| Author | Message | ||
     Andhramass Bewarse Legend Username: Andhramass Post Number: 52085 Registered: 07-2006 Rating: N/A |
In fact, the US economy has become dependant on the stock market. When the stock market falls, the economy falls. Instead, you should follow the German model where pension funds are banked. The social security system of Germany is based on banking model and not on stock model while American social security model is based on equity model. Germans seem to be far more successful because Germany is the only country that is running surplus budgets. It has also surplus trade balance. And, we are basically a bank based country. Only two per cent of the savings gets into the stock market. That is why the government is able to meet its deficits. This year, we will be depositing Rs eight lakh crores (Rs 8 trillion) in the banking system and the government will be borrowing Rs six lakh crores (Rs 6 trillion). If the people put money in the stock market, the government will become insolvent in this country. And, the prime minister of this country said four years ago, if I recollect, don't go to banks, go to the stock market. But the country didn't listen. Our culture is aligned to the banking system. anni dananallo Annadanam Minna lal salam |