“When the balance sheet of a company does not capture the true costs and risks of its business activities,” and when that company is too big to fail, “you end up with them privatizing their gains and socializing their losses,”
– Nandan Nilekani. Co-Chairman, Infosys; talking to Thomas Friedman.
Sums up the whole sordid mess pretty well. But doesn’t really say anything for what needs to be done. After all the hoo and haah, it looks like still no-one knows what to do. One thing seems certain, a big cultural shift may be in order. It needs to be both at a common-man level (save more, live on credit less) and at a regulatory level.
Am I daft in thinking that a regulator needs to regulate? – Smoothen the bumps, both high and low?