The Financial Meltdown – Origins, Participants and Why it was waiting to happen?
I have been having many a round of discussions with my friends, Aman and Nitin, on this topic. I, with a finance background, end up having the task of explaining what caused this. It’s those endless discussions, leaving our spouses frowning, which forced me to write this blog. An attempt has been to put together in a layman’s language on various aspects of this economic seizure, of the financial tsunami, popularly called these days. We will stray here and there to understand various concepts as it comes along. Any economist worth his salt probably knew that recession was on its way. What probably they couldn’t figure out was the depth of malaise and consequent magnitude of seizure, leading to the collapse of global economies. But what intrigues me is only very few had the guts to take a position and write about it convincingly, against the popular public opinion, while it was sunshine. History has it that public opinion is based on ‘expectations and euphoria’ and not on facts and it’s ...