The In thing to do in the Financial services business is to talk about financial literacy. Regulators, politicians, media, investors, venture capitalists……all of them love it!
However, the following para (extracted from a book) is worth reading
“Financial literacy is a sick joke Wall Street plays with investors and politicians. Even best-of-intentions programs never work because they’re designed by and biased in favor of Wall Street as research by Nobel economist Daniel Kahneman and his disciples proves. Literacy advocates assume, erroneously, the human brain can retrain itself to make rational decisions about money. Wrong. Wall Street is a casino, Main Street always loses.”
What is the problem in the financial service industry? and of main line politics?
Special-interest dominated politics will never “rethink economics.”
How about “redesign global governance?” No chance. Conservatives demand less oversight, free markets, a Reaganomics revival. It’d be un American to lose the dollar’s reserve-currency status.
“Rediscover soul?” Never in today’s rigid hate-filled ideological-divided political wars.
Nor will Wall Street ever surrender its right to keep manipulating “financial literacy” programs to their advantage.
What has happened in Wall street?
Moreover, since 2008 Wall Street has further hardened its monopoly over the American economy and government, while further degrading capitalism, democracy and the rest of America.
Now translate all this to the Indian scenario. The common man has been ripped off by the life insurance industry, the mutual fund industry and been scorched by the brokerage business! Given the hidden charges by the banking industry – which part of the BFSI space can he trust? Search me.
If he has left the investing space (and gone to gold and real estate) can we blame him? No.
Should he come back? are we at the pits? Search me!
Not only do we not have FII buying, we also have FII selling. Mutual funds and life insurance sales are just not enough to take the markets up. Mutual funds want to create charts, graphs, etc. to show how if you buy today over the next 5 years you will make super duper returns.
Hey Prashant Jain said that at every fall – and he will be proved right only when the sensex is at 30,000 or make it 35,000 – to pay for the charges!
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