Reflections of Rajaram Bojji

It sound s crazy but our minds would like to believe otherwise. It is interesting to think like olden days detective investigating a "crime", who benefits at the end of this cycle of trade imbalances? Fall of dollar is equivalent to the 3rd world war, and may be I feel the end of cold war was bad-- it removed a constraint in the system. Unconstrained unipolar world, led USA to indulge in free unlimited consumption, seeking the inevitable constraint, and now the impact of hitting the constraint could be the economic center of gravity will move to China. Dollar may lose its position as the reserve currency, if more nations start trading oil in non-dollar terms, and year over year dollar investments by others get dried up. The upheaval will certainly have collateral damages. Only rich fat cats took advantage of the stimulus because, only the same rich fat cats who failed the nation, remained in charge of distributing the largess. Darwin's theory works; self-preservation come...

I don't understand why the finance gurus still talk of derivatives as a natural corollary of financial system's evolution. The simple bench mark for any innovation should be, you cannot create more value than the available wealth; by perception based floating papers, using further such virtual paper to create even more of the same variety, we create a virtual realit of wealth. It is a hidden game of similar to the same scams perpetrated in earlier days of banking too.It is only Warren Buffet who stated in no uncertain terms that the derivatives will prove to be the weapon of mass destruction for the financial system and got his company out of it. It is time that experts like Rangarajan come out strongly and condemn and ban the derivatives approach in financial systems for protecting the economy from another future down turn. I am glad at least Dr Reddy, our former RBI Governor in a talk with me did agree that considerable risk and inadequate transparency prevail in quite a numb...