Recession must have not happened. Dont you agree?

It rarely happens that everybody across the globe is victim of a single thing. And this occasion happened last year when the entire world was under Recession. Some of the world’s largest banks were closed, some declared bankruptcy. Millions of people lost jobs. People committed suicides as they could not cop up with the fact that they don’t have a job and they can’t support their family. While I was reading all these news about recession, the only question that kept flashing and teasing my mind was


How could this happen?

I was just not able to accept the fact that such a thing called Recession has hit all of us even though we have so many brilliant analysts who are paid millions as consulting fees. How is it possible so many intelligent people didn’t see what was coming to hit of all us and in case they did see probably they did nothing to stop it. People say, there is a liquidity crunch, common man doesn’t have money and so there is Recession. I wonder where did all the money go? Has it got evaporated? Has somebody burnt all the currency? Of course not. There is a group of people who made money in such a way that technically the money got evaporated; the money got lost; the money got buried. And in fact, the people who did this are the only people who knew what was coming. But they didn’t care as they were for sure making money…huge money.

So the question is, how could they cheat the system.

We have various audits, numerous quality and control certificates, numerous agencies authenticating books of firms periodically. How could the recession was not avoided?The answer is simple.

We have rules and the rules were followed just for the sake of it. They were never followed in their true spirit. I can give a few more examples .

Most of the organizations provided Medical Insurance for its employees. And most of the time, it is least of the people with the least income and highest for the people who have most handsome pay packages. In true spirit, the provision should have been such that the least paid should have the highest insurance as he/she is the most vulnerable to a financial crisis in case somebody from his/her family falls sick whereas the highest paid can always afford the expenses.

Another fine example where rules have been broken ruthlessly is in case of the IT Giant Satyam computers scam by its founder. Millions of people employed were in soup. Millions lost by stakeholders.

In short, I want to say is that, having rules, processes, audits will not help anybody except for the people who are setting them until the rules are followed in their true spirit.

India's 60% population is considered to be young which includes you and me. So lets start a new phenomenon and follow the rules in its true spirit, keeping the soul of the rules alive and make ensure recession never hits us again...

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4 Comments

  1. An example where rules are not followed in spirit...http://www.moneycontrol.com/india/messageboardblog/message_thread/2867109

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  2. A very interesting article Sid. . recession is a vicious cycle n is part n parcel of the economy. Anything which rises, is bound to fall, the only thing which matters is the intensity with which it falls.But yes, a rule is a rule and it must be followed in its true spirit. .

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  3. Sid, just one comment - you started your post talking about the Recession and you ended it making readers pledge about following rules in their true spirit. Hope you got my point.

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  4. Yes...I am trying to say that because rules were not followed in spirit, recession happened.

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