Monday, April 20, 2009
Why We are & Where We were...
1980...on a typical balmy summer night in Madras..Anna Nagar a outlying suburb that tends to a quiet zone by Madras-Standards....It was Dinner-Time 8-ish..
Sunday, December 14, 2008
Energy 2.0 - Smart-Powering America's Future
Giving Back..Transforming lessons learned in Silicon Valley to RePower America's Future..
They say - one thing leads to another....
This has been a fascinating project (or the starting point to a project!) over the past 35 days. It has been a productive time collaborating with a variety of professionals both in the IT & Energy sectors - to produce a pragmatic small-scale enterprise's viewpoint on America's Energy Future.
Every recording session was filled with constructive discussions. Definitely a positive experience overall....What's next? Musing begins.
They say - one thing leads to another....
This has been a fascinating project (or the starting point to a project!) over the past 35 days. It has been a productive time collaborating with a variety of professionals both in the IT & Energy sectors - to produce a pragmatic small-scale enterprise's viewpoint on America's Energy Future.
Every recording session was filled with constructive discussions. Definitely a positive experience overall....What's next? Musing begins.
Sunday, October 19, 2008
Closing Credits
What really prompted me to write this blog & also ask a simple question to my fellow enthusiasts (which i'll detail a few lines later) - was the sheer velocity in the antipathy that was unleashed against Wall Street CEOs - especially a guy named Dick Fuld (Ex-CEO of the now-defunct Lehman Brothers), when the market collapse occured...My reaction to the antipathy was : SURPRISE.
Here's what I thought (& by the way, i'm one of those in the American middle-class who's every bit affected by this crisis) ---- I do not have any reasons to have issues with Mr. Fuld - absolutely none, but I have issues with - guess who? us, the society....I'll share my thoughts here - on why I say so..
I migrated to the U.S in the late 90s & now I'm in my early 30s...I absolutely believe in America & in the 'American Dream'....I adore America for its history & traditions, it's journey to being the best & on top of it all - the Hope it offers for not only the citizens of America, but for everyone in the world.
Having said all that, I do believe there's one area where American Corporate Sector has been losing the ball-game BIG-Time - i.e. in Real Leadership....the same sphere where America led at the turn of this century churning out many visionary intellectuals that looked out for the society as well...Don't mistake me - there is no dearth of Efficient Managers - who get the "job done", which is a credible achievement in itself.
Hopefully we won't confuse & trust "Management" - i.e. measuring mid-quarter market returns, credit derivative differentiators & more head-counting management techniques - to lead the world's largest economy into the next generation - instead of "Leadership" i.e. Planning by promoting programs including Education, Visionary Thinking, Innovation where it matters -e.g. Energy Independence, Promoting Small Businesses,Creating Jobs for everyone in America, Implementing schemes that provide incentives to boost the productivity & bring out the innovator in the everyday American Worker....
Even when we move away from Managers to Leaders - a fundamental challenge, i think, still remains rooted in the system. That brings us to the question i posed around recently - "In Business, Is it important to do the right thing or to do the smart thing?" or is there a mid-ground about being smartly right & rightly smart (should the ones who get paid the big bucks have enough wisdom to find this middle-ground?)
I think - over the past 4 decades, when the economy started turning 'super-powerish', there have been decisions made by "Management", that seemed smart for a short-term period (I'll let you re-read the "MOVIE" Post, in the context of this statement). In the first decade of the 21st century - Mr. Fuld did the same thing, nothing different. Yes, Dick Fuld (& many other countless CEOs - some who perished, some who survived) did the smart thing in investing on Mortgage sector(because it was the Highest-Yielding Sector irrespective of the bugs & ills it may have faced!!) - so did the U.S Government(via GSEs) & so did Global Governments & Banks...They just got a bit more smarter than their predecessors by implementing Funny-Money techniques like Credit Derivates & making them Mainstream (ever heard of CDO Subject Matter Expert Job Openings in NYC,Chicago? - I have!)
Not all joined the "smart bandwagon" though - enterprises including Goldman Sachs, Wells Fargo largely managed to stay out of high-risk investments (though invariably they continue to get affected as the Home Prices continue to decline, with no lower ceiling)..
Let me reiterate, I'm ok with Capitalism - but when we have "Ship Captains" in-charge - is'nt it supremely important for them to spot the iceberg early? Is'nt that why we are paid the big bucks than a regular sailor or the chef in the kitchen? What happens when Captains chart their Cruise course searching for Icebergs?
The problem, make no mistake, is not with the Captain only - the problem is with ( a part of) Shipping Industry(i.e. us - the society) as well...We (Not generalizing, but trend-wise) are being trained (by our own institutions of choice) to avoid Icebergs - not for our safety - but just because we'd happen to burn more fuel in the Ship's tank if we take that route.
Just in case, it made sense for the Ship's fuel economy - we'll probably advise our Captains to take the Iceberg route (because we save more & the probability of hitting the Iceberg is about 0.01%)..
Guess what, in September 2008, We Just Hit the IceBerg head-on!! & yes, the Ship(Global Economy) is showing signs of sinking into a recession...
From the above analogy, it's clear the American Corporate Sector (through all its ups & downs over the decades) is less guilty of the sins than the Global Corporate Sector's current ones over the past 6-7 years - seemingly feeding on the American Consumer's enthusiasm by promoting the BPO/Call-center culture but not exactly promoting high-quality local socio-economic programs including emphasis on Technology, Science & Engineering, more importantly Ethics).
For all the Emerging market talk & being insulated from America's positives & ills - it's clearly evident that the Global Industry(as it stands today) took decisions -during the timeline of this crisis - blindly driven by the decisions taken by the American Corporate Ship Captains...Maybe they did not have a choice but to follow the U.S - in order to sustain their aggressive GDP growth yearly - but is that a good enough reason & more importantly - is that a right reason?...
Leads us to a bigger question(probably another blog-topic!)- Is Globalization ready for prime-time as being touted or is it a growing concept? - Is the Customer/Consumer global yet - or are just the Services being provided on a Demand-basis (independent of geography) to the same Consumer-base(in U.S)? Questions that demand some introspective thinking at a Global Level, i believe....Is the World Truly Flat yet? or are we mistaking a change from a Circle to an Ellipse for a Straight line?....
Without getting idealistic about "being right all the time" etc (That's la-la land, given that we are human!) --- I do think, what's missing is the ingredient called "Ethics" in the Entrepreneurial Cuisine & that Ingredient needs to be added - way early in the game & across the cuisine (not just sprinkled in one entree during one meal etc..)
Ethics needs to be imbibed in the system from homes, schools, sporting arenas & carried over to working environments & running/managing business(single employee, small-scale or Global Multi-Billion Dollar Enterprises)..
"Try Hard, Put in your best efforts, It's important to WIN, but Winning is not a birth-right, it's not a cakewalk, Winning requires Passion, Sacrifice & Sweat" should be the mantra - replacing a "I'm born to Win" or "Supposed to Be Ahead" attitude.
Ethical Entrepreneurs should echo Abraham Lincoln's words loudly "Ask not what your country can do for you, Ask what I can do for my country"....Yes, make yourself & all the shareholders more economically stronger by your decisions (I'm all for it) - but be conscious of your citizens, your country & the planet...Yes, there will be paths that cross & decisions that create conflict - But Let the Intentions stay within your Ethical Ideals....Never lose the Forest from the Trees!
We all can safely agree - there is no Regulation enforceable (by Government, Law, Politicians, SEC boards) for Human Greed, if it's promoted socially as an "unaccountable" quality of all of us. One of my favorite dialogues is from the movie "Wall Street" where Michael Douglas quips "Greed is Good..". I'll repeat it "Greed is Good" & add a caveat - "as long as there is Real Risk attached to the Reward i.e. People (whether a CEO or a Janitor or an IT Architect or a Restaurant Waitress) who make a buck need to put his/her necks on the line (before we volunteer other people's necks to the altar!!), while earning their bread..
At this point of my comments - Let me take the liberty of mildly contradicting myself...Irrespective of the responsibilities - Leaders/Ship Captains hold, there are critical responsibilities that Workers/Passengers hold as well. I don't believe those are being fulfilled as well, to even a reasonable extent. Without blaming management & policy-makers, individuals/workers need to think about this honestly for a second - wherever you live (whether Detroit or Darfur or Dehradun), whether you are more productive & innovative on a per-hour basis, compared to anyone else - why would your job be lost elsewhere? So is'nt the real question - "Are you competing hard enough?" rather than point the blame at Higher-ups & the System. We may be surprised how much Change, can be brought from inside-out rather than outside-in...
They say - Progress is a simple Manifestation of Intention & boy - as a species - have we progressed or what? - from the Jungles to Globalization, Space Exploration & almost Re-enacting the Big Bang!....I happen to believe (whether it's a myth or a fantasy) that Ethics (not just coincidence) has played a role in our evolution (as much as, if not more than - just sheer laws of nature)..
It's high time we go back to our Basics - not just in America - but everywhere in the Globe - to play the game really hard & furiously fast - but play it the fair way, importantly find the 'leader' within each of us.
Tomorrow needs for the society to drive the government & the government to lay socio-backed policies for industries. Educational institutions need to continue empowering the society, the government & a be the fact-checker for both the audiences. Industries need to imbibe the new(post-2008) foundational goals (job creation, social welfare, innovation not only at a product level but at a productivity level) into their corporate boards & workforce....That brand of "alism" needs to emerge - whether it'd be called capitasocialism or sociocapitalism - i dont know..
But I believe the world & it's life+support systems(Justice, Education, Infrastructure, Human Resources...) has evolved in many ways & will continue to increase its complex intertwinings as our generation matures - that drives a need for a serious re-think on whether socialism & capitalism are polar opposites OR whether they can work together from a "opposites attract" theory...
I think they can, but it needs some re-think of status-quo ideologies & bold implementation of future-looking principles. I'm definitely willing to pitch in my 2 cents..
Signing off now - with LOTSA HOPE!
Here's what I thought (& by the way, i'm one of those in the American middle-class who's every bit affected by this crisis) ---- I do not have any reasons to have issues with Mr. Fuld - absolutely none, but I have issues with - guess who? us, the society....I'll share my thoughts here - on why I say so..
I migrated to the U.S in the late 90s & now I'm in my early 30s...I absolutely believe in America & in the 'American Dream'....I adore America for its history & traditions, it's journey to being the best & on top of it all - the Hope it offers for not only the citizens of America, but for everyone in the world.
Having said all that, I do believe there's one area where American Corporate Sector has been losing the ball-game BIG-Time - i.e. in Real Leadership....the same sphere where America led at the turn of this century churning out many visionary intellectuals that looked out for the society as well...Don't mistake me - there is no dearth of Efficient Managers - who get the "job done", which is a credible achievement in itself.
Hopefully we won't confuse & trust "Management" - i.e. measuring mid-quarter market returns, credit derivative differentiators & more head-counting management techniques - to lead the world's largest economy into the next generation - instead of "Leadership" i.e. Planning by promoting programs including Education, Visionary Thinking, Innovation where it matters -e.g. Energy Independence, Promoting Small Businesses,Creating Jobs for everyone in America, Implementing schemes that provide incentives to boost the productivity & bring out the innovator in the everyday American Worker....
Even when we move away from Managers to Leaders - a fundamental challenge, i think, still remains rooted in the system. That brings us to the question i posed around recently - "In Business, Is it important to do the right thing or to do the smart thing?" or is there a mid-ground about being smartly right & rightly smart (should the ones who get paid the big bucks have enough wisdom to find this middle-ground?)
I think - over the past 4 decades, when the economy started turning 'super-powerish', there have been decisions made by "Management", that seemed smart for a short-term period (I'll let you re-read the "MOVIE" Post, in the context of this statement). In the first decade of the 21st century - Mr. Fuld did the same thing, nothing different. Yes, Dick Fuld (& many other countless CEOs - some who perished, some who survived) did the smart thing in investing on Mortgage sector(because it was the Highest-Yielding Sector irrespective of the bugs & ills it may have faced!!) - so did the U.S Government(via GSEs) & so did Global Governments & Banks...They just got a bit more smarter than their predecessors by implementing Funny-Money techniques like Credit Derivates & making them Mainstream (ever heard of CDO Subject Matter Expert Job Openings in NYC,Chicago? - I have!)
Not all joined the "smart bandwagon" though - enterprises including Goldman Sachs, Wells Fargo largely managed to stay out of high-risk investments (though invariably they continue to get affected as the Home Prices continue to decline, with no lower ceiling)..
Let me reiterate, I'm ok with Capitalism - but when we have "Ship Captains" in-charge - is'nt it supremely important for them to spot the iceberg early? Is'nt that why we are paid the big bucks than a regular sailor or the chef in the kitchen? What happens when Captains chart their Cruise course searching for Icebergs?
The problem, make no mistake, is not with the Captain only - the problem is with ( a part of) Shipping Industry(i.e. us - the society) as well...We (Not generalizing, but trend-wise) are being trained (by our own institutions of choice) to avoid Icebergs - not for our safety - but just because we'd happen to burn more fuel in the Ship's tank if we take that route.
Just in case, it made sense for the Ship's fuel economy - we'll probably advise our Captains to take the Iceberg route (because we save more & the probability of hitting the Iceberg is about 0.01%)..
Guess what, in September 2008, We Just Hit the IceBerg head-on!! & yes, the Ship(Global Economy) is showing signs of sinking into a recession...
From the above analogy, it's clear the American Corporate Sector (through all its ups & downs over the decades) is less guilty of the sins than the Global Corporate Sector's current ones over the past 6-7 years - seemingly feeding on the American Consumer's enthusiasm by promoting the BPO/Call-center culture but not exactly promoting high-quality local socio-economic programs including emphasis on Technology, Science & Engineering, more importantly Ethics).
For all the Emerging market talk & being insulated from America's positives & ills - it's clearly evident that the Global Industry(as it stands today) took decisions -during the timeline of this crisis - blindly driven by the decisions taken by the American Corporate Ship Captains...Maybe they did not have a choice but to follow the U.S - in order to sustain their aggressive GDP growth yearly - but is that a good enough reason & more importantly - is that a right reason?...
Leads us to a bigger question(probably another blog-topic!)- Is Globalization ready for prime-time as being touted or is it a growing concept? - Is the Customer/Consumer global yet - or are just the Services being provided on a Demand-basis (independent of geography) to the same Consumer-base(in U.S)? Questions that demand some introspective thinking at a Global Level, i believe....Is the World Truly Flat yet? or are we mistaking a change from a Circle to an Ellipse for a Straight line?....
Without getting idealistic about "being right all the time" etc (That's la-la land, given that we are human!) --- I do think, what's missing is the ingredient called "Ethics" in the Entrepreneurial Cuisine & that Ingredient needs to be added - way early in the game & across the cuisine (not just sprinkled in one entree during one meal etc..)
Ethics needs to be imbibed in the system from homes, schools, sporting arenas & carried over to working environments & running/managing business(single employee, small-scale or Global Multi-Billion Dollar Enterprises)..
"Try Hard, Put in your best efforts, It's important to WIN, but Winning is not a birth-right, it's not a cakewalk, Winning requires Passion, Sacrifice & Sweat" should be the mantra - replacing a "I'm born to Win" or "Supposed to Be Ahead" attitude.
Ethical Entrepreneurs should echo Abraham Lincoln's words loudly "Ask not what your country can do for you, Ask what I can do for my country"....Yes, make yourself & all the shareholders more economically stronger by your decisions (I'm all for it) - but be conscious of your citizens, your country & the planet...Yes, there will be paths that cross & decisions that create conflict - But Let the Intentions stay within your Ethical Ideals....Never lose the Forest from the Trees!
We all can safely agree - there is no Regulation enforceable (by Government, Law, Politicians, SEC boards) for Human Greed, if it's promoted socially as an "unaccountable" quality of all of us. One of my favorite dialogues is from the movie "Wall Street" where Michael Douglas quips "Greed is Good..". I'll repeat it "Greed is Good" & add a caveat - "as long as there is Real Risk attached to the Reward i.e. People (whether a CEO or a Janitor or an IT Architect or a Restaurant Waitress) who make a buck need to put his/her necks on the line (before we volunteer other people's necks to the altar!!), while earning their bread..
At this point of my comments - Let me take the liberty of mildly contradicting myself...Irrespective of the responsibilities - Leaders/Ship Captains hold, there are critical responsibilities that Workers/Passengers hold as well. I don't believe those are being fulfilled as well, to even a reasonable extent. Without blaming management & policy-makers, individuals/workers need to think about this honestly for a second - wherever you live (whether Detroit or Darfur or Dehradun), whether you are more productive & innovative on a per-hour basis, compared to anyone else - why would your job be lost elsewhere? So is'nt the real question - "Are you competing hard enough?" rather than point the blame at Higher-ups & the System. We may be surprised how much Change, can be brought from inside-out rather than outside-in...
They say - Progress is a simple Manifestation of Intention & boy - as a species - have we progressed or what? - from the Jungles to Globalization, Space Exploration & almost Re-enacting the Big Bang!....I happen to believe (whether it's a myth or a fantasy) that Ethics (not just coincidence) has played a role in our evolution (as much as, if not more than - just sheer laws of nature)..
It's high time we go back to our Basics - not just in America - but everywhere in the Globe - to play the game really hard & furiously fast - but play it the fair way, importantly find the 'leader' within each of us.
Tomorrow needs for the society to drive the government & the government to lay socio-backed policies for industries. Educational institutions need to continue empowering the society, the government & a be the fact-checker for both the audiences. Industries need to imbibe the new(post-2008) foundational goals (job creation, social welfare, innovation not only at a product level but at a productivity level) into their corporate boards & workforce....That brand of "alism" needs to emerge - whether it'd be called capitasocialism or sociocapitalism - i dont know..
But I believe the world & it's life+support systems(Justice, Education, Infrastructure, Human Resources...) has evolved in many ways & will continue to increase its complex intertwinings as our generation matures - that drives a need for a serious re-think on whether socialism & capitalism are polar opposites OR whether they can work together from a "opposites attract" theory...
I think they can, but it needs some re-think of status-quo ideologies & bold implementation of future-looking principles. I'm definitely willing to pitch in my 2 cents..
Signing off now - with LOTSA HOPE!
Thursday, October 9, 2008
The Movie
1929 - Stock Markets collapse, Great Depression Hits, Government needs to step in to restore order (FDR), but Recession continues for a decade+
1946 - 1970s : Stock Markets don't recover till 1954, but Post-War Era in America brings out the very best in "do-it-yourself" Innovation, Productivity & Leadership.."Made in America" Brand is in full throttle...World-class Factories and Highways are built...American Industrialism is matched by the vigor and energy of American Consumerism...Entrepreneurs with best innovative ideas that sell, make it mainstream...Your home becomes the symbol of your "American Dream"...Built on a World-Leading Economy & corresponding Military Might - America takes the Lead-Role in addressing Key Socio-Global issues including Civil Rights & Equality to Women.
1980s : U.S. Manufacturing Sector - primarily Steel, but including Automotive - start outsourcing their work to China...Era of Walmart begins...Job losses in America grow...America is still - by many miles - the best place to realize your Entrepreneurial dreams...America bets heavy on Airlines and Trucks/Cars(via dominance of Auto Industry and availability of Best Highway system in the world), but goes easy on other transportation means....Owning a home is still the ultimate "American Dream"...
1987/88/89 : Stock Markets crash, Savings Bank Crisis....US falls into a Recession, More jobs go overseas, Earning Power of American worker takes a hit, but Consumer Sentiment continues to ride ok (not proportional to the level of effect in Earning Power ). Oil consumption goes up....The impression of - Americans can visualize and design large-scale but cannot optimize costs & show value-benefit at a micro-level(which is important in manufacturing & extends to any business processes) takes solid roots...Foreign Auto-Manufacturers like Toyota, Honda slowly gain prominence in U.S - showing impressive Quality Levels for Large-scale manufacturing scales within acceptable product pricing.
1995 - 'INTERNET' in America begins to go mainstream...IT Sector creates more jobs by itself & through satellite sectors. The Internet Boom creates young billionaires & millionaires - but creates more opportunities for American Middle Class as well. Immigration is at its peak to the 'Land of Opportunity'...Deserts become Cities(Phoenix), with full-fledged IT Giants (Intel) presence...Homes are being constructed at a break-neck pace, A Home is longer just an American Dream but a fast-paced vehicle for running your equity.
2000 - Dot Com Bubble bursts, IT Jobs in America start to dwindle..
2001 - Worst Attack on American soil sends US into recession
2002 - The "White Collar" Outsourcing Era is in full steam by now - to countries including India - in IT, Finance, Telecom till Tutoring your Kid in third grade...Business Process & IT Outsourcing clicked instantaneously full-steam because of a simple concept. "Quality combined with Value - is just a plain winner, no matter where it's located - especially in the era of well-developed Communications"...
2002 - 2007 : U.S experiences severe job losses & very minimal GDP growth(slowing down to 0.6% in 2008). Oil Companies make record profits in 2005 -2007 with soaring gas prices. Most other sectors(as reflected by U.S GDP) which are heavy in North American Operations experience slowest growth in decades. So the "Emerging Markets" fully emerge - in most sectors - with soaring Foreign investments in markets like BRIC....but there is one sleeper sector - which mysteriously continues to experience solid growth year-by-year even in those down years - i.e. U.S Housing Sector. Investments grow in the U.S Housing sector from Government, Investment Banks, heck-even from Foreign Governments who hold U.S Debt(principally China!)..No one seemed to doubt the "Spinal Cord" of the American Dream to fail -- even though the "Blood Flow" of the American Dream i.e. Jobs were being lost in leaps & bounds during the last 6+ years...On top of it, came aggressive practices like Sub-Prime Lending to create more "Housing Flows" & thereby more Investment Opportunities (Ever heard about Betting on your House, with no money in your pocket??). U.S. Stock Markets(on a completely different plane) PEAK in October, with DOW closing in on 15000...
2008: So-called "Sub-Prime Bubble" bursts & boy, does it burst big-time? Investment Banks go bust, so do GSEs, next-in-line are Savings Banks, our 401K, next we know - the buzz is around that ATM machines may not work!..DOW gets halved(almost) to 7880.& the ironic-but funny- part was this was not a U.S only problem(though it originated here) - Iceland(yes, Iceland!!) went bankrupt because of this crisis & the British Government was suing a bankrupt Iceland..."Bailout" becomes the most used word around the world overtaking any popular keywords & world events...Everyone is starting to ask for a bailout from California's Governor - Arnold Schwarzenegger to Indian Banks, heck even some Retailers in remote parts of Norway & Greece...All why - I don't claim to know the "exact" reason - but when when you build LEGO BLOCKS - there are two kinds - one: you pull out any block, the tower breaks, the second: you pull out THAT block, the tower breaks!...My friends, this bubble is of the second kind...turns out that "every firm" located "anywhere" asking for a bailout now - has been directly or indirectly or super-indirectly betting big on a heavily risked Housing Sector in a country - where Jobs have been steadily dwindling, but Consumer Sentiments have been miraculously kept up due to Tradition & more importantly, Hope - guess why the supposed Global Whiz-Kids have been playing this High-Risk game - because No other Sector has been experiencing real growth in the last 6 years to consistently invest in on a large-scale.
1946 - 1970s : Stock Markets don't recover till 1954, but Post-War Era in America brings out the very best in "do-it-yourself" Innovation, Productivity & Leadership.."Made in America" Brand is in full throttle...World-class Factories and Highways are built...American Industrialism is matched by the vigor and energy of American Consumerism...Entrepreneurs with best innovative ideas that sell, make it mainstream...Your home becomes the symbol of your "American Dream"...Built on a World-Leading Economy & corresponding Military Might - America takes the Lead-Role in addressing Key Socio-Global issues including Civil Rights & Equality to Women.
1980s : U.S. Manufacturing Sector - primarily Steel, but including Automotive - start outsourcing their work to China...Era of Walmart begins...Job losses in America grow...America is still - by many miles - the best place to realize your Entrepreneurial dreams...America bets heavy on Airlines and Trucks/Cars(via dominance of Auto Industry and availability of Best Highway system in the world), but goes easy on other transportation means....Owning a home is still the ultimate "American Dream"...
1987/88/89 : Stock Markets crash, Savings Bank Crisis....US falls into a Recession, More jobs go overseas, Earning Power of American worker takes a hit, but Consumer Sentiment continues to ride ok (not proportional to the level of effect in Earning Power ). Oil consumption goes up....The impression of - Americans can visualize and design large-scale but cannot optimize costs & show value-benefit at a micro-level(which is important in manufacturing & extends to any business processes) takes solid roots...Foreign Auto-Manufacturers like Toyota, Honda slowly gain prominence in U.S - showing impressive Quality Levels for Large-scale manufacturing scales within acceptable product pricing.
1995 - 'INTERNET' in America begins to go mainstream...IT Sector creates more jobs by itself & through satellite sectors. The Internet Boom creates young billionaires & millionaires - but creates more opportunities for American Middle Class as well. Immigration is at its peak to the 'Land of Opportunity'...Deserts become Cities(Phoenix), with full-fledged IT Giants (Intel) presence...Homes are being constructed at a break-neck pace, A Home is longer just an American Dream but a fast-paced vehicle for running your equity.
2000 - Dot Com Bubble bursts, IT Jobs in America start to dwindle..
2001 - Worst Attack on American soil sends US into recession
2002 - The "White Collar" Outsourcing Era is in full steam by now - to countries including India - in IT, Finance, Telecom till Tutoring your Kid in third grade...Business Process & IT Outsourcing clicked instantaneously full-steam because of a simple concept. "Quality combined with Value - is just a plain winner, no matter where it's located - especially in the era of well-developed Communications"...
2002 - 2007 : U.S experiences severe job losses & very minimal GDP growth(slowing down to 0.6% in 2008). Oil Companies make record profits in 2005 -2007 with soaring gas prices. Most other sectors(as reflected by U.S GDP) which are heavy in North American Operations experience slowest growth in decades. So the "Emerging Markets" fully emerge - in most sectors - with soaring Foreign investments in markets like BRIC....but there is one sleeper sector - which mysteriously continues to experience solid growth year-by-year even in those down years - i.e. U.S Housing Sector. Investments grow in the U.S Housing sector from Government, Investment Banks, heck-even from Foreign Governments who hold U.S Debt(principally China!)..No one seemed to doubt the "Spinal Cord" of the American Dream to fail -- even though the "Blood Flow" of the American Dream i.e. Jobs were being lost in leaps & bounds during the last 6+ years...On top of it, came aggressive practices like Sub-Prime Lending to create more "Housing Flows" & thereby more Investment Opportunities (Ever heard about Betting on your House, with no money in your pocket??). U.S. Stock Markets(on a completely different plane) PEAK in October, with DOW closing in on 15000...
2008: So-called "Sub-Prime Bubble" bursts & boy, does it burst big-time? Investment Banks go bust, so do GSEs, next-in-line are Savings Banks, our 401K, next we know - the buzz is around that ATM machines may not work!..DOW gets halved(almost) to 7880.& the ironic-but funny- part was this was not a U.S only problem(though it originated here) - Iceland(yes, Iceland!!) went bankrupt because of this crisis & the British Government was suing a bankrupt Iceland..."Bailout" becomes the most used word around the world overtaking any popular keywords & world events...Everyone is starting to ask for a bailout from California's Governor - Arnold Schwarzenegger to Indian Banks, heck even some Retailers in remote parts of Norway & Greece...All why - I don't claim to know the "exact" reason - but when when you build LEGO BLOCKS - there are two kinds - one: you pull out any block, the tower breaks, the second: you pull out THAT block, the tower breaks!...My friends, this bubble is of the second kind...turns out that "every firm" located "anywhere" asking for a bailout now - has been directly or indirectly or super-indirectly betting big on a heavily risked Housing Sector in a country - where Jobs have been steadily dwindling, but Consumer Sentiments have been miraculously kept up due to Tradition & more importantly, Hope - guess why the supposed Global Whiz-Kids have been playing this High-Risk game - because No other Sector has been experiencing real growth in the last 6 years to consistently invest in on a large-scale.
The Trailer
We are going through some of the interesting times of our generation - influencing many parts of our life - geography, jobs, finance, communication & more..
Nothing Ground-Breaking or Innovative(oops, i'm 3 lines down scribing & i said the "I" word!) --- but Driven by some curiosity & Blessed by companionship of thinkers & introspective conversationalists, i thought i'd write a bit about a perspective on 'things'.
Hope it's worth ur time :-)
Nothing Ground-Breaking or Innovative(oops, i'm 3 lines down scribing & i said the "I" word!) --- but Driven by some curiosity & Blessed by companionship of thinkers & introspective conversationalists, i thought i'd write a bit about a perspective on 'things'.
Hope it's worth ur time :-)
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