Tuesday, September 30, 2008

"Hunters getting hunted"

The global crises has left investors feeling drained and devoid of investment options. the phrase "too big to fail"has became a history. the whole scenario has changed at the wall street. The country with the biggest financial system has been under serious ecnomic crises. Hunters are getting hunted at the wall street it all started with the sub prime crises and recently the fall of the 4th largest investment banker added to the panic. I dont remember when I saw my portfolio last gone are the days when we use to watch CNBC,NDTV profit and all those business news channels regularly while taking our breakfast and lunch and saw our share prices soaring up and felt proud of our investment decissions.
US goverment $700 billion bail out fund to save the economy would mean taking over several global investment banks directly or indirectly US would become the largest owner of sovereign wealth fund(SWF) in the world.What I think that this crises is a result of faliure of regulatory policies to guard against exessive risk taking by the financial system.The crises have put a question on the role of credit rating agencies and regulatory policy makers.It has urged for a greater transparecy .The whole arcitecture has to be rebuild so that the economy can resist the load of such crises.There is a need to rethink about the accounting rules ,regulations and transparency