Overeating by Bush causes problem in the world

Please read it carefully

I am unable to understand where all money of the bank has gone after failure of Lehman Brothers in USA. Everyday or alternate day Mr. P. Chidambram Finance Minister or RBI governor or Mr. Manmohan Singh PM has to give a statement that there is no liquidity problem in the banks, our banks are well capitalized, we are not that much affected by global crisis, our stock market is well regulated, we are keeping watch on the developments taking place in the world, proper steps will be taken to ensure adequate growth rate and so on.........

Contrary to various statements released by government of India or Governor of RBI, they have been announcing one after other bail out package every now and them to inject more liquidity in the banks, to stop further fall in the stock market, to ensure that aviation sector does not succumb to bankruptcy or closure, banks are not short of cash to meet borrowing demand of corporate sector, or to have adequate capital in the banks.

All these proves that the situation is not being well ,properly and correctly assessed by rulers and regulators, or the policy is not being rightly and honestly executed by the agencies who are supposed to follow the rules and guidelines or else the policy diagnosed by the government to meet the current crisis is defective and not to the point. Problem may lie in the heart and the government may be treating the leg.

It is true FII's ARE TAKING OUT THEIR MONEY BECAUSE they need the same in their own country ,because of more acute crisis in USA , because of sharp rise demand of dollars, and not because of restriction of PN imposed by the government in 2007 nor is it that Indian growth story is unsatisfactory compared to that of other nations .

And after all how much FII’s have withdrawn during last month is a billion dollar question? Our foreign exchange reserve has come down from 312 billion dollar to perhaps 287 billion dollar, i.e. a withdrawal of 25 billion dollars.

Is it more than what has been injected into the system by our FM by way of sharp cut in CRR, easing our PN Norms,relaxing ECB norms, reduction in repo rate, advising cash rich government departments to park their surplus fund in PSU banks, release of Agriculture Debt relief fund to banks and so on


Is their any account of inflow and outflow of the money from banks to match the government induced / injected liquidity vis-à-vis money outflow due to FII withdrawal and other repercussion out of turmoil in global market?

Now the time has come that the public will demand white paper from the government on economic events unfolding every day, on painful erosion of public money in share markets, on deteriorating position of banks. on closure of industries and business enterprises, on sharp fall in profitability of private as well as government owned establishments, on retrenchment of employees from various companies in private sector . on declining employment opportunities and so on….

Economists, Financial Analysts, veteran bankers, stock markets experts and even journalists is duty bound as also has the right to explain the general mass of the country why the Indian system claimed to be strong has been exhibiting weakness after weakness forcing the government to take step after steps.

Is it not true that government is unable to stop the activities of Institutions which are working in the style of Harshad Mehta or Ketan Parikh?

Is it not true that due to weak and ineffective judicial system, willful defaulting borrowers of the banks are not repaying their dues to banks resulting in liquidity crisis in the banks?

Is it not true that Non Performing assets in the banks has been increasing fastly in the banks due to dirty politics of our leaders but banks are willfully concealing the NPA and showing reduction in NPA year after year?

Is it not true that due to frequent waiver of loan by the government during last decades, a wrong culture has taken root in the country that people take it wise not to repay the loan taken by them from banks with the hope in their mind that sooner or later government will announce some package to provide relief to defaulters?---One of the reason for sharper rise in actual NPA ( not exhibited NPA in Balance Sheets)

Similarly is it not true that corporate and state governments, government department, PSU’s are not paying their dues resulting in liquidity crisis?

Is it not true that government is pressurizing banks to disburse more and more loans and not taking proper steps to ensure that money lent by banks is recovered in time to maintain flow of funds and to ensure proper recycling of the fund?

Is it not true that in the name of social welfare schemes or to ensure strength in political vote banks , government is spending unwisely on subsidies , aids, relief, rebates and so on…….?

Is it not necessary to stop over spending by Minster and their unwarranted interference in all sectors private or public, either by way of imposing reservation or tax or providing relief in whimsical manner?

Is it not true that ministers are spending lavishly on their tours, inaugural functions, rallies etc?

Lastly I want to know the reason of present crisis with correct figure and entire ins and outs of the matter , pros and cons of the current crisis .Can anyone help me?

Whether import of crisis from USA is unavoidable? If our health is damaged due to wrong diet of Mr. Bush then we should try to treat Mr. Bush first.


Danendra Jain