In Hindi there is a saying ‘Bali ka bakra’ – it is the goat which has to be sacrificed. There is no sacrificing of the lion or the elephant, but just a goat. We saw it in the case of the Adag -Reliance communication telecom scam also. Everybody knew who was the beneficiary. He was […]

Read More →

Why is it that in the case of Satyam and in the world wide mess it is largely the equity shareholder who is losing? Welcome to the world of moral hazard. When you lend money to a bank (which may be insolvent even as you are lending) or to a country (which technically cannot become […]

Read More →

Regulators around the world like to use words like “bailout” in order to help failing institutions. Which kind of institutions get a helping hand? The honest ones? The fair ones? You got to be joking. It is friends and relatives who get bailed out! Freddie Mac and Fannie Mae kept telling the whole world that […]

Read More →