Financial Tsunami

After the Lehman meltdown, the financial tsunami is threatening various parts of the globe... But more so, in the American corners...

At a very high level, beyond the Geo-stationary satellites ;-), I think this is the effect of osmotic pressure in a 'flat world'. When things (prices/wages) are not in equilibrium, but are maintained artificially in a steady state and trying to retain the differences as they stand.... the pressure differences can and will lead to more such tsunamis. (The pressure on the firms to perform and generate ever greater profits, in this case...)

The best way to escape the impact of the Tsunami is by staying afloat... or mobile - that's what I think I will be doing, though by my own preference.. Work in US for a while.. then, move to Asia.. then, the Europe and so on!

Anyways.. I came across this nice article that explains all the jargon behind the Lehman collapse and how these guys lost their own game. Check this out....Losing your own game

If you thought that was a bit too technical, here is another 'simple worded' version... Worst Crisis since the 30's; With no end yet in sight (Thanks Jam!)


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Investment analyst and entrepreneur Dr. Marc Faber concluded his monthly bulletin (June 2008) with the Following:


''The federal government is sending each of us a $600 rebate. If we spend that money at Wal-Mart, the money goes to China . If we spend it on gasoline it goes to the Arabs. If we buy a computer it will go to India .

If we purchase fruit and vegetables it will go to Mexico , Honduras and Guatemala . If we purchase a good car it will go to Germany . If we purchase useless crap it will go to Taiwan and none of it will help the American economy. The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in US. I've been doing my part.'

(Thanks Neeraj for sending this!)