Monday, 6 October, 2008

The confusion of financial system and me.

The entire financial system works on debt.
Its like I buy something, where someone ( bank) gives the assurance that they will gurantee the payment now, in turn bank 'trusts' me that I will reply the debt to bank with a 'cost' associated with that assurance.

It all started from the fact that I should have the means in the future to pay the debt back. What's my assurance - my plan or expectation in future!

If something goes wrong in future - I will be ruined as well as the bank's commitment. If everything goes good - I will make good forture as well as bank. But, I fault - everything is gone.

It starts from me. What if I dont buy something on debt? what if I have decided to save first and then buy - my growth will become slow. But, I think misery will help in long term... But, let me be selfish - what about the time which I 'waste' till I save enough wealth to enjoy these things...

Confusion ???

But, I believe in all practical purposes, its the conservatice financial management is what is more sustainable.. Atleast you have a moral happiness that you did not ruin some stranger to make your wealth ( as in the case of stock market).

I am still not confortable with the way stock are changing hands in stock market. Something wrong.. no one looks at company and its products. Its only buy and sell and get the profit!!! pure speculation.. its the speculation that spoiled that entire system.

My pledge - I am going bit concervative.. cut down my expence ( so income for some others), try to invest in something really 'productive' i.e., create some product or service which brings some wealth rather than some trade on promises....

Its my thoughts...

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