Prime and Subprime

I can clearly remember, there was a point of time, when in order to convert dollar to rupees, you used to straightaway multiply by 50. But guess what, now it is down by almost 20%, 39.6 as of today. Well... there are a number of factors contributing for this.

1) Baby boomer - The products of baby boomer after world war 2 have now gone past their past retirement age. Somehow I am kind of bamboozled over the concept of baby boomer. May be, after the world war was over, all the soldiers started for their homes and fucked all the women they could find on their way back. Thats the only reason I can think of. Anyways. So, these so called products of baby boomer didn't really added to the population because "staying single" was in air at that point of time. So effectively, now as these guys are dying/on the verge of dying, there is no one to take over. You might say there are Indians and Chinese to work there. But come on, most of us are there in reputed jobs, and even if we are providing some of the labor/cleaning work, we are not good enough for the whole of USA. And we have this policy of "sending money back to home". So knowingly or unknowingly, we do end up helping our economy and screwing their economy by a bit.
According to the policy in US, government takes care of the old/retired people, with the money they make from taxes. But no people to do job, no money to tax. So we have a lose lose situation there.

2) Subprime - Subprime is basically a low value asset in which you end up investing in the hope of getting good returns. As it has been rightly proven now, its only a short term profit plan and might just slit your throat in long term scenarios.
For instance, during the property boom era, the banks ended up giving humongous loans to individuals with no net worth. They did charge higher interest rates, but they ended up giving benefits like no principal payments. When these individuals found themselves incapable of paying back, the banks had to acquire the property they had invested in. By this time, the property bust balloon had burst and it was more cumbersome for banks to get rid of it. So finally, it was the bank who has to incur the loss.
Isn't it really shitty way to make profit.. Only American idiots can do this. Somehow I love to see them making fools of themselves. May be that is why I enjoy watching Family Guy so much.

Its a well known truth that when something matures to a level that it cannot go ahead, it breaks silently and just fades away. Well... I am not saying their economy is screwed and they will vanish sometime soon. But they are surely falling behind in the rat race of BRICs. Who knows, someday in near future, we might end up getting cheap labor from the US of A...