The+IBS+Times_Decade+Issue

THE DECADE ISSUE

11TH JAUNUARY 2011

EDITOR’S DESK

- RAJAT MONGA

We are delighted to present to you The Decade Ending Special Issue. And boy, what a decade it‟s been. Christened „Decade from Hell‟ by TIME and „Decade of Change‟ by Newsweek, the first 10 years of 21st century has seen it all!

With such an eventful decade it was an extremely difficult task for us to choose one event that defined this decade. The economic recession, Barrack Obama coming into power and the rise of BRIC were all important happenings, yet no other event affected the lives of people around the world the way 9/11 terror attacks did. This according to us is the EVENT OF THE DECADE. Terrorism took the center stage in world politics as India almost went to war with Pakistan. India also saw Congress coming back to power and some momentous legislation like RTI. We give a snapshot of what happened in the world political arena.

The years gone by were a nightmare for any economists- it started with a Dot-com bubble and ended with the world economies still reeling under the worst recession since 1930. Rise of BRIC, Euro Zone and much more in the economic section.

But it was not all gloom in these 10 years. This decade saw the emergence of noncricketing personalities in India and also the tamasha called IPL. Africa and Asia came to the world stage as they hosted international sports events from World Cup to Olympics.

Technology grew exponentially. Blackberry– which was name of just another fruit at the beginning of the decade has become the most important word for people on the move.

Google is now the answer to all questions. Will smart phones, social media, cloud computing be the new buzz words which will change the way we live in the years to come?

All this and much more in this Special Issue, as we take you through the highs and lows of the decade gone by.

Cheers, Rajat Monga

EDITOR

1

TECHNOLOGY

4

ENTERTAIN

7

DECADE EVENT

2

BUSINESS

5

SPORTS

8

ECONOMY

3

POLITICS

6

ABSTRACT

9

THE IBS TIMES

EVENT OF THE DECADE– THE 9/11 ATTACKS

- RAJAT MONGA

It was just another Tuesday for James Smith, a firefighter with the New York City Fire Department, until a call from World Trade Center at 8:50 NYT* saying something about a plane crashing into one of the twin towers came. The events that unfolded in the next 2 hours changed not only his life but shook the entire world.

The 9/11 terror attacks is our “defining moment of the decade.”

The 9/11 terror attacks is They say if you have to humble an empire you need to maim their cathedrals and as the WTC burned and tumbled like a pack of cards, the world‟s greatest power was humbled and our “defining moment of the decade.”

the world changed forever. A presidential election was won, a dictator overthrown and a small country (read Afghanistan) became the center of policy making. After $1 trillion spent and two invasions by US, this event is still and will perhaps for yet another decade continue to affect the geo political affairs of the world. The US suddenly woke up to the dangers of terrorism and now you are an ally only if you help in the fight against terrorism. Pakistan became the darling of the world because of its strategic importance in Afghanistan – a country which today is in more chaos than any other point in the history of this invasion. The botched invasion of Iraq for the hunt of imaginary weapons of mass destruction split the world and US flexed its muscle to invade and oust Saddam Hussein. The power shift to the emerging markets was catalyzed by these two very expensive wars which battered the US economy. *New York Time

After $1 trillion spent and two invasions by US, this event is still and will perhaps for yet another decade continue to affect the geo political affairs of the world.

This picture of the Boeing ramming into the World Trade Center changed this decade.

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THE IBS TIMES

ECONOMIES-NOT DWELLING IN SOLITUDE ANYMORE

-SAINYAM KUMAR

When I start running the mills of my memory trying to think about one of the most mischievous dec-

ades of the recent past, the word that strikes my mind first is BUBBLE, which has been the protagonist of the decade. A concept over used to such an extent that it sounds clichéd now. The decade started with a dot com, ended with a real estate and is dropping the hints of a gold one before fading away. Although, common logic says that over-reliance on a particular asset to generate more than the normal returns will continue and so will the creation of bubbles. But, the intensity was so huge this time (real estate) that seven decades after Keynes had come to rescue the U.S. economy, we heard the word DOUBLE-DIP RECESSION again.

In an “all-so-open” world of today, you can not stop something that questioned the potential of the world‟s biggest economy from not spreading throughout the world. And when the effects started to show, the world looked like a show on silver screen. The sudden rise of the Celtic Tiger (Ireland) and an even faster taming of it resulted in the super-hero of Europe (Germany) coming to the rescue. Just when Europe was stabilizing and gaining business confidence, PIGS (Portugal, Italy, Greece and Spain) became the favorite pet of the economists. Amidst all the mess that the western world was facing, the world started placing the bets on BRIC (Brazil, Russia, India and China) also called as the emerging economies. The stakes on China had reached to such an extent that the ASEAN had talks about replacing U.S. Dollar with Yuan as the base currency.

When we think about China, the question that struck my mind was “Why Not India?” And the answer was lying in the fundamentals itself. We have about $28 billion infusion

by Foreign Investors which has led to a temporary appreciation of INR whereas Chinese markets are still dominated by domestic resources (more than 50% is held by the locals) which puts the country in a very stable position.

Having talked about the Americas, Europe and Asia, lets turn our attention to, AFRICA, a continent where the extremes range from Zimbabwe to South Africa. The former has tried all the tricks of the trade, from currency pegging to changing the currency, from monetizing of debt to dropping the currency altogether, but nothing seems to work for them. To sum up, the hyperinflation in the economy has been controlled will be a euphemistic statement. South Africa, on the other hand, seems to be leading a patriarch family where there are too many dependents for too much stuff. Keeping all this in mind, predicting the future of Africa will be like going on a blind date, who never knows how it would turn out to be.

In my opinion, the next decade will be a better treat for economists as they would see the results of today‟s action and an even better one for the learners as this is where one would delve into the depths of economies rather than just trying to gauge when will the ripple ends.

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THE DIGITAL DECADE

THE IBS TIMES -NITIN ARORA

The past 10 years were a momentous period for technology. This decade was filled with innovations, creations and revelations beyond many people‟s wildest dreams. The technology from the decade you just survived would have made Newton applaud, Tesla smile and Da Vinci giggle with glee.

We saw the height of the dot-com boom. But when you look back at it, the online world was nothing like it is today. There was no Facebook (founded in 2004) or Twitter (2007). Even MySpace wasn‟t founded until 2003. The term Web 2.0 hadn‟t been coined and most people who were online used the Web mostly to consume information. Those with the skills and resources to post to the Web were called “Webmasters.” Today, everyone with a Facebook account is a master of his or her own Web. Google started with the conventional search engine; now hosts and develops internet based products and services. With a market share of 69.7 percent (July, 2010) it is the market leader. There was no iPhone a decade ago, there was hardly anything that could be considered a Smartphone. The BlackBerry was introduced in 1999, when the well-heeled techno-savvies were carrying around flip phones.

During much of the past decade, forces behind Blue-ray and HD-DVD were battling to be the successor to the popular DVD format for in-home movies. The war came to an end in 2008 when the HD-DVD camp folded. Netflix - the DVD‟s best friend - is a strong proponent of streaming video, offering unlimited access to thousands of titles that can be streamed to computers or TV sets equipped with devices such as the Roku, PlayStation 3, Xbox 360 and some compatible TiVo models.

HDTV. It's big, it‟s beautiful. The colors are vivid and depth of field is amazing. They promised this to us about twenty years ago and we thought they'd never come through, but when they did, it bowled everyone over. If you run across an old-fashioned TV now, everything looks fuzzy and well antiquated (CRT Black & White).

Our planet not only getting smaller and flatter – It‟s getting smarter, Cloud Computing is Internet-based computing, whereby shared servers provide resources, software, and data to computers and other devices on demand, as with the electricity grid. Another technology buzz, International Mobile Telecommunications-2000(IMT-2000), better known as 3G–gives you the freedom of wireless voice telephone, mobile internet access video call and mobile TV all in Mobile Environment. Lost!!! You can't be. Not anymore. Buy one of these Global Positioning System (GPS) gizmos and you will be fixed up in no time.

I will limit myself, but before I finish I would like to throw light on what great inventions we can expect in the coming Decade, can it be wireless electricity, smaller and faster Roberts (leading to obesity problems) with increased mobility and efficiency. But truly no one knows where technology will land in next 10 years. There is no telling where we„re going!!!

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THE IBS TIMES

BUSINESS TRENDS AND EMERGING BUSINESS

- NITIKA THAKUR

With the advent of new millennium, the world has seen several new business trends supported by new technologies. Trends like online banking and multilateral trades between countries have not only changed the face rather the pace of the businesses across the globe as well. Information has never been as freely and readily available as it is today. While the price of information has dropped, the supply of data has exploded creating information inflation along with technology inflation which is helping businesses to expand with all its vigour. With a much wider use of internet, not just for information source but also for banking, business contracts, timely updates, Encyclopedia, E-Commerce have catalyzed the business flow significantly.

Corporate Social Governance (CSG) the focus of most of the Social Entrepreneurs “We want to be a company that is always getting better. A company that understands where it fits in the markets and in the society and appreciates it responsibility to both “Jeff Immelt, CEO and Chairman GE. Organizations like ACCION International, Acumen Fund are granted as the social While the price of informacapitalist group who are making a difference to the society along with making profits. tion has dropped, the supply of data has exploded creating information inflation along with technology inflation which is helping businesses to expand with all its vigour.

Outsourcing also one of the major trends in business today has led to the decrease in cost and increase in the benefits to the local companies; which have better insight of the local market and the trends. With the increase in the trade and business activities worldwide this decade has given platform to the small and medium enterprises to flourish and play an important role in emerging business models in the international supply chain.

Innovation has also been a landmark trend in this decade as this year was flooded with all technology products leading to enormous opportunities for businesses that bring together developed and emerging markets from the West and the East. International trade is increasingly recognized as a vital engine for economic development.

Electronic commerce has become a dominant factor in international trade and business. As the world trading patterns have changed, India also does not remain untouched by them. India, after being spoiled by decades of protected market now has opportunities in all the sectors be it infrastructure, retail, IT, Insurance, Energy etc. Government owned cellular companies such as BSNL are competing with Vodafone, Bharti Airtel and Reliance. Oil companies such as ONGC have Innovation has also been a made acquisitions in Russia and South America. Tata Steel has executed a leveraged buyout of landmark trend in this decCorus, a company several times its size. ade as this year was flooded with all technology products leading to enormous opportunities for businesses that bring together developed and emerging markets from the West and the East.

This decade has given Indian companies the confidence to build a global footprint. This has resulted in the increase in the foreign investments in India. Apart from the increase in foreign investments; India has survived the dotcom crash, the media fragmentation, the explosion of the interactive technologies and the Great recession.

On the whole, this decade helped India in its transition from a developing economy to one of the fastest growing economy. The developments which took place this year were tremendous and that day is not far when India will be a trend setter for the world.

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THE POLITICAL DECADE

THE IBS TIMES

-ADHIRAJ SOOD

st

Contextually in politics, the first decade of the 21 century was a time encompassing historic achievements & a galore of controversies. It was in March 2000 under the premiership of Mr. Atal Bihari Vajpayee, that an American President (Mr. Bill Clinton) visited India on a state visit after 22 years. Also during his tenure, the Defence Minister then, Mr. George Fernandes was forced to resign following the Barak Missile Deal Scandal. The Parliament building in New Delhi was stormed by a group of masked armed men with fake IDs on 13th December 2001, consequential to this act of terror The Prevention of Terrorist Act was passed by Vajpayee‟s administration.

This decade also saw Pervez Musharraf’s resignation from the post of President of Pakistan and Asif Ali Zardari (husband of Benazir Bhutto, former Prime Minister of Pakistan, who was assassinated on 27th December 2007) coming into power.

The 2004 general elections saw Indian National Congress triumphant with the single largest number of seats in the Lok Sabha. In a surprise political masterstroke, The United Progressive Alliance (UPA) Chairperson Mrs. Sonia Gandhi declared Dr. Manmohan Singh, as their candidate for the Prime Minister‟s post. On October 10th, 2008 Dr. Manmohan Singh with Mr. Pranab Mukherjee signed the „123‟ Nuclear Agreement which was a huge achievement for India.

Amongst other crucial political achievements of this decade for India were the passing of RTI act and decriminalization of homosexuality repealing of Article 377 of the Indian Constitution by the Delhi High court, was also a verdict delivered on the Babri Masjid dispute. India also witnessed the worst terror attack ever perpetuated within its boundaries; during the terror attacks on November 26 th to 28th, 2008 in Mumbai the result of a protracted hostage situation and indiscriminate killing at several iconic and prominent locations.

Our neighbor in this decade resonated to dynamic momentum all across the lands. Pakistan ensured Gen Pervez Musharraf‟s ouster from the post of President and Mr. Asif Ali Zardari (husband of Mrs. Benazir Bhutto, former Prime Minister of Pakistan, who was assassinated on 27th December 2007) came into power. Maoist movement orchestrated the overthrow of the monarchy out of power in Nepal, and Sri Lanka witnessed after a struggle of 26 years saw the end of the LTTE war in a quick and decisive military action which culminated in the death of the movement‟s leader Prabhakaran and recently Nobel Peace Laureate Aung San Suu Kyi was released after spending 15 of the previous 21 years in captivity in Burma.

Barack Hussein Obama succeede

It is an incomplete picture of global events in this decade without considering the United States of America. Under the presidency of Mr. George W Bush, the US experienced a cataclysmic shock in the incident of terrorist attacks in New York and Washington on September 11, 2001. As a result of which spawned the military occupation of Afghanistan and the overthrow of Taliban and further the war against Iraq which resulted in the death of Iraq‟s Dictator Saddam Hussein. His tenure also resulted in the longest post-World War II global economic recession resulting in massive unemployment and failure of several iconic banks and financial institutions.

George Bush as the 44th president of the US, creating unprecedented iconic history by becoming 1st African American to hold this

Barack Hussein Obama succeeded George Bush as the 44th president of the US, creating unprecedented iconic history by becoming the 1st African American to hold this Office. This marks a new beginning for the world at large, as Obama rightly said, „Change has come‟.

office.

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THE IBS TIMES

QUICK AND BETTER ENTERTAINMENT

- SANYA DHAWAN AND ARPIT AGARWAL

The entertainment industry has been under a whirlwind this past decade. The commencement of the decade saw a lot of new innovations in new methods of entertaining people. The way of entertaining people with movies has seen the most drastic changes. There was a time, in the 20th century, that a movie say Laurel and Hardy, was released worldwide on a single print. The distribution system was extremely costly. There were multiple reels generated and each theatre had to be given a separate reel to run the movie. But now things have changed, „My Name Is Khan‟, released in Mumbai, was sent to all parts of the country digitally. This has led to a huge reduction in distribution costs and hence more profits for the business.

The commencement of the decade saw a lot of new innovations in new methods of entertaining people.

If on one side, we are talking about business gains, on the other hand the business of Entertainment was making losses too. The CD was invented in the early eighties and it took everybody with a storm. Suddenly you could compact all your music into a flat disc space. That was the „it‟ way of listening to songs and watching movies till the late nineties. But the beginning of this decade saw the internet era- downloading free music and movies over the internet. Piracy is one of the biggest threats that this decade has posed. It causes a $1 billion loss to the industry every year. Did you know that an estimated 600 million pirated DVDs are sold in India every year compared to only 20 million original ones? 40% of the film business in the US is through the sale of its DVDs while in India it is barely 5-8%, thanks to piracy.

With the introduction of digital distribution platforms like direct-to-home (DTH) and Mobile TV, Indian television industry has undergone a revolutionary change. The drastic change was also felt in the music as the relatively fresh genres like Indi-pop and Indi-rock became the „coolest‟ things. Indian music has finally accepted electric guitars and drums as a part of its family. The segment of devotional songs is no more the „star‟ of ones matrix, its place has been taken by rock „n roll and hip-hop.

With the introduction of digital distribution platforms like direct-to-home (DTH) and Mobile TV, Indian television industry has undergone a revolutionary change.

The model of the film watching „experience‟ has also seen drastic changes. Earlier there were single-stand-alone large theatres and this decade saw the coming in of the multiplex concept.

Now, going for a movie does not just mean movie and popcorn, it now means multiplexes with an entire shopping experience. In the DLF PROMENADE mall in Delhi one can watch a movie, have a sushi-champagne meal at their world famous restaurant and also shop in shops like Luis Vuitton, Prada, Todds etc.

This decade also saw an entire new concept of „immediate technology‟. We now have Facebook, Youtube, which connect people all over the world and make people aware of things faster. Now that‟s called entertainment. We can not complete the talk about entertainment without discussing about the most untapped Indian gaming market. The world witnessed the rise and fall of Playstations and emergence of better consoles like Wii, PSP etc. The iPhone and the Ipad also gave people an option to store more entertainment in a much smaller space, basically making entertainment more portable.

Another segment that caught the attention this decade was that of the animated movies. Hollywood had already proved its mettle in the animations, what this decade saw was Bollywood trying its hand in this area as well. Although the venture was not so successful but then we atleast have a breeding ground for future creativity to prosper. The end result- Quicker and Better Entertainment.

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THE IBS TIMES

A LOT TO CHEER ABOUT SPORTS!

-SHILPA MALHOTRA

Atharva-Veda, says, "Duty is in my right hand and the fruits of victory in my left". These words hold same sentiments as the traditional Olympic oath: "For the Honor of my Country and the Glory of Sport” and this is what clearly reflects the spirit of sports in the world. The end of 21st century‟s first decade offers the opportunity to look back and gauge some of the newsmakers and news breakers in the world of sports. Ask any Indian about how s/he feels about Indian sports, they would go on and on about cricket. The fact that it is followed as a religion on our land we tend to overlook the spectacular achievements in the field of sports other than cricket and that is what was witnessed during the decade that led to the rise of non cricket sports towards the zenith.

The obsession with cricket led to the formation of Indian Premier League that challenged the 50over‟s format and brought the concept of T-20 on the lips of every Indian. The kind of aggression that was witnessed on the field was rarely seen in the past. India brought home the first T-20 world cup, the field saw MS Dhoni „the man with a golden touch‟ display his transcendent captaincy.

Driving the passion further, Indian team emerged as the number one test team and who would forget master blaster who hit the 14000-run mark in tests history and also became the first one to crack a double in one-day internationals. It turned out to be quiet a momentous decade for Indian cricket.

Talking about the world stage, 2008 Beijing Olympic Summer Games were a huge success where China proved her sports prowess and the strength of character of her people, spending billions on infrastructure and thus enunciating to the world that „China has arrived‟. The spectacular event raised the bar for the developing nations and that was clearly reflected in the Common Wealth Games 2010, the biggest milestone witnessed by Indian sports. The event upheld the spirit of youth from all over the world. It clearly revealed India‟s unique hospitality with the common wealth village decorated as a bride inviting 6081 athletes across 71 common wealth nations. Amidst all controversy it was our tryst with destiny and when Shera said „come out and play‟ we really did it.

While Africa revealed its unity in diversity in hosting FIFA world cup, Usain Bolt‟s victories in Berlin and Beijing rejuvenated athletics and created a new superstar who reinvented athletics culture. The world saw athletes racing towards the glory, elite shooters hitting the bull‟s eye, medal aspirants in boxing, rising stars in badminton, world champions in chess and timeless players in tennis.

Indian sports in particular have made giant leaps in the past decade but some Indian sportspersons have shown accomplishments beyond the normal norms of sports. Abhinav Bindra the ace Indian shooter fulfilled the Indian dream of an Olympic gold, Saina Nehwal the budding badminton champion broke the Chinese stronghold on badminton, Pankaj Advani became the world champion in billiards and snooker, Vijendra Singh brought boxing to the centre stage and Rohan Bopanna through his play made everyone realize that politics and religion can never be a subject matter in sports. A nation where cricket and religion sound synonymous, the rise of such sports is a clear reflection of transforming mindsets and administrations. The day will not be far when India will host even bigger international events because it is this spirit of sports that binds us together no matter how divided we may be on other issues.

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SHE KEPT SHOUTING

THE IBS TIMES

-SONABH BUBNA

Epilogue: She kept shouting: Regulate this multitrillion dollar derivatives market. It will bring down the whole financial system. She ran pillar to post, from former SEC Chairman Arthur Levitt to former Assistant Treasury Secretary Larry Summers. But she was labeled irascible, stubborn, difficult and unreasonable. She was the head of the federal regulatory agency -- the Commodity Futures Trading Commission [CFTC]. She was Brooksley Born.

The things that so impresses me about USA is the manner the parents obey their children and the government obeys the markets. Or was it supposed to be the other way round (at least in theory!). Refraining from debating on capitalism versus government control, and beginning with the premise that markets (and its participants) tend to become irrational here and there, it is the duty of the watchdog to take stock of the situation. But surprisingly, in the nation of the All Seeing Eye there is no clear watchdog to do this. So, de facto, this burden falls on the Fed, the world‟s most powerful and richest central bank. But one might, just out of curiosity, question the very integrity of this bank itself. The Federal Reserve Bank is neither government owned nor private. So who controls it? It is controlled by twelve member banks, which in turn are controlled by anyone but the government. Hence it might not be an unreasonable conclusion to say that it is controlled by for-profit banks. Ditto for Bank of England until 1946. Appointing for-profit banks to look after an economy doesn‟t sound wise.

For the crisis, the markets, the participants and the government are all to be blamed. The ever demanding nature of the markets to reward (punish) those players who can show increased (same or declined) profits Q-on- Q and Y-on –Y, forces them from going global to cooking books to financial engineering.

Year-end bonuses act as fuel for the participants. And perhaps new stock market highs, increased GDP figures and plenty of liquidity gets the party going for the economy and thus for the government. No wonder why slowdowns and recessions keep visiting the US economy with the frequency of the Olympic Games. But with the eradication of the economic boundaries, the ripples are felt at the global level.

Therefore, even the countries with the best of government control can at best avoid the sunburn but not the tanning. This interconnected web of activities calls for co-operation and regulation at the global front.

Post-Lehman, governments from around the world poured unlimited amounts of money to keep the wheels of their economies moving, and did a pretty good job to save the situation. Given what the common brethren went through during the crisis, the post-Lehman world ought to be a better place. But is the government ready to take steps serious enough for a crisis-free world? Doesn‟t look so.

The Dodd- Frank Bill, or the financial overhaul bill, finally came to live on 21 July, 2010. The 2000 pages long bill provides a plethora of new regulations and changes. The Fed is the more powerful now.

The Office of Thrift Supervision will die away and the Fed will retain supervision of community banks.

The bill allows the regulators to take hold of troubled financial service firms and break them. But isn‟t a troubled firm already broke? What good can come from a firm already half dead. The regulators can make good the costs of bailout by making firms with more than $50 billion in assets to pay a fee. Ok, they pay a fee, but how does it help avert a crisis?

The Volcker Rule restricts banks from trading with their proprietary capital and from investing more than 3% of their capital in hedge or private equity funds. Standard derivatives have to be traded on exchanges with proper margin and capital requirements. But banks can still create customized derivatives for their clients, although in reduced circumstances. A new federal agency, Consumer Financial Protection Bureau, is now supposed to protect consumers from fraud/half truths/misinformation in financial service company products (together with mortgages) by regulating these products and enforcing the rules. Banks that package assets and securitize them are required to hold back at least 5% of the credit risk on their balance sheets.

The SEC can set standards for brokers also, who give investment advice and hold them to the same fiduciary obligation requirements already governing investment advisers. Hedge funds and private equity funds have to register as investment advisers and provide information on trades.

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THE IBS TIMES The credit agencies can now be sued for "knowing or reckless" failure in assigning ratings. On the face of it, these new regulation looks ample to prevent future crisis‟s, but I have my reservations. The plethora of these new rules will make it difficult for the smaller banks to operate, while the big banks can grow bigger because they will be better in playing by the rules.

New entities and Special purpose vehicles will come to live to shift the proprietary trading business off from the main balance sheet.

These can only make things more complex and less transparent. Restricting the derivatives and the swaps business reflects the convectional wisdom on the part of the government, but looking at the ingenuity of investment banks since last 3 decades, it will not be a surprise if they find newer and never-seen before ways to take more risks. Recently, the US Congress approved of a bill whereby banks cannot charge an overdraft fee on debit cards. The banks simply renamed the facility from being called an overdraft fee, to been called a convenience fee, and the law no longer can be applied. It‟s this easy.

Governments from the world over are busy making such laws. Basel 3 will require banks to carry a 7 % core capital on a risk adjusted basis. Since Switzerland is getting extra tough with its banks, they will be keeping this figure at 10 % and an extra contingent capital (bonds that can be converted into core capital if the ratio falls) at 9 %. In Europe, the policymakers have agreed on the creation of three supranational bodies to look after banks, markets and insurers respectively.

Though all this gives a good a perception for the future, but can it hold out in the long run. The word crisis, when written in Chinese has two words in it: risk and opportunity. It is the golden opportunity for governments to do a complete overhaul. The hefty bonuses gifted to executives when the risk undertaken pays off, while limited downside risk (personally to them), have to be death with severely. All forms of speculation should be banned out rightly, and perhaps they can start with banning the naked CDS market. And when all the banks are being brought under the radar, why keep the Federal Reserve Bank out of it. Let‟s not wait for another crisis to do the same.

Prologue: If some countries were not as affected by the crisis was also due to fact that they can distinguish the times as to when the government should listen to markets and when markets to the government. They know how to regulate so thatnot only the letter of the law but also the spirit, of the law can be maintained. And when someone like Brooksley Born cries their lungs out, they do listen to them!

Abstract The article starts with the ignored warning given by Head of CFTC on the financial crisis, and then talks about the fundamental problems that keeps acting as the root causes for all crisis. It tries to give a perspective on the importance of central banks, and governments. It talks about the Dodd – Frank Bill, its importance, relevance and areas for improvements. Then it talks about other some other governments, and finally ends with some further suggestions.

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DisclaimerThis newsletter is just a compilation of news from various sources. Thus, readers are expected to cross-check the facts before relying upon them. Though much care has been taken to present the facts without error, still if errors creep in, necessary feed back will be always welcomed. Editors will not be responsible for any undertakings. The newsletter is not meant for sale and hence, no part of the newsletter should be used without the prior permission of the editorial team.

EDITORIAL TEAMADHIRAJ SOOD, ARPIT AGARWAL, NITIKA THAKUR, NITIN ARORA, RAJAT MONGA, SAINYAM KUMAR, SANDEEP ASRANI, SANYA DHAWAN, SHILPA MALHOTRA, SONABH BUBNA, SUPRIYA MAMGAIN, TANIYA BANERJEE, VASUNDHARA ARORA

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