Global markets are reeling under immense pressure. There is a talk of recession almost each day. The wind has just blown out of the financial sails for most of the economic superpowers. Germany has unofficially announced recession. Baltic countries like Kazakhstan and British country like Ireland have just declared bankruptcy (though unofficially again) Asian new-sprout Pakistan is dead in the doldrums. Political caveats here have opened doors for financial vacuum.

India is already looking down the barrel. It had resourced large-scale funneling from the foreign markets. With the FII sell-outs on the bourses, the Indian Sensex gives an impression of constant collapse. Inflation is on an incessant rise and Indian rupee is consistently weakening against the dollar.

All this has been perpetrated partially by the sub-prime mortgage crisis in America. Lending money to the under-banked without earnestly judging their credit history has come up as the Achilles’s heal of world’s top superpower. It is widely argued how a man with monthly revenue of $1000 could be expected to pay as much as $700 as EMI. Proposed foreclosure moratorium might be the needed breather.

Large scale oversubscription of companies had helped them create false financial castles in void. With the latest audit stock, the companies have come into the dubious light. Lehman group is just the proverbial tip of the iceberg.

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