World markets crashed. Huge market correction occured in last few days. FII’s have lost lot of money in US markets so to level it off they are taking money off India markets because they have already made profits. US stock market crashed because of greedy investment banking firms lending money (mortgage loans) to people who don’t have enough financial power to repay them back. Now these people have defaulted on their loans and bankers lost lot of money. Investment bankers have not followed best practises in lending money. Remember these investment bankers are publicly listed companies. So in the end, public who bought the shares of these companies have lost money. Now everyone want’s US, India govt and also US Federal reserve to intervene and give some concessions (rebate checks) to public so that they can spend that money on buying goods and revive economy. Bottom line is that bad investments have high risk anytime.One should be prepared for rough times like these. Having made bad investments one should not complain when the value of them goes down. Also, there is one saying that when you see lot of people going for something your might already be too-late for it. So take calculated risk with which one can live
.
From last few days everyone is writing about the mistakes everyone (including me
) had made but I wonder where these paid analysts were when the markets were spiralling. Check this article.