banks can be managed by any idiot

Warren Buffet : ?Invest only in business that an idiot can run because sooner or later an Idiot will?.We will need banks that can be run by idiots and that means ?Keep banks as small as possible, if you do not want to have fall like Lehman Bros of USA? Robert. J. Samuelson, Washington Post Writers group? says ?The World can no longer Rely for growth on Free-Spending Americans?
(By Dr. G. Balakrishnan, Economist-Lawyer-Writer- Independent Director of Public Limited companies in Textile sector of Gujarat, Kerala, and West Bengal) (Pages 1 ? 4)(1157) words)

USA got giddy about US economic recovery. Economic collapse is just global. No recovery plans can succeed, just because we have a serious odd mix of Local with Global, in a concept of globalization, an idea basically IDIOTIC!

We pay the price sooner every where, in the world, just because of ?cultural gaps? in thinking process ??Free spending of Americans on the one hand and on the other ?frugality culture? of others ? extreme differences.?

Every country is developed over several centuries with a kind of cultural pattern and that way even public health physical and economic shapes up.


Even H1N1 developed in Mexico has ended in Mexico and USA, but the entire world is threatened. Every day you see news reports are filed, on H1N1 deaths. You warn people to wash their hands every time he or she touches something or the other, but you do not have water supply. Then how will you wash you?re his hands, a common sense question? That means you cannot ape the other, just because it is convenient for some short time which unfortunately does not know, is it not?

T. T Ram Mohan of Economic Times (Aug 20) agrees ? ?Banks can be run by Idiots?, in one of his articles. It is equally true even the governments can be and are run by ?idiots? and in fact it is so if you closely examine how the municipalities and state governments are run, mostly irrationally. Rationalism is just failing, though you have so many Corporators, so many legislators, every where in the world.



It means one should create institutions that can be run by idiots means, ?dud? men, after all you cannot get so many thousands of ?geniuses?, to run your institution, one ?genius? alone will be like a ?sparrow? in the sky and can the sparrow make summer!


In democracies, we believe even an ?idiot? or a lunatic can manage (just because democracy means a cult of incompetence) but that is not so in dictatorships, monarchy etc, just because if the dictator is an idiot he will do things in the way he likes, and if people do not agree, the dictator will see the opposing men are exterminated, like Taliban-men, LeT-men!, just because they are devoid of any mercy.


So even ?dictators? can be idiots, lunatics like Hitler. These men do not accept any dissent to their way of working. So it is universal law idiots will rule ? so it is said, ?democracies are run by 51 fools over 49 learned?.


Even companies like the governments are arbitrary, just because they follow the rule of diktats or something called jihads or their pet ideas to prevail against rationalism.

These kinds of diktats are invariably ?idiotic? premise. It is supported by ego of the men concerned.

See Jaswant Singh is removed from primary membership of BJP just because he wrote a book appreciating Jinnah. Does it not mean ?ideologues? are some kind of ?idiotic-followers of particular thought line? and they will not accept any dissent, adding to this Modi of Gujarat banned the Book, though it is an accepted reality writing is a ?liberal thought process?.

See again the dichotomy ? when Advani praised Jinnah at a Karachi conclave, yet he was accepted by BJP, as he is a mass LEADER. What does it mean?


If you are a mass LEADER you will have freedom, with small admonition, by the party and RSS. Do you call this great wisdom, when the perimeters of wisdom are itself in trouble? That wisdom is pure idiocy.

When USA allowed sinking of Lehman Bros (a very big banking company),
While, at the same time, the self- same USA bailed out some others, what will you call? This is the paradox.

So, some believe ?higher capital is first line of defense against failure but it does not follow that it is adequate defense.


Similarly the view flows ? the idea of any CEO can manage the risks of banks with a trillion $ or more assets is RIDICULOUS.


Further ?the benefits of size taper off beyond a certain absolute size and smaller banks often out-perform larger ones?.( You see Citigroup and our State Bank of India ? both 13% of their respective GDPs - while the sensible ruling is no bank should be, say should not exceed 5% to 10% of GDP- enormous flouting the ?principle? (some yard stick) by the governments, there is a failure of governments governance means government regulators are also great IDIOTS, is it not?

Regulators are appointed by governments managed by legislators at the treasury benches, running the governments, would you still call them great legislators with FULL OF WISDOM!

There was some WISDOM when PV Narasimha Rao, as PM took loan to just ward off the immediate problem of financial crunch created by his great predecessor PM VP Singh?s prodigal policies. PVN told that once he pays back the entire loan amount he wanted to continue the mixed economy and not to cause capital convertibility etc, for that would upset the balance of the economic culture of Indian peoples.





Similarly Dr. Man Mohan Singh worked with his team of Motek Singh Alluwalia and P Chidambaram, Madhava Rao Scindia etc., in 1991. What could PVN realize even Vajpayee failed to understand and same problem is getting snow balled day by day to the very peril of the economy in India and similar kind of intellects WORLD OVER are running the world of today. Do you call the goings on simply product of WISDOM?



Every thing happening today is some kind of over playing by these geniuses, and the ultimate sufferers are the people, who were the architects of information technology and outsourcing of work from USA. Do you mean to say ever outsourcings will continue to run for ever, friends?

Financial Times columnist John Kay said recently in one of his articles in financial Times London (July 7) ? ?Royal Bank of Scotland (RBS) and HBOS were manned by ?exceptional bankers (men)? but that is not true with others.

He further says ?if they failed eventually, it was because the task was fundamentally beyond them.



So, it means our systems fundamentally should be capable of being managed by ordinary men, may be ?idiots?, just to carry on things as per guidelines, not by leveraging-idiots, for they will drive the economies to deep bottoms! (Warren Buffet is right in his predictions) (ends)