Wall Street Bonanza

According to a NYT report, "Obama Calls Wall Street Bonuses ‘Shameful’" referring to the $18.4 billion estimated to be paid out to the bankers. Obama thinks that calling these crooks names will make them do better, while he hands them more bailout money.

Given the state of the economy it is interesting that all House Republicans opposed the stimulus spending bill. I overheard one Republican suggest that the bill will not create jobs, but giving $5000 vouchers to all will.

Ever-widening circle: of Greed, Corruption, and Devasation

A few days ago, I met some bright MBA students at a highly regarded graduate school in India. These students used the word "recession" in describing the Indian economy- they were quite apprehensive about the job market when they graduate in a year. Their attitude was quite downbeat, considering that India's GDP is estimated to grow in excess of 5% this year. In addition to the global macro factors, domestic spending seems to be curtailed, and corporate scams like the one involving Satyam are being feared. This was also reinforced during my discussions with academics and business leaders in India.

This experience ties in very well with the U.S. storyline. Some of my students who were promised internships for the upcoming summer are being informed that the offers are being withdrawn. Large firms like Starbucks and Boeing are doing RIFs (Reduction in Force). In addition, companies like IBM are stealthily doing layoffs. Microsoft, Intel and others have added to significant layoffs announced this month.

The root cause of these ailments to be addressed, rather than propping up the patient through infected band-aids. Highly corrupt, immoral leadership at the top of organizations-both in the private sector and in the government, is the source of these problems. For instance, rather than working on serious plans to educate and develop the workforce, Obama's team is working on creating a bank to take on the bad assets of other banks- effectively telling shareholders of Wall Street that their noble actions are to be blessed. Obama's actions thus far have been disappointing on this front, adding to the notion that his administration, like others, is morally defunct. More news is filtering out that managers of AIG, BoA//Merrill and others have fattened their wallets through the largesse of the government and the public taxpayers. One of the exports from the U.S. to other countries has been this type of greed and corruption.

The road to recovery, as reflected in the infrastructure of the U.S. and India, is tortuous and filled with huge potholes that can crater even a good vehicle.

End of a trip but the beginning of an Indian Education

I returned today from a three week educational visit to India with a colleague and ten students. This trip has been fascinating and every moment has been filled with learning, both about India and about ourselves.
Some striking aspects of India- every visible space is covered with some advertisement or another, cell phone etiquette is alien, traffic is horrendous, but people are just amazingly friendly and helpful. India, full of contrasts!

India- where everything is sacred and nothing is sacred

My current trip to India has highlighted to me, starkly, the contrasts in India.
On the one hand, all animals are considered to be holy in the Hindu land. Even the mouse is sacred- it is the vehicle for the god Ganesh or Vinayaka. However, nothing is sacred anymore in the real India. There is no space that is not covered by a poster or a sign or a billboard- even the surface of animals is covered. People are using animals for livelihood in many ways, including offering elephant rides. I attended a talk today where the speaker highlighted the meager amount of land covered by forests in India. In the cities, one barely sees any greenery at all.
Indians go to temples, mosques and churches and pray a lot- but not much of it translates into everyday actions. Actions speak louder than prayers.