Honestly it's so easy for wealthy richest people to take huge loans and make money from it. Also some companies siphoned off money to other entities in disguise of expenses.
When they start losing, then apply for insolvency and ask creditors for settlement which means lower pay.
Great example of Privatize the gains and socialize the losses.
Can a small business owner does something like this ? I guess never.
Stuff like this happens everywhere. The reason it's different in India is that a lot of times the banks are PSUs. In this case, too, the bulk of the loans are by PSU banks. Ideally, the PSU factor wouldn't be there, and it would be a private bank losing their own money based on whatever risk management policies they've applied. If the PSU factor would be removed, we could look at these events more dispassionately.
Excellent post, this. Thank you.
Honestly it's so easy for wealthy richest people to take huge loans and make money from it. Also some companies siphoned off money to other entities in disguise of expenses.
When they start losing, then apply for insolvency and ask creditors for settlement which means lower pay.
Great example of Privatize the gains and socialize the losses.
Can a small business owner does something like this ? I guess never.
This stuff just drives people so angry. Never any real consequences to the decision makers.
Do you think it a more common in India?
Stuff like this happens everywhere. The reason it's different in India is that a lot of times the banks are PSUs. In this case, too, the bulk of the loans are by PSU banks. Ideally, the PSU factor wouldn't be there, and it would be a private bank losing their own money based on whatever risk management policies they've applied. If the PSU factor would be removed, we could look at these events more dispassionately.