Terror and Terrorist Control Mechanism Needed

After watching for day and night for three days, any sensible person can understand what might have been possible cause(s) behind attacks on Mumbai landmarks/public. Governments at federal and provincial levels need to make radically robust changes in its organization and manpower related to the security mechanism. The present security mechanism of having a civil police organization for 'law and order' issues has become irrelevant in modern India. This was functional during Raj days when issues, politics, and international relations were not as complex as those are today. The arms and ammunition were exclusively restricted to defence and police with rarely general public carrying fire power except some of those feudal lords whose states merged in Indian republic. I can vividly recall that our internal security was so lax or almost non existent when the prime minister Indira Gandhi was gunned down by her own bodyguards in 1984. In a knee jerk reaction, we created NSG and afterwards SSG for the security of politicians and non state actors. However, our civil police forces remained mostly unarmed in the provinces. The changes in the provinces in the police forces remained cosmetic and mostly newness was limited to rename the positions already in existence. The worst of all, these capable and not-so-capable police officers with a limited training became 'anti terrorist squad' in their provinces!!!
We saw it in the Mumbai the merciless killing of our talented police officers at the hands of AK-56 totting renegades. Our officers went with Kevlar single layer jackets capable to stop small arm fire with very least body cover!!! Can any one dream for such carelessness in 21st century??

Contd....

Mumbai Bloodbath

Terror has no boundaries and terrorists have no justification. They hit at the vulnerable spots to manage easy escape. This become much easier if the country happens to be India. Tonight, whatever has happened in Indian financial hub reminds us of 9/11 incidents in US. It is nothing less than 9/11 for India where democracy flourished and perhaps reached its crescendo now under the leadership of lalus and paswans. Plato must be in pain in heaven after seeing the aberrations in India as a republic. The gangs terrorising Indians in last more than ten years follow a faith which its leaders often prescribe as a faith of peace.
Tonight, India has lost some of the best trained people because India like any other nation has a soft underbelly. Terrorising armed forces is difficult if you happen to be a coward but even a coward can easily kill a child nursing in hospital bed or a mother in maternity ward or some arms-less people on the roads.

These renegades have killed innocents in cafe, hospitals, hotels and even on the road and railway station. They deserve what can be the worst of the punishment but more of all, their Godfathers deserve to be brought out in open.

Will it ever happen in a nation like India with a rule like Sharia for its minority?????

US Economy & Controls

contd.

Greenspan being a free market conservative may have to take the blame with several others who did not bother to look beyond the mandates. Credit derivatives were questioned by investing people like Warren Buffet. Derivatives needed extreme controls as people and particularly the auditors were reluctant to ask these big and bullying clients to provide for reasonable bad debts. No financial service and mortgage business client wanted to accept that a huge amount of credit is extended to the sub-prime public who are not capable of paying these huge mortgages. There were politicians to blame too who liked to arm twist financial service firms to fund the mortgages to these sub prime clients.

If auditing firms would have paid due attention to such 'dirty assets' of these financial firms in time, perhaps none of us would have seen this day.

Milton Friedman Will be Turning in His Grave These Days!!

Today, there was a guest lecture organized in the Odette School of Business and some of us enjoyed it more for its philosophy behind the premise of the thesis rather than the thesis and its validation which had left many questions unanswered but attempted to give answers which was never been part of the study. We were three (Me, Jack and Allan) left at the end after every one disappeared from the lecture and it was me who observed to my colleague Jack Freeman that present day scenario in the economic order of the US and by implication of the entire global order is in acute need of money supply. Liquidity contraction is killing several otherwise robust industries. This became a real long and serious interactive and interesting discussion for next three hours or so.

Friedman was a unique economist of his genre for his views which were very much against the Keynesian views. Though he was known to be a quantitative monetarist for many but he was the one who was a leading public policy philosopher true to the name of political economy. US economy is in turmoil because there is no liquidity. Corporates find it difficult to remain solvent in pragmatic sense. Where has that money disappeared? Was that money at all existed in first place? Friedman argued all through his life time that state should not interfere in the autonomic function of economy by introducing controls or increasing participation through regulatory regime. He was a true laissez faire brand of economist though he was an advocate of taxing people income at source. Of course, he regretted it later on.

I will answer the first question as best as I can do. Liquidity is not all the time liquid. Today's scenario is most compelling evidence of this assertion. Corporates in the first place used to park funds in securities which had highest liquidity in the first place. Mostly these were the short term investments in Wall street. bankers used to be highly liquid because earnings were abnormal accruing from sub prime mortgage financing. Excess were finding theirs way into Wall street. Every one was happy because DOW and S&P were spiralling to troposphere. Big institutional and individual investors were ga-ga over the vibrancy of the economy. Money was every where to see. Money was easily available through placing stocks as collatoral.

Contd.

Management Education Graduates in Dillema

With the breakdown in economic order, the worst hit individual, other than the stock investor, is the potential management graduate in 2008 and onward. The stories of not honoring the offers given to fresh graduates are spreading like wild fire. I am not too sure about the veracity of such stories but feel that such actions on the part of employers can be a valid knee jerk reactions to the current imbroglio. On positive front, I have read it with interest that fresh international students are coming in flocks to US despite all this economic meltdown and all. I know that international education plays a significant role in shaping one's career even when far superior institutions might exist in students' own country. Many of these international students are, possibly (emphasis added) those who could not manage to get into those elite institutions for any reason. There are some who are children of high and mighty, neo rich and like wise.

I was told by a colleague of mine that a kid of top IT tycoon in India could not get into Indian Institute of Technology admission process, got ultimately into the top private school in US (Stanford in particular.). I do not doubt the truth behind this story as entrance exams have been made such that getting into these Institutes will not be easy for any average student.
People often ask me whether finance is still a viable option for an MBA after knowing this all in USA. My answer to every one is very simple and it is that finance people who made this mess and it will be finance people only will help it to clear up. Finance is not a function which should be preferred all the time like all other functional specializations. It was the high paying and cozy life style of finance executives working with hedge funds and other investment bankers made every one to get attracted to this speciality. There are several other choices to opt for like manufacturing and operations, quality, assurance, marketing, human resources etc.

Now, its my lecture time. Bye

Jagdish

What is Going On Around Us, These Days?

The economic scenario all over the North America is gloomy. I do not see any beacon of hope, at least for near future. All the three auto giants from Motown are camping at the hub of power with a begging bowl! AIG feels relieved as tax payers money will go to them so as to take some extra risk to make extra bucks. They have not yet stopped living in luxury despite getting stick from every where. I do not know what is lacking in these modern day executives which stops them from learning.
European union too is not better off. Japan has entered into recession without much ado. India is struggling hard to stave off the global impact. We all know that Indian economic system is relatively new entrant to the global capital markets and therefore, possibly the impact will not be so severe. Pakistan is worst hit not because its economy was deeply into global financial system but because the mandarins in Islamabad (should I say, in Rawalpindi army camp) never placed US$s received for terror policing in the place where it should have gone. Now, major chunk of that foreign currency is already out of Pakistan courtesy, local 'hawala' (an illegal way of siphoning off money from one place to another.) and foreign exchange dealers. Alas! Pakistan is on road with a begging bowl to pay loans taken against sovereign guarantee.
Employment (unemployment rate) is expected to hover to double digit in next couple of months if GM brand is made to collapse under its own load. People will become unsettled with such changes fast entering into their life style. Obama, the President elect will be cradled with challenges, one after another. He is to set right the allegedly done wrongs by his predecessor. It will be a test of his Adrenalin.

I hope that tomorrow's news on CNN will not be further depressing than what it is today.

Jagdish

The Mission of This Blog

Hello and Good afternoon from Windsor, the Canadian auto city in Ontario. It is snowing lightly outside with temperature hovering around -3 degree centigrade.
I want you all to post your blog messages which are of common interest but very much apolitical in content and context. We can talk on umpteen economic, environmental, employment and other related issues facing the city of Windsor in particular but Ontario, canada, North America and the World in general.

I will have to edit/remove any offensive language or foul comments.

I hope that you will enjoy reading and writing on this blog.

Thanks aand have a good day

Jagdish