Muscat Finance Company organizes corporate gathering in Muscat
Apr | 2009
MUSCAT -- The world needs a more just and humane economic system in order to come out of the current global economic meltdown. This was stated by Farouq Irani, India's celebrated expert on finance, in his address to a corporate gathering organized by Muscat Finance Co Ltd here yesterday. Farouq said lack of ethics and a couple of other gigantic forces caused the current global crisis. He outlined a few factors that caused the global economic meltdown.
The first factor was the US Federal Reserve's belief that pumping money has the potential to solve problems by bringing the demand up. This attitude toward monetary policy management is one of the root causes. The second causative factor was the spread of toxic assets (built in the subprime crisis) throughout the world, with clever instruments of securitization and supporting derivatives.