As long as "I", within us is not secured we will fall into traps (something similar which Madoff seems to have done) as depicted above. So, here I discuss, why its difficult to define the most closest of persons "I"
Human – A soul, always attached to body
Though, the above line seems spiritual but this is a fact that we can’t deny. The market forces tend to play on this. That’s the truth which we can’t shy away from. This crisis is testimony to the belief that moral and spiritual values are needed as a civilized society. The “Politician”, the “investment banker”, the “CEO”, the “Home-Loan borrower” the “Car-Loan Borrower”, the “media-moughal”, the “media-man”, the “money over job”, the “show-off-circus in parties”, the “false-ego” and “pumped-proud” , who are these , have you not seen some of these faces, yes we have and believe it or not I and you represent this segment. Though, there might be argument as that we were forced into this and for most of us had no option, but whatever be the reason, this crisis has shown how combined sense of immoral ambitions can lead to catastrophic-crisis.
Human – social contagion
The car, the home, the holiday trip, isn’t based on our want but derived from our wish to be at par with society. This is a contagious disease which spreads from one body to another and then becomes an epidemic driven by card or cash. The loans acted as a carrier agent to this epidemic, it had no national or religion barrier it spread unabated. I know, it’s difficult to attain immunity to this disease, and slowly need became greed, as can be seen from the fact people bought multiple houses, multiple cars travelled in planes when trains were cheaper. The market while portraying “Customers, is the King”, slowly took control of the kingdom as customer got enticed into their marketing models to believe in those figures and became “Slaves to Market”. I know many of my friends, who are slave to new movies, slave to new cars/bikes, slaves to costly parties. However, the market-makers didn’t understand their kingdom as well, as they couldn’t for-see a civil war. The tools (Providing easy loans and creating financial product out of that) they used to rule the kingdom were not adequately designed, as they belied all economic logic. Of all, the simple logic that by funding your customers you can’t continue to finance yourself till perpetuity, as market can’t sustain financially weak customer. So, these actions of the market-movers financially weakened the customers and once customers realized this, as every weakness creates panic this was no different and this panic just created havoc. The only immunity to this kind of spiral-force of social-contagious is building a wall of moral values that can’t be destroyed so easily. Also, let’s stop blaming the system, the politicians as it’s our behaviour which has made this system workable and as long as we behave in such self-driven manner, we can’t force the system or politician to be society-driven.
Learn “Values” – Not just “Valuation”
Our system of education has made us to perform financial valuation of a project, monetary valuation of a job, face-valuation of a partner but some-how it has escaped to reinforce the values of a human. Let’s sit back and realize that we aren’t just a geometry of figure and shape, which can be tuned in gym but more than that we are a galaxy of ideas, which can be polished only by moral and ethical learning’s. Let’s invest some-time to understand the moral aspect of our being and then I am sure the entire gamut of knowledge will work in tandem for society’s well-being.
Become Owner’s - not traders
The market-economy provides each one of us an opportunity to be owners. Let’s behave like owners and not misbehave like traders. Let’s understand the basic philosophy of market-economy. In this aspect let’s remove all our thoughts of smartness to earn easy-money but more-so learn to balance risk with reward. Also, rather than earning wealth let’s focus on creating wealth. Today or tomorrow, the wealth creation will come back to us in terms of reward and reforms. However, my friends will argue that all this will go in politician’s bank, but I can say this is a self-prophecy theory that we want to continue to justify what we are doing.
The CEO’s and the market as a whole needs to define the value they want to create. Every business owes a duty towards society of generating profits in real-sense. The society, need to understand that quarterly results are check-points not the destination. This understanding will prevent manipulation of quarterly results and will also induce management’s thinking towards creating positive value. Today, management spends time and energy on showing (manipulating) income, if as a whole we mature the management will be able to do justice to their expertise and experience of driving business to next levels. For eg, car companies need to innovate engine with alternate fuel or better need to create a transportation system, which is free of pollution. That may include provision of creating an effective transportation system, as car-selling can’t go infinitely. Also, the investment should be targeted to creation of cheap transportation alternative in remote places like Africa etc. Now, the question who will invest in this, investors need to be smart enough to understand the value creation of such moves rather than value destruction by marketing-moves of providing loans. Such investment can never fail as they would today or tomorrow will create imperishable values which generations can benefit from.
The world is still stagnant in majority areas of Asia and Africa, the earth-quakes still sends tremor shocks to the spine of world, the terrorist still create unholy-spirit at holy-places, the world still needs schools to educate so many. When, the world is still so much unexplored, let’s invest in something which will create a sustainable value to the world rather than investing in a model whose figure will distort as soon as the make-up clears of. Let’s mould the world and not distort it.
Fight for acquittal not a bail
All the measures announced of providing dollars to the sick segment is defined as “bail”, that means still the case will linger on. As a society we will be in prison of such distress again and again, as long as we don’t rectify the root-cause. The evidence is straight in our face, the example of Madoff who siphoned off $50 billion not by force but by idea which was based on the same simple belief “Getting Rich is as easy as pressing button”, thus as long as we don’t take corrective steps individually, system will never be full-proof. The debate will go on about “V” (We) or “U” (You) shape depression but currently to me it seems a “I” (I) shaped. Not only by shape, but also by its meaning, until “I” within is defined properly, we will continue to slide down, any step until then will just be a stop-over to the next downward slide. Also, this shape demonstrates that it is a tough-track to go up and easy one to slide-down, but once scaled up to the roof, its more stable than any of “U” or “V” model.
This requires us to come out of “Prisoners Dilemma”, this dilemma basically prevents the first-mover to consider a step for better outcome for everyone rather than it forces the first-mover to take a step which is zero-sum game for all. However, we all need to come out of this dilemma. It is an interesting dilemma, would suggest you to just look through Wikipedia for this.
I am also currently in debt and hence, I would end this unusually long blog with a Sanskrit Shlok:
Runa rogadhi daridryam ye chanye hyapamruthyuve,Bhaya klesa manasthapa nasyanthu mama sarvadha
This means, always destroy debts, diseases, poverty, Untimely death, fear, sufferings and mental turmoil. Doesn’t this in effect translate our action-item for business?
Moving ahead, permitting time, I will try to analyse more details of the stock-market as I want to contribute my bit towards creation of a humanly market and not a bullish or bearish market.
I will summarise my all observation in the following lines.
everything as scarce as oil can be cheap,
human-virtues can never dip low,
the car-paint, house-distemper will lose shine
strength of hope will forever-glow,
crops of cash will damp in flood of fraud
Confidence of conscience will ever-grow,
Well of fortune, lake of luck will dry
will of mind, will ever-flow
Though, the above line seems spiritual but this is a fact that we can’t deny. The market forces tend to play on this. That’s the truth which we can’t shy away from. This crisis is testimony to the belief that moral and spiritual values are needed as a civilized society. The “Politician”, the “investment banker”, the “CEO”, the “Home-Loan borrower” the “Car-Loan Borrower”, the “media-moughal”, the “media-man”, the “money over job”, the “show-off-circus in parties”, the “false-ego” and “pumped-proud” , who are these , have you not seen some of these faces, yes we have and believe it or not I and you represent this segment. Though, there might be argument as that we were forced into this and for most of us had no option, but whatever be the reason, this crisis has shown how combined sense of immoral ambitions can lead to catastrophic-crisis.
Human – social contagion
The car, the home, the holiday trip, isn’t based on our want but derived from our wish to be at par with society. This is a contagious disease which spreads from one body to another and then becomes an epidemic driven by card or cash. The loans acted as a carrier agent to this epidemic, it had no national or religion barrier it spread unabated. I know, it’s difficult to attain immunity to this disease, and slowly need became greed, as can be seen from the fact people bought multiple houses, multiple cars travelled in planes when trains were cheaper. The market while portraying “Customers, is the King”, slowly took control of the kingdom as customer got enticed into their marketing models to believe in those figures and became “Slaves to Market”. I know many of my friends, who are slave to new movies, slave to new cars/bikes, slaves to costly parties. However, the market-makers didn’t understand their kingdom as well, as they couldn’t for-see a civil war. The tools (Providing easy loans and creating financial product out of that) they used to rule the kingdom were not adequately designed, as they belied all economic logic. Of all, the simple logic that by funding your customers you can’t continue to finance yourself till perpetuity, as market can’t sustain financially weak customer. So, these actions of the market-movers financially weakened the customers and once customers realized this, as every weakness creates panic this was no different and this panic just created havoc. The only immunity to this kind of spiral-force of social-contagious is building a wall of moral values that can’t be destroyed so easily. Also, let’s stop blaming the system, the politicians as it’s our behaviour which has made this system workable and as long as we behave in such self-driven manner, we can’t force the system or politician to be society-driven.
Learn “Values” – Not just “Valuation”
Our system of education has made us to perform financial valuation of a project, monetary valuation of a job, face-valuation of a partner but some-how it has escaped to reinforce the values of a human. Let’s sit back and realize that we aren’t just a geometry of figure and shape, which can be tuned in gym but more than that we are a galaxy of ideas, which can be polished only by moral and ethical learning’s. Let’s invest some-time to understand the moral aspect of our being and then I am sure the entire gamut of knowledge will work in tandem for society’s well-being.
Become Owner’s - not traders
The market-economy provides each one of us an opportunity to be owners. Let’s behave like owners and not misbehave like traders. Let’s understand the basic philosophy of market-economy. In this aspect let’s remove all our thoughts of smartness to earn easy-money but more-so learn to balance risk with reward. Also, rather than earning wealth let’s focus on creating wealth. Today or tomorrow, the wealth creation will come back to us in terms of reward and reforms. However, my friends will argue that all this will go in politician’s bank, but I can say this is a self-prophecy theory that we want to continue to justify what we are doing.
The CEO’s and the market as a whole needs to define the value they want to create. Every business owes a duty towards society of generating profits in real-sense. The society, need to understand that quarterly results are check-points not the destination. This understanding will prevent manipulation of quarterly results and will also induce management’s thinking towards creating positive value. Today, management spends time and energy on showing (manipulating) income, if as a whole we mature the management will be able to do justice to their expertise and experience of driving business to next levels. For eg, car companies need to innovate engine with alternate fuel or better need to create a transportation system, which is free of pollution. That may include provision of creating an effective transportation system, as car-selling can’t go infinitely. Also, the investment should be targeted to creation of cheap transportation alternative in remote places like Africa etc. Now, the question who will invest in this, investors need to be smart enough to understand the value creation of such moves rather than value destruction by marketing-moves of providing loans. Such investment can never fail as they would today or tomorrow will create imperishable values which generations can benefit from.
The world is still stagnant in majority areas of Asia and Africa, the earth-quakes still sends tremor shocks to the spine of world, the terrorist still create unholy-spirit at holy-places, the world still needs schools to educate so many. When, the world is still so much unexplored, let’s invest in something which will create a sustainable value to the world rather than investing in a model whose figure will distort as soon as the make-up clears of. Let’s mould the world and not distort it.
Fight for acquittal not a bail
All the measures announced of providing dollars to the sick segment is defined as “bail”, that means still the case will linger on. As a society we will be in prison of such distress again and again, as long as we don’t rectify the root-cause. The evidence is straight in our face, the example of Madoff who siphoned off $50 billion not by force but by idea which was based on the same simple belief “Getting Rich is as easy as pressing button”, thus as long as we don’t take corrective steps individually, system will never be full-proof. The debate will go on about “V” (We) or “U” (You) shape depression but currently to me it seems a “I” (I) shaped. Not only by shape, but also by its meaning, until “I” within is defined properly, we will continue to slide down, any step until then will just be a stop-over to the next downward slide. Also, this shape demonstrates that it is a tough-track to go up and easy one to slide-down, but once scaled up to the roof, its more stable than any of “U” or “V” model.
This requires us to come out of “Prisoners Dilemma”, this dilemma basically prevents the first-mover to consider a step for better outcome for everyone rather than it forces the first-mover to take a step which is zero-sum game for all. However, we all need to come out of this dilemma. It is an interesting dilemma, would suggest you to just look through Wikipedia for this.
I am also currently in debt and hence, I would end this unusually long blog with a Sanskrit Shlok:
Runa rogadhi daridryam ye chanye hyapamruthyuve,Bhaya klesa manasthapa nasyanthu mama sarvadha
This means, always destroy debts, diseases, poverty, Untimely death, fear, sufferings and mental turmoil. Doesn’t this in effect translate our action-item for business?
Moving ahead, permitting time, I will try to analyse more details of the stock-market as I want to contribute my bit towards creation of a humanly market and not a bullish or bearish market.
I will summarise my all observation in the following lines.
everything as scarce as oil can be cheap,
human-virtues can never dip low,
the car-paint, house-distemper will lose shine
strength of hope will forever-glow,
crops of cash will damp in flood of fraud
Confidence of conscience will ever-grow,
Well of fortune, lake of luck will dry
will of mind, will ever-flow
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