How powerful can a person be? Or How sustainable are the financial explosions?
The world economy is like a fire which when uncontrolled can create havoc. A well controlled fire can run an engine, spread peace, provide light or cook food but if uncontrolled can gulp in the safest buildings like World Trade Centre or cause distructions like bombs. What is similar between the trend of world economy and fire?
The world economy is seen to follow a smooth curve unless something like a bomb disturbs it. The bomb fuels the economy tremendously, after which there is a sudden dip in economy as if the economy is lacking fuel.
The unusual and mild recession of 1926-27 is thought to be caused by the closure of Ford plants in America. This was done for a period of 6 months to change the production from Model T to the Model A. In this case the fire was closure of plant and the cause was a person called Henry Ford! Though it is not considered to be a fraud.
The famous movie ‘Catch me If you Can’, based on a real story, describes very beautifully the meaning of fraud and fraudsters. Mr. Abagnale Jr. is known as one of the most notorious fraudsters of all time. He used to print his own cheques in the name of U.S Defence and costed the US govt. $ 2.5 million in 1960. The effect of this fraud was not much on the economy but it made the entire banking industry to ravamp the cash dispersal system. The banking industry seemed to be satisfied with the system until a bomb like fraud shook them!
Lets talk about the accounting frauds like Enron and Satyam. These frauds were of the tune of billions of dollars. Mr. Kenneth Lay and Mr. Raju the heads of the respective organizations ingited the fire which bombed such huge organisations. The aftermaths of which have helped in pushing further down the suffering economy.
Do these Lords of the Frauds really help the world in improving on the prevelant systems and culture? After every explosion of such events the world reorganises to prevent such explosions and still we have bubble bursts, dotcom burst, great depression etc.. Tyco, Dreier, Worldcom and Madoff have proved this recurrent nature of financial bombs for the betterment of the society.
The question is when will this end? Or will there be a sheild strong enough to lessen the effects of such explosions?
Rogues
