Implications of the bailout !!!

There is a lot of controversy surrounding the bailout and its implications and I am very sure the common man is not bothered beyond knowing whether things will be good for him or not. This post is for that common man who should have a certain assumptions cleared before he gets to understand the bailout and starts smiling.

First a little history. The Wall Street is witnessing turmoil many thanks to the American way of life - "Borrow and spend". All the pillars that gave to the world too many innovative financial products are all set to bite the dust if they haven't yet. The bailout is to rescue the ones that haven't yet got stung by the fangs of the venomous snake that was fed collectively by all these pillars.

Getting back to the Layman, all he would know is that the bailout sanction will do good for him, improve the financial markets which would translate to easy availability of loans at slightly higher rates of interest. Mistake !!!! Why then would the whole American Congress vote against it in the first place? Elementary logic, we cant buy out the shit we are in. For the bailout to possibly show us a way out, the housing market should become stable which looks like a far fetched reality with the number of people defaulting on their houses.

By stability I mean the Real Estate prices should not drop as they are doing right now, else the banks will never get to know when they can get easy on lending. The exclusivity that they now show to people with sterling creditworthiness needs to be done away with. Its a simple vicious circle -- stricter loans means lesser buying,which means lesser selling which means more defaults because of falling prices (Demand far less than Supply )which means graver situations for the ages to come.

The point here is that bailing out the so called "distressed assets" which are in the form of Mortgage backed securities may not help as much in improving the financial conditions all over the world.

The post is not intended at criticizing the bailout as this is one of the only pragmatic solutions that could be offered. Its just to clear a notion that blinds the common man and reads "Happy days are here again" and to make the policy makers realize the fact that one should pay for one's faults and the payment mode will not be through "Cash or Credit Card". Unfortunately it's not as simple as that.

All said and done the bailout offers hope to people who are really gloomed by the fallout of the markets worldwide. All I could end the post is with this "Hope is a good thing and no good thing ever dies". Amen!!!!

Whatz TalkOfCampus

TalkOfCampus(ToC) is a venture started by us, the students dedicated to the student community !!!!

Before you understand what ToC I want to highlight a peculiar problem thats prevalent not only in India but across the world which disables the student from connecting to a college. Let me ask you a question that will help understanding it better

How frequently do you check your mails ?
How frequently do you checkout the Notice Board of your college ?

Though both these things are not far too separated in the level of importance they ought to be given ,our survey shows that there is a significant difference in the numbers they quoted as the answers to these questions. And we were sure it doesn't take an intelligent guess to assume reasons for this difference .Its the ease with which both these things could be done. Hence,what we could have done is either asked the people "why the difference ?" or provide a solution to "narrow the difference". We chose to do the latter as we were sure we can not provide solutions that can wipe out a deep rooted problem in lesser time. This is where ToC fits in and provides an online notice board packaged with several other features like Discussion Forums , Blog Space , News etc which help the student to network with peers everywhere and broaden the horizon of learning.

ToC offers students a gamut of services which are:-
•Notices – Find important notices in the college that ought not to be missed here.
•Forums – Discuss, debate anything to everything be it academics or otherwise here.
•Projects – Share, develop and deliberate on projects, form teams with peers outside your college, do it all here.
•Blog – Encourage the intellect in you, share your views regarding different and diverse topics and read others here.
•Trivia – Hone your General Knowledge by testing your skills, answer the questions here.
•News – Stay upbeat with all the recent happenings worth noting both in the campus and off it, find them all here.
•IDesk – Reply to friends that have personally messaged you and search for whatever you need at ToC here.
•Polls – Have a problem with something that is happening in the campus, find out how many feel similar and voice your opinion here.

Visit http://www.talkofcampus.com/ and register. Stick to what our teachers right from kindergarten have always told us " Enjoy Studying !!! "

http://www.talkofcampus.com/ .... Here you hear :-)