Twenty first century, the age of immense knowledge in economics, tremendous know how in banking and prodigious power in forecasting. In such an enlightened era, how from nowhere we find ourselves stuck into a quagmire of economic crisis and looming recession? There were warnings of the mounting crisis from none other then the head of European Central Bank but all such voices fell on tin ear in an environment of frenzy and callous dash for erecting a higher wall without giving any consideration to the strength of its foundations.
This wall of lending grew higher in a bid to touch unrealistic heights when cracks appeared and the very foundations collapsed, triggering a domino effect that began to raze the entire financial Great Wall stretching the whole world. Instead of fortifying its foundations, efforts are being made to fill cracks with the borrowed mortar to cede the next fall form the very day of its repairing.
United Kingdom in an attempt to attenuate the rising tide of the economic crisis and guard British entities form the devastation of this tsunami, is acting to contain the fall out by proposing bills of fundamental change in the way system operates. As this is UK and US who had been the chief architect of the global financial system, having today’s Banking as their corner stone, the same proponents of Capitalism and free market’ are struggling and reversing their own established principles by extreme interventions and takeovers.
Though this system brought with it sea change in the way today’s world operates, it exposed the fissures it created within itself due to the unbridled lust its operators marshaled to extract all from none. World financial crisis which has its provenance from the US sub prime bubble burst has crippled not only the world’s largest economy but has jolted the crest of global financial system.
All those entities and enterprises who were one way or the other related to mortgage fiasco has bore the brunt of this global shock, as a result the economies are tumbling, list for the emergency rescue plans are on the rise and the likes of IMF and world bank are struggling to get hold of the faltering situation. In this hour of turbulence and bewilderment, states around the world are pondering to rectify major policy snags to cleanse the system of the follies and preposterous trajectory that it gained in craving for precarious profits.
What makes it important? Economy contaminated, debts and deficits escalating, spraining military, image tattering, all but accompanied with the emergence of a new league of Global contenders. Is the American capitalism on the recede, do we see the fading American way of life’ the demise of American dream, is the prodigious military might losing its edge, are the very foundations of democracy, freedom and justice debauched, has really the Global American leadership paled, is this the emanation of era of vacuity or does there lie hope of return anew?
Thus the bailout package ‘last in line of Bush legacy’ bears importance not only from the economic recovery perspective but by shoring up the financial vessel’ it goes a long way in retaining the unchallenged posture of USS enterprise globally. It holds importance as it allows continuance of strings of recovery initiatives taken year back, in the absence of which the policy posture would not only lose its luster but the effort being applied to buttress the confidence would rather lose its very ground.