NRN Association and the Road Ahead

Clairvoyance and appeasement in financial markets

There is a time and place for everything. As it were, against the systemic turmoil let us be in favor of a systemic solution, and at the same time let us keep up the steady stream of initiatives to reshape the blueprint for appeasing the anxiety and then restoring the confidence and trust in our financial and banking system.

We all understand very well when the global economy is on the cusp of recession it is real hard to bring all stakeholders to a reasonable understanding so that everybody may look toward the same direction.

After much thought, the USA found a political consensus in advancing US$ 700 billion in order to unclog the financial markets. At the same time the British government showed the right path to the EU governments by means of an agreement on a global rescue plan, injecting cash amounting up to £ 500 billion into the ailing banks in exchange for a bailout plan.

It is getting increasingly obvious that Wall Street wasted all these past years trafficking in bad debts instead of ironing out the kinks. Amidst all these cringe-making banking devices with credit in a deep freeze, it’s high time the policymakers were more inspired to hammer a point home so that the toxic liabilities would be dragged down the drain at the earliest.

In a global economy all individuals linked to a country where they belong to are interdependent vis-à-vis the rest of the world that means it has sort of a butterfly effect: when something happens in some part of the globe our activities are also affected as much as elsewhere. For instance, when there is no cash in the till in the USA, Germany can sell no more vehicles to the USA, Japan shall not be paid back for her bills of household commodities, hardware and software, and also for the machine tools. Also, China can never deliver the cloths and other requirements for daily use. That way all trades shall be brought to a standstill.

The American financial meltdown resulting in Lehman Brothers’ collapse was the turning point and is considered to be the milestone in the most telling financial stalemate since the 1929 slump.

After all nothing is permanent. Of late, on July 11, 2008 the crude oil’s all time highest spike of price was US$ 147.27 a barrel and now a days it has simply dipped down to US$ 78.61 a barrel just showing how time metes out justice!

Lastly, when the unique spirit we all possess is propped up to blossom, mankind has proven its capacity to take on and overcome any issue. It’s a spirit of hard work, ingenuity, drive, boldness and no small measure of commitment that got bestowed upon the human endeavors so as to help shape many tomorrows to come.

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