With the fall of US financials we are headed for good times.

This may sound foolish but I have reasoning to think it is true.

US financial ruled this world through the 20th century and had grown “too big to collapse”. This is a fallacy. People think they have made things so certain that nothing can happen to them but CHANGE is the only real thing in this world.

This is an economic problem but should be seen in socio-economic light to understand its benefits. Fall of US financial system will lead to fall of US weapons business and oil diplomacy. Remember these two things are the root cause of world terrorism whether it is Georgia, Chechnya or Afghanistan. I hope everybody is not naïve enough to believe that Osama is fighting for religion. No body fights for religion. People take advantage of the gullibility of the innocent fools by invoking their religious sentiments to fulfill their greed for money or power (again motivated by the business). He was a business man and is a business man. Only thing is he has changed his business from construction to terrorism.

Fall of US hegemony in world weapons business and oil diplomacy will leave no motive for sheikhs in middle-east to finance Osama and many others like him to fight against US. Moral of the story is market forces are the best judge of what is right. Osama could never have achieved victory over the US financial terrorism by battle of gun. This will surely bring slow down in terrorism business, budding terror outfits will see lack of funding avenues. Thus making world a better place to live and also save a lot of tax payer’s money that goes in fighting these idiots. I am not saying terror will end with this. No it will not. Violence is in human nature but there will be a pause for a while.

Secondly, if we look at history fall of big and powerful has always made world a better place. Fall of USSR led to end of cold war and world became safer place to live. Fall of US financial system will make world a better place to start new business. Fall of these multi-billion dollar giants will open a lot of opportunity for lot of entrepreneurs. My advice to all the young and talented INVESTMENT BANKERS is to use their talent and start on their own. They have earned enough to bootstrap for few days. This way world will soon see many more JP’s and Stanley’s on future. Also fall of US business supremacy will mark the emergence of CHINA as true business power house of the world which is good. Smart businessmen should start orienting their business towards China.

I agree that there is panic all around but it is not because we see end of world in front of us. It is because we are not ready to accept the change. The biggest mistake that US government is doing is to fight the change and not absorb the change. All this bail out strategy will only lead to worsening of the US economy. Moving away from capitalist fundamentals to socialist strategy is a bad bad bad bad very bad idea. Socialism failed not because it was a bad economic system. It was a great man made economic system in search of a true UTOPIA. It failed because it was against the laws of nature (things should survive by adaptation and struggle and not by subsidiary).

The current panic has been induced by human outcry which comes from trading floors. If US government wants to absorb this panic then they should let sentiments settle down. Declare bank and market holiday for a week. It is not a crazy idea this is done all the time in times of panic. History also tells us that during the great depression president Franklin D Roosevelt had declared 3 days of bank holiday to cool things off. This will kill the noise and give everybody a chance to think for a solution.

One thing that I believe in is what James Dines, Investment newsletter writer said “If you hear that everybody is buying a certain stock, ask who is selling.” For past week I am looking at price of all financial stocks falling to the rock bottom. Now again innocent fools don’t know how price is discovered in the market. Price comes when trade happens. So if price is falling then somebody is buying and it is not the retail investor for sure. It will be some of the financial institutions again or HNIs. At this point somebody (much more educated, smart and shrewd) still thinks Lehmen is worth buying. May be we should try to find these people (may be ask George Soros) and ask them what they see in future. I can guarantee that these guys will have the right answers to all this mess and not a business professional or a stock analyst.

Lastly, I think this crisis has been inflicted upon us by this so called business professionals who are elusive. We know there is problem but we don’t know what caused the problem and who is responsible for it. Everybody has just walked out of the Lehmen premises as if somebody outside their company took the investment decisions. To understand my point, please see “Wall Street” and pay attention to the scene where Gorden Geko gives speech to Teldar stock holders.

“Management has no stakes in the company, the Carnegie and Mellon build business empires because they had stake in the company”.

We the stock holders have to pay a serious attention to the role of business professionals in the modern business world. Business professional are concerned only about their bonuses which are proportional to rise in top and bottom line. And that is the reason why we see companies changing CEOs so frequently. They all are interested in making fast buck and earn bonus. They just do their JOB and don’t create value. Invest in a company which is run by entrepreneurs, the crusaders, and not by professionals.

Akhil Bansal