The Meltdown - Introduction

What is melt down? For any thing to melt down it should be a solid like ice melting down as water or due to extreme heat and boiling the solid becomes liquid and eventually becomes gas.. It was the greaat glacial ice meltdown which happened in paleocene era that made the entire flora and fauna to become extinct in a sheet of ice and changed them to fossils.

Mother earth has some ingenious ways of destruction. Fire, famine, act of gods are some of them. Other major perils include terrorism, riots,nuclear and war perils..

Reckless use of natural resources, industrialisation resulting in non-bio degradeable wastes, release of toxic wastes and pollutants, ireversible depletion of energy etc are already pushing mankind towards a catastrophe..

Mismanagment due to unending greed has now added a new peril which is Financial Meltdown.

There are straight forward method of improving the wealth by value addition. They include mineral exploration and industrialisation, agriculture and human resorces.

These are conventional and do not bring in dramatic results. So you start dealing in shares by progressively assigning artificial/ficticious values and indulge in buying and selling. Create hype about an existing or a start up company and fix up a huge price for the shares. Get them over subscribed and decamp the money by selling the company to some foreign investor....
Start trading on commodities like "Haldi" and "Kum Kum" hoard these commodities in warehouses and create more demand in the market. Increase the prices and make profit.

Another funny and unhealthy trend is patents. You patent even a generic product like neam leaves!

There is wonderful thing like credit cards... you issue credit cards to even beggers... and lend them money... The receivables(?) become one source for the banks to borrow money from Financial organisations!

Then you have Credit Default Swaps! You offer loans on the strength of the Shares certificates of the clients... and these receivables are pledged to some financial institutions who will lend money to the banks..!

This is known as the "Going Concern" concept in Accounting Practice! yeah.... yours and my concerns are going... and so are the banks and institutions... going out of the scene!

Enjoy the melt down!