the reality of loosing one's job along with seeing the ship sink right in front of your own eyes.
Though this might be true of the employees of Lehman, the news of Lehman collapse was followed by Merrill Lynch buy out by Bank Of America and this was followed by the King of bad news AIG. These news reached such a crescendo that even small investors started wondering that something is wrong somewhere. Then we saw US Federal bailing out AIG. This was again a shot from the blue as some thought that US is letting go off it`s Capitalist ideologies and trying to embrace Socialism.
All these debates reached such a point where people started asking questions such as
■Should taxpayers be paying for Wall Street excesses?
■Are bankers who made self millions with reckless & foolish decisions be allowed to go scot free?
■Should the pays in the Finance sector be regularized?
■Should the institutions churning out Financial experts teach their students the importance of Long term goals against short term profits?
And finally the question that we now have to ask is that will the Government bail out of AIG work. What if it does not work? Some say that the situation last week was hours away when there would have been a run on the banks and the world would have plunged into a global depression.
All we can say that in the last week we escaped depression by the skin of our teeth. As reality always bites I feel the coming weeks might be less stressful than the previous week but would definitely be not easy.
As they say after every big party, there is always a Hangover.
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