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" Its all in the Keynessian Theory, Roy"!!!! Professor Screamed!!!!
" Who Keynes"? Neo asked the right side chick with sleepy eyes sitting in the extreme left corner of the class room!!!
Neo still remembers his utter struggle to survive macro economics classes back in his MBA; not only macro economics went over neos little head but also the professor made it soo interesting that neo could hardly wake in the classes.
" Macro economics is all about holding the right set of assumptions forthe right model,be it the multiplier concept or the theory of international trade"!!! the Professor yelled again.
" wow ", neo asked, " Than Sir, who decides the right assumptions"? Everyone in the class looked at Neo for a second including the professor!!!!
"After a small pause, The professor commented, " Well asked," Roy, But We will get back to it later on", now concentrate on Keynes Please."
Neo never got the answer in the class and sooo macroeconomics, as previously said, ruined Neos first few important dates with chicks before the exam.
Neo enjoyed a great 2007 chilling out with friends, group studying, playing , roaming , and enjoying life; as if, you name it, neo did it!!!! but that very question in the macro economics class still remained unanswered!!!!
But than 2008 summer, Neo started getting answers to his question as Neo encountered a new term " recession" not in his class room, but this time in the real world !!!!!!!!!!!!!!!!!
Well starting of placement season in B schools is rather fun. you gotto see the glow in the faces of students, more and more people in libraries, loads and loads of chatting around the canteen side, rumours flowing like bee humming around ears; 10 lakhs it is, no ! no ! bloody, 10 lakhs they gave last to last year; its 15 min this time around!!!!!! But this time , it was different. Industry started showing ominous signs and faculties started introspecting things may be different this year.
Amidst all these happenings, Neo was passing quality time bunking classes, roaming with chicks, occassionally jumping around across hill stations of south, and doing what he enjoys doing best " Sleeping"!!!!! BUT one fine morning, the turnaround started; neo opened ibnlive.com as a regular routine, but this time the headline was something unexpected!!!! in red bold letters news started flashing " END OF WALL STREET? LEHMAN BROTHERS CRASH"!!!!!!!!!!!!!!!!' whoe,' neo uttered, " whats coming next now"?
What followed has been a sad sad story which Neo has no guts to discuss. Everything turned upside down. Sequences of unfortunate events continued to occur and their cascading effect destroyed the financial bigwigs, wall street came to a spot of bother!!! Automobile majors of The Great Detroit were shattered, share prices plummetted everywhere!!The great money making Europe could also feel the heat!! In India, the dream Growth was over and out, in 2 months, Share markets crushed like a pack of cards. We all were counting the numbers, sensex plummetted from 21k to 15k, people introspected, this being the lowest; but more and more FIIs running out with all money proved them wrong, it continued going downwards, from 15k to 12k, from 12k to 10k and lesser. Everyone across the world was shattered. Industrial production for the 3rd quarter and 4rth of 2008 went down like anything!!!! what followed was lack of funds anywhere and everywhere. Investors came to roads. Dalal street became empty. Dow jones felt the heat!!! no capital, no money, no positive introspection across the world markets!!!! For a developing Economy like India, things started falling flat on toes, with Oil prices touching record high, Inflation never seeming to come down and the world economic crisis at its peak. In US and UK, people saw record number of job cuts in the last quarter of 2008.
Well, for MBA student like us, we were listening new new buzz words in the name of " downsizing," "bail outs","flat outs ," etc every day. Neo still remembers in that particular month , four or five companies came to recruit and guess whats their most favourite GD topic : "economic slow down and the impact on India"! as if the recruiters wanted to know from us whats coming next. Trust neo, the batch of 2008 is a master at economic slowdown issue. From Dow jones capital depreciation to China's automile growth deterioration, we have recited it all infront of the recruiters like bible and Geeta.
Now where lies the answer to Neos humble back bench question in the sleepy macro economics class? The answer is pretty much straight forward!!!!!!!
Economists are dull people, they can only hypothicate or predict; but they cannot provide the exact scenerio as their is no way by which any one can decide upon the exact models because there are vague and clumpsy assumptions always. But what can we do learn from the " recession" is the virtue of saving or holding rather than spending and also to relook into the unregulated capitalism concept propounded by the West!!!! We always need to remember one thing " economics is a like an unbiassed coin, where there are two unequal sides influencing each other", like on one side if we promote LPG ( liberalisation, privatisation and globalisation) policies, knowingly or unknowingly we are favouring the unequitable distribution of income which results in mass and class divide. Let Keynes be reigning in his economics book, understand him, but think twice of all other aspects before following him!!!!!!!
lol enough of pot boiling words....time for Neo to sleep.....life moves on ............!!!!!!!!
