in deep existential crisis..

A Journal by Sara

Please bail me out – By America

 

If at all we had moved away from Indian culture in all these post-industrialization decades, we would have been hit by a crisis harder than America! Had we not believed in simple economics and social esteem, we would have been hit harder than Americans!

Really? What saved us from this worst crisis? Indian Culture?  Our belief in old money management technique? This is what Thomas L. Friedman of NYTimes, who on a visit to India, finds out;

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Leave it to a brainy Indian to come up with the cheapest and surest way to stimulate our economy: immigration.

“All you need to do is grant visas to two million Indians, Chinese and Koreans,” said Shekhar Gupta, editor of The Indian Express newspaper. “We will buy up all the subprime homes. We will work 18 hours a day to pay for them. We will immediately improve your savings rate — no Indian bank today has more than 2 percent nonperforming loans because not paying your mortgage is considered shameful here. And we will start new companies to create our own jobs and jobs for more Americans.”

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Shekhar Gupta argues that, no Indian bank today has more than 2 percent nonperforming loans. I think what he says is the output of the past Bank strategies and not reflecting the recent outlook of the banks. This shift in strategy is obviously due to the outrageous growth pattern witnessed in the last few years. Hence, India should now be afraid whether it would move away from its culture as mentioned above and wont hang his head in shame in the future if mortgage could not be paid. This could be attributed partly to the ease with which an Indian gets loan, and mainly to the reason how willing the banks are, to splash out cash bypassing the basic question of repayment capabilities. I believe India is witnessing this new pattern where there is more money on offer and more people forked out of that brimming Indian Culture.

Obama’s administration has stated that institutions that received bailout money would be restricted from hiring high skilled immigrants on H1B visas; this could result in employing the US nationals leading to generation of high skill jobs, but might even hit back offsetting the advantage of globalization. Simple, you don’t risk your long term growth by throwing out the best minds. Then they might find a place where their innovations have respect.

Thomas L. Friedman opines to,

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Bad signal. In an age when attracting the first-round intellectual draft choices from around the world is the most important competitive advantage a knowledge economy can have, why would we add barriers against such brainpower — anywhere? That’s called “Old Europe.” That’s spelled: S-T-U-P-I-D.

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February 16, 2009 - Posted by | Economics, Issues, Policy/Strategies, Politics

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