"Inside Job" - a must watch

Last week, I had the occasion to watch "Inside Job" a documentary on financial sector meltdown in the US - and its consequential effects on other economies. First, it is great to see Sony release a movie such as this in the mainstream theaters. Second, it emphasized yet again (as if reiteration was at all needed) that when confronted with self-serving greed, a system supposedly working on "self-regulation" is destined to fail.

The fact that the "freedom of markets" has been taken to an extreme - and needs urgent correction is there for all to see. Painfully, the lobbyists are so strong that the system continues - in fact becomes worse as the "solutions" turn out to be even sillier than the cause.

"Too big to fail" has now translated into "Even bigger" - rather than regulatory action breaking up large companies posing systemic risks into smaller entities that can be regulated better, the reverse has happened. The industry has managed through fear and favour to lobby the regulators and law makers from passing any laws that curtail the industry's ability to cause another catastrophe.

One hard hitting fact that emerged was the lack of intellectual integrity in the so-called thought-leader academic institutes. Leading academicians - deans and professors from Harvard and Columbia were filmed acting like petty thieves caught with their hands in the till. They apparently found nothing wrong in writing research as original work - where the recommendations benefited clients who paid for the research - and these august institutions apparently have no policy to avoid this conflict of interest.

In essence, one comes away from the movie - more than a little disgusted with the worshippers of the mammon - and of the antics of the "intellectuals" in business schools. Is it any wonder that with ethics such as theirs, the students have no compunction in causing misery to the millions in the real economy - so long as they get their bonus.!

Japanese earthquake - lessons for India

The earthquake, followed by the Tsunami in Japan has been devastating. In the words of PM Naoto Kan, Japan is facing the "worst crisis since WWII".  Despite extremely strict building norms, over 10,000 people are feared dead.

What initially started as one nuclear power plant shut down, has now (as I write this) extended to three - Fukushima (now in its third day), Onagawa, and Tokay No2 plant. Japan is the only country to have suffered a nuclear explosion. A nuclear power plant in Japan would necessarily have followed the strictest possible building norms. Besides, Japan is anyway an earthquake prone area - and even regular buildings are constructed to withstand the earth shaking. Despite this, nuclear power has again proven to be risky and dangerous.

Imagine the consequences in a country like India - where building norms are generally lax, and casually enforced. Add to that the lack of liability of foreign suppliers, and a high density of human population - with minimal emergency systems - and you get a potent recipe for disaster. Recent reports suggest that the Buoys that were floated as part of India's early warning Tsunami system are already part of the inventory of  junk dealers.

Someone needs to ask - do we REALLY need those nuclear reactors - just so that some multinational can grow rich? After the fiasco of the CVC, perhaps this is another policy where the PM needs to admit to the mistake of his decision.