the inner voice

The downturn is bringing along with it other forms of casualty besides losing trillions of dollars. It is witnessing steep erosion of moral values. The moral fabric of companies and managers running has weakened. As they get increasingly jittery, they tend to break away from promises made and don’t fight back within the respective hierarchy with the same ebullience as they would in good times.  The concept of morality and justice implies that commitments made in advance must be acknowledged even if it’s to one’s own disadvantage. To one’s own disadvantage is something we are not prepared to live. Why is our moral fiber built so tenuous that a simple sudden tension snaps it? Why do we people start tending to take decisions by popular demand than by principle? Managers try to postpone or run away from the existing promises by blaming the ‘change in circumstances’? Changing times as a reason comes in handy in business like situation and everyone’s exploits that to cover his or her sh...

Came across a very relevant quote in today's context from Richard Feynman while reading one of his books/articles. He was a brilliant, leading post-war theoretical physicist, a Nobel Laureate, a great teacher, terrific original thinker, and writer. I quote:  "There are 10^11 stars in the galaxy. That used to be a huge number. But it's only a hundred billion. It is less than the national deficit! We used to call them astronomical numbers. Now we should call them economical numbers. - Richard Feynman, physicist, Nobel Laureate ( 1918-1988)" When seen in today's context of financial crisis which runs in trillions of dollars, this number looks even smaller. Next-generation will probably start counting from $1BN, $2BN, $3BN....$100 BN. Had he been alive...he may have called them "Infant Numbers". What do you say? Or Can you propose some other name!

Last week has been a watershed week in many ways. So overwhelming have been the events that all of us have been taken in by surprise and shock. This will definitely serve as turning point in the history of finance. Goldman Sachs and Morgan Stanley have been converted to banks, WaMu seized, Wachovia disappeared, Money market funds at below par and the saviour $700BN package getting rejected by senate. It’s tough to digest so much so quickly. Haven’t added the European seizures. For sure it will get real nasty before it gets any better. The crisis is not only the crisis of credit and liquidity, but of trust and confidence as well. Corporates and Individuals both are in bad shape. Corporates are not getting money to run their day-to-day operations, forget long term, where borrowing costs are touching the sky. Return hurdles for lenders have gone up. One wants to lend very very safe. Individuals are in bad shape, with retirement savings, education savings and health savings gone. Shares ar...

There are some events that happen once in a lifetime and they leave their mark forever.  This week saw one such event in the world of finance - the stunning collapse of Lehmann Brothers and Meryll Lynch and AIG teetering and can drown anytime unless Fed steps in. Wall St, never had it so bad and raging bull in front of it, watching it helplessly.  The decline started with the collapse and fire sale of Bear Stearns. The tsunami of sub-prime has swept away everyone on its way. The top five investment banks have been reduced to two and who knows how long will even they survive. Goldman Sachs, which looked stronger till recently, suddenly looks vulnerable. Rumours are that even Morgan Stanley is not safe and may merge with GS. These firms were the mecca of high finance and every MBA worth his salt dreamt to work there. The collapse has sent the world markets into a tizzy. Every country has been affected. Markets opened with trepidation and fear.  Central banks of all natio...