There is something about the vanishing of a large global corporation that makes everyone sit up and take notice. It’s akin to the sinking of the Titanic – something that is considered huge, grand, unassailable and unsinkable. Not just because of its own size but more so because of the quality of minds powering it. But Titanics are mostly victims of their own inflated self, and in their high, long term, grand vision of their crownests often ignore that creeping iceberg that lies beneath the surface and inflicts unmitigated damage to their shells. Step into New York today and you will see a Titanic at every corner, some already confined to the waves of history, some struggling to stay afloat and hunting desperately for lifeboats. And sadly, these behemoths are not just confined to the Wall Street alone. Bigger, larger and grander Titanics across the globe are hearing that creaking sound in their hulls – a sound of metal breaking and a potential flood waiting to crash in.

The crisis, as everyone from Delhi to Dallas, tells you is one of liquidity and confidence. Or well a lack of them. In very crude layman terms, its about people borrowing huge sums of money and being not able to repay them. In a bid to stave off their hungry lenders, as they run around to borrow more, they are summarily dismissed by other lenders who now have no confidence in their ability to generate earnings from the money sought. I would add one more word to the description in the line above. In effect, this is a crisis of credibility. Credibility of banks, brokers, traders, speculators, merchant bankers and their ilk. And this sadly is a strong indictment on those running these institutions. Those ‘quality minds’ who exit the hallowed lawns of the brightest B-schools and then enter the bull ring of our financial markets. The knife twists further into the flesh when one realizes that the Balance Sheets that went broke were of those for which the ‘best and the brightest’ from these schools chose to work for. (TT Ram Mohan has provided an insight into how the hollowness of the so called intellect of these firms and the people who inhabit them in the Economic times a couple of days ago)

Not that there haven’t been crises in the economies before. But this one has a marked difference on two principal counts. Earlier crises have been closely driven by the real economy; the brick and mortar or the tangible elements – due to sectors, companies & currencies with weak fundamentals which you could see and their inability to drive promised earnings leading to a crash of over invested money put in them. ‘Fundamentals’ is a much used word in all that we read today. Simply put, it effectively means that if you take a housing loan of Rs 60 lacs and if you possess a full time job paying you even Rs 6-7 lacs minimum in a year, your fundamentals are strong at the time of borrowing; simply because you possess the means to repay the money, albeit slowly. The current crisis though is that of the unseen or more so that of the un-understood and difficult to comprehend instruments. Even those well versed with the financial markets are finding it hard to pin point where the trouble lies in the opaque Balance Sheets of the collapsing institutions. And the final defaulting debt lying on such Balance Sheets is distanced from the real economy (in this case the house sold on the mortgage) by a significant web of complex, inter woven and hard to unravel securitized assets.

The second major difference is that of risk appetite and its assessment. Economies pass through routine cycles of booms and recessions on account of heavy investments driven by a hunger to risk big for bigger returns. What is unraveling now is a risk appetite among major investment banks and other institutions that had gone beyond the roof. Continuing with our previous example, it’s a bit like you possessing an uncertain job (or no job) and your bank stilling willing to lend those 60 lacs to you. In what economists call the ‘rational human mind’, such business with no assurance of repayment and no collateral (another asset that will cover your risk of default) or bad collaterals will simply be labeled with one word – preposterous. And yes, this is pretty much the kind of thing that was going on in the US. The ‘best of the best’ rode this bandwagon and put more money in the hands of those who did not have the means to repay it, in the hope that if the borrower defaulted the underlying house for which the loan was given would be sold at a premium and money would be recovered.

But of course, you can realize premium on the sale of one house but not when all the houses are out for sale because everyone lent money in the same reckless way as you did. The prices crash (supply exceeds demand) and you simply have nothing to cover your backside. This kind of dealing is not an illegal act but bad and greedy investment. And bad investments, as we all know, yield no returns.

Some major home truths have emerged from this crisis which should guide the response of those in the thick of the action now. First, no matter how free and competitive a market may be, you still need a strong statutory/ government regulator to bail out collapsing institutions that can have a domino effect and derail a lot more than just their immediate neighborhood. Second, bad assets WILL NOT create good earnings no matter how much ‘smart analyses’ may justify it. Third, no corporation is above board or unsinkable. The moment the fountain of money runs dry even the largest giant will find it difficult to stand tall. And fourth, its time for all the regulators to pull up their socks. One cannot prevent an investment from taking place in a bad market but tighter solvency norms and higher provisioning requirements (effectively asking institutions to park enough money for the ‘rainy days’) need to be looked at anew to barricade future such spectacular implosions.

And all the players need to ask some serious questions. The ‘smart guys’ in the banks need to reflect how such bad investments were allowed a free run. The regulators need to question their norms and whether corporate governance fulfilled its role in preventing such a rush towards manic opportunities that have resulted in a zero gum game. The auditors need to ask themselves how they missed seeing that the assets reflecting against the loans taken were nothing but pieces of papers. And investors like you and me can do well to pay attention to the dissenters like Nassim Nicholas Taleb who argue that all those experts hypothesing over the market movements daily on our televisions, perhaps simply don’t know what they are talking about.

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Since my school days, when I started to develop an opinion on the happenings around me, I have always been critical of any attempts made to insult the intelligence of young children. I guess being adults, the distance that age puts between us and the children, makes us adopt this know-all, condescending attitude. The sophisticated name of course is ‘generation gap’. But my argument is not so much against this inevitable differing of viewpoints between two sets of people who stand at different co-ordinates of the time graph. My problem is with ignoring how the world has changed since the time we were in childhood and thinking that our kids are not smart enough. Two recent incidents reminded me of this belief and prompt these words.

My 12 year old cousin Karan lives and studies in Canada. An ice hockey and baseball freak, he isn’t too far away from his Indian roots as well. With relatives around, he takes sadistic pleasure in subjecting us all to his smattering of Hindi and Punjabi, often mixing up his tenses, phrases and expressions (‘I touch your feet’ becomes for him ‘Mein aapke pair khaata hoon’). Of course, all his Hindi is purely picked up from the television serials that his grandmother watches and which he is forced to watch as well as he waits for the commercials to catch his sports action. You might pass him off as any other North American Indian kid with his brown skin, accent and possessing knowledge of Indian customs that marriages, gurudwara trips or diwali gatherings have afforded him. But he possesses two qualities that would mark any kid out - inquisitiveness and observance. Out on a drive in the city with his parents, me and my mother, he started off on his usual trip of speaking broken, illogical Hindi. It was all fine before he suddenly turned towards my mother and asked her, ‘Aap Hindu ho yaan Punjabi?’

His mother wasn’t exactly enthused with the question and quickly responded with a ‘Karan, you don’t ask such questions.’ She turned to me and explained how schools in Canada discourage students from asking about the religious identities of those around them. At first glance, you would perfectly understand this dilemma of a newly multicultural and multi religious society. A society in which public display of religion is not common and not stressed. A secular state that would want religion to be confined only in the homes and places of worship of those who follow it. A state which perhaps believes that asking a person’s religion and acknowledging its difference from your own in the first step in societal segregation.

I must admit that at first I felt a degree of understanding towards this approach; till of course Karan came up with his response,

‘No! I am asking because agar aap Hindu ho to why don’t you have a bindi here (pointing to my mother’s forehead) and red colour (now pointing at her hair above the forehead) like all other Hindu women’

For a moment, we were all silent in the car. Karan’s dad, not exactly sympathizing earlier with his mother’s admonishment, announced triumphantly
‘See! He has a logic for his question’ And indeed he did. None of us knew where this kid had picked up concepts of vermillion and bindis. And how he had come to know its significance for a Hindu woman. His probing of religious identity was not to place a mark of segregation or assert affirmation with those around him, but simply an attempt to obtain cultural understanding. And in that sense we were all wrong to assume that his mind, even in today’s religiously charged and to an extent divided world, would function only on one dimension – a dimension of creating and not breaking walls.
I wondered later whether that tiny episode had a lesson for all us. Is denial of identity and closing of mouths to discuss it another form of segregation? Are we creating walls or breaking them when we seek to create a society where school kids are ignorant of the diversity of the cultures that they inhabit? And as liberals are we correct in being so squeamish about discussing religion with our children? Is it so hard for us to educate them and then set them on the path of moderation and tolerance? Why are we allowing Osama bin Laden and not our school teachers to introduce our children to their religion?

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The second episode relates to a 14 year old boy Siddharth, the son of one of my mother’s old friends from office. I recently visited him and by chance my curiosity forced me to have a look at his school textbooks. I was sort of making impromptu comparisons on the extent of change in the NCERT textbooks from 11 years ago when I was in the same class in which Siddharth studies today. In the middle of my exploration I chanced to lay my hands on a colorful and deftly prepared paper folder which had his details written on the face of it with some skillful crayon work.
‘My holiday homework’, informed Siddharth. ‘I had to do two book reports’. Inside were two pages of a A4 size containing his ‘book report’. I read the first one. It was on ‘Life of Pi’ by Yann Martel. As I read those five hundred odd words that he had written. I was a little amazed at the quality of the language as well at the abrupt nature of the presentation of the report. Siddharth probably sensed it,
‘I copied it from the internet’. That explained it. Schoolboy level detailing mixed with book review level kind of passages. When I asked why, he responded laconically that ‘who had the time to write so much’ and that he had done his report in the last week of his vacations. Now I am someone who really isn’t enthused about people substituting originality with Google, but I carried on as Siddharth next placed in my hands his holiday homework list. It was a bunch of 4 pages photocopied and stapled together (just the way it used to happen in my time – it seems the idea of mass computer prints is yet to strike any one in our schools). The contents of that homework did not carry any surprises for me. The only addition in the quality of the work required from the students, in the space of a decade, has come in the form of a Disaster Management project mandated by the CBSE. The holiday homework had a section for each subject. The sciences & mathematics required students to answer a set of questions which were nothing but a revision of either what they had studied before leave or would study out after leave. The social sciences and grammar subjects too could not think beyond the realms of the textbooks. In fact I was shocked to see that the Hindi homework required students to write a letter inviting their friend over to their birthday party! I remember writing such a letter when I was in class 3 and that was a good 17 years ago! Of course, in the world of CBSE, our schools and Indian education they still believe that a kid writes and posts letters to all his friends asking them to attend his birthday celebrations. The concepts of telephone and emails are as far away as the third millennium.

In short there was nothing in that bunch of papers that could have challenged Siddharth’s imagination and creativity. Perhaps the only thing that he would have enjoyed doing was preparing the cover of his book review.

What is wrong with our teachers and our schools? Why can’t we leave textbooks and courses aside for a month and a half in the year and let our kids THINK? Is it so hard to ask them to chuck their books and prepare a 5-6 page project on something that they have interest in? (Siddharth has an active liking for cars. In a brief span of twenty minutes he had given me all the gyaan about the new models hitting the Indian market). Why can’t we allow our children to be creative for once and escape the drudgery of ‘Answer the following in your own words’? I am not proposing that every kid has a fountain of creativity bubbling inside him but then is it so hard to assume that when faced with acting around a topical interest not just kids but even elder men find hidden reserves of imagination and creativity? And is it so difficult for schools to see that a diversified range of interests in their students will automatically lead to an enhancement of knowledge sharing between the kids themselves? Why are we allowing the unimaginative to recklessly suppress the imagination of our kids?

But of course these are vain questions; because from what I saw with Siddharth I was certain of one fact. Dinosaurs can reappear on our planet but to expect changes in the manner in which we teach our kids is asking for a little too much. On this teacher’s day, sample this thought.

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People got a little riled with all my camera antics on the vacation. Most of the family that was around couldn't comprehend why i was so obsessed with my Canon powershot (AS710). In the 12 days that i stayed in Toronto, i clicked close to about 1100 photographs...staggering you might think....it took a cousin to put matters into perspective - 'he lives by the camera'...for some of those days, i actually did

below are some pics that did not make it to the facebook and web albums...random shots...some which were noticed, some which werent by those who saw them


The name of the park was 'Maddil Common'. It was nearby the house where i was putting up...and on a quiet Friday evening (yes it was about 6 when i went there) it was absolutely desolate....quiet, windy and desolate

I took a myriad pictures from the top of the CN tower...this one was perhaps the best...447m above the ground (apprx 114 storeys)...it captures the skyline, the shadow of the clouds, a city strechting itself limitlessly and half clear half filled sky...

Taken from the 22nd floor apartment balcony, it isnt the cleanest picture...the balcony railings intrude in a significant part of it...but dnt make a mistake, the light is not camera induced sepia but natural...there was a slight drizzle and a setting sun when i took this snap...and the interplay of water (notice the drops on the glass of the railing) and light was something that i could not get on any other evening...

A picture that can almost pass off for a painting...a view of the east bank of the ottawa river from the river cruise boat

A quiet patch of woods....on the river bank of the ottawa river...

This is how small some of the islands actually were on the 'thousand islands' cruise that happens in a small town called Gananoque on the shore of Lake Ontario


The serenity of the lake front at Gananoque was only matched by that of the town itself....

In the background is the Canadian parliament house....as seen from behind a fountain at the ottawa museum


And finally the national symbol...the maple leaf...just beginning to dry from the summer

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