For the last 4 years the genius Fund managers, Investment Bankers and Rating agencies forgot their role and befriended Mr. Greed and went on devising method after method, product after product and scheme after scheme to make themselves rich. However apart from the top honchos most of the middle level managers have ended up jobless and are now pondering over their future. The sad part however is that they have taken down along with them millions of general public who believed in the wisdom of the Investment Bankers and the credibility of the Rating Agencies

Thanks to Greed,we have learnt a few terms like Stimulus, Recession and Bailout.These words have become an integral part of our life in the last few months. Turn on the Television or pick up any newspaper you will for sure hit upon at least one of these words. It all started off with USA and its 700 billion dollar bailout, EU followed with its own 130 Billion Euro Stimulus package, Britan is planning for a 100 billion dollar package and China is planning for a massive 586 Billion Dollar Stimulus package, India too on its part is considering a 10 Billion Dollar Stimulus package.While the devloped countries are doling out these packages to prevent recession, the Developing world is providing the stimulus to make sure that the growth is maintained.

All of a sudden a Billion looks like a very small amount :).I have got one doubt about these stimulus packages and their long term effects. I might sound very stupid, for my knowledge on economics is nothing great, but i still would want to put forward this doubt and get it cleared.

While I cant agree more on the fact that we do need stimulus as tightening Interest rates and sucking out money from the system is going to dent the confidence ( assuming some of it is still left) more and create further panic, I am still not sure as to how the economists and the central bankers are planning to tackle the situation of excess money which will be the case when the economy turns around.

Raising interest rates and sucking out surplus from the system, seems to be the obvious way out, but i have got one question, When things start to go well, will the Financial Organisations allow the Fed or for that matter the other Central Banks to raise Interest rates and dampen the good mood? Agreed they might not be as powerful as they once were, but still do the Governments have it in them to go against powerful Corporates and raise interest rates and make sure that excess money is sucked out of the system thereby preventing the creation of an Inflationary environment and an asset bubble?

The fact that too much of cheap money was available was the biggest reason behind the rampant Inflation which the world experienced and the Sub Prime Crisis, now will we see Central Banks learning from their mistakes or will "History Repeat Itself"?

P.S: The whole of India must thank Mr Y.V.Reddy the former RBI Governer of India.His conviction and his boldness to increase the Interest Rates notwithstanding the directions from Finance Ministry and the other Intellectuals has protected Indian Banks and Finacial Institutions from entering the Sub Prime Game. Hats off to You Sir!!!