RBI: Toeing the Govt Line, Embarassing

Tuesday, November 25, 2008

My namesake, Mr Leeladhar, Deputy Governor of RBI has asked banks to think long term and:

....recognize policy steps taken to counter the global financial crisis were temporary...
....measures are ad hoc in nature in response to a particular situation...
The banks would be well advised to ensure that their business strategies and decisions are guided by the longer-term perspective of the systemic and macroeconomic developments and are not unduly influenced by the current episode of the exceptional events
What planet are these folks on right now...is the pressure from the government so intense that responsible, independent agencies are spouting nonsense. Is it necessary to play up the outlook for the economy both locally and globally? And play down the import and impact of cataclysmic global events?

Wake up folks: Every single financial institution in the United States has cratered...every single one...say it again, Every Single One. This is not an everyday, ongoing crisis, temporary relief scenario. And the problem is NOT restricted to the United States. And India's problems are not a result of US problems...

Indian companies are over-leveraged in some sectors...excellent business managers made the classical mistake in boom times...take your eye off the business and enter new businesses at the peak. The result is a made at home problem. Yell about others all you want, it will not fix the problems we have...and ad hoc, temporary measures will not cut it.

Wake up guys...we need to act, judiciously and expeditiously...please give us some confidence by admitting there is a significant problem and the government in one voice is acting to contain the problems and solve the problems.

Sand is amazing..you can make glass from it...a lovely transparent material from something opaque that allows you to look ahead in the face of a storm.  Or you can bury your head in it.

Subscribe to Lee's Dhaba by Email

0 Post Comments:

Post a Comment

Add to Technorati Favorites

  © Blogger template Newspaper by Ourblogtemplates.com 2008

Back to TOP