Coming of Age

Time just flies away. Things have never been the same. We are in times where epoch making events are shaping the course of future. Events such as liquidition of Lehman , failure of AIG and sell out of Merill Lynch do not normally have to be looked from the side of what caused it. The more pertinent question is "What does it Augur for the Future of Financial Markets". Will it bring down curtains to an era of unregualted financial market or replace this by a system of regulation as has been prevalent in the UK. A recent statement by the top bankers of UK, reiterated their immunity to the financial meltdown in the US. As the finacial markets are chain linked , breaking of one in the series can lead to demise of the whole system . Infact with super volatile derivatives , which Warren Buffet describes as "Recipe for Disaster", it is no surprise that more cards will fall as time unfolds and the magnanity of the problem is just anybody's guess.

As a brief for the uninitiated , Lehman liquidation has shaken the foundation of investors. If people from worlds best B-Schools cannot manage an Investment Bank,questions are being raised about the efficacy of the system. One reason is that the system has become so much regimented from top to bottom that dissent is just not accepted as part of the decision making process. The most critical part of the business success , the human element has been relegated to the backbench,playing subservient to process orientation which just does not account for the wide array of economic situations.

The need of the hour to once again bring democracy in the organizations. Conformance to orders , decimation of challenging superiors is a just not acceptable when the investors from different spheres of lives have pit in their money.

This is also a lesson for Indian Regulators of what they need to imbibe in their system. To let a system be solely self regulated is letting another crisis unfold. We cannot rely on the capitalists for taking holistic view of things. It is for the regulator to decide what is good for the country and let things churn out accordingly.It has happened in the past that the banks in ndia have gone bust, but their capital base being so small did not cause media ripples. Now that the economy is growing , a rudderless ship will lead to devaition that will be too much to regulate in the future. 

The event is an eye opener and the regulators in India . It is just that are they "Awake"!