Category Economy

Avoiding a Japanese Decade-New York Times Edit.

Many points have been left out.
Risk is taken by Banks for large corporations , not for small/individual borrower.If you analyse bad debts , you will find maximum percentage shall be from large/corporate borrowers.Most of the time large corporations are financed based on non economic or financial considerations.
Banks must take reasonable risk in lending to small companies and individuals for it shall generate demand and propel economy.
Cap on income or tax on income beyond a certain ceiling shall prevent social unrest and morally being paid enormous sums as in Banks/corporations is obscene
While lending care also should be taken, whether it be for small or big corporations, in determinig the repayment capacity..
Non Performing Assets should be disposed after 5 years.

America’s decade of dread

Financial decline of US in this decade is not a sudden one.It is the result of years of faulty planning and lopsided priorities.There used to be a time when middle class moved up the ladder and additional people from middle order still moved up because they had room and Govt. policies stimulated this phenomenon.Now middle class ,having moved up did not pull additional people from the same group nor does the Govt. of any help.;Govt. is busy pampering the already settled neo rich, with an eye only on the stock market, forgetting that stock market participants form only a minuscule of population.Stimulating other sectors more, if not equal to financial sector is called for.
Conspicuous consumption is to be reduced.Use of plastic money is to be discouraged.
Savings is to be promoted by offering incentives.Luxury items are to be taxed.Cap on individual income in Corporate sector is necessary.
Import is to be reduced.Above all live within means and do not live to day as if there is no tomorrow