USA Economy and its Financial Crisis............

Friends,
I am trying to look through US economy and the financial crisis.My interpretation maybe wrong as I am no Economics guys.I am science student and by default came to stock market and then I get interested in stocks and cos and went on making certain rules for investing in market .What ever I have written about the investing and what to look and when to look , maybe they are age old saying of investing in stock market but then I have never read any book on stock market nor read any Masters like Wareen Buffet ,Benjamin Graham,Peter Lynch or Charli Munger etc etc.....
I always thought that learning by mistakes is the best process and hence never bought those books where scores or thousands of investor use to read and follow.
Moreover, investing is a RISK and one needs to be daring in nature to invest in certain co at very early stage when no one is looking at.This type of investing needs lots of daring and this Daring comes from within or say it comes with birth.One can't learn it and that is why there is only one Dhirubhai Ambani or one Warren Buffet.
I also feel that more the person is acadamically qualified more he is defensive in nature and that is a big negative for investing.When person starts thinking in defensive manner, like say what will happen if the cos do not do well according to what is said by management then he will never invest in it.That is a draw back.Well,those who invested thinking that A gr stocks are the best to invest must also be repenting in this scenario.
There is nothing like good co or bad co, good management or bad management.Market is the slave of earnings and as soon as market sees that the stocks starts moving.Maybe sometime market takes time to show that but patience is always rewarded.
In both the above example eg Dhirubhai Ambani and Warren Buffet , they were average in studies.They were no great scholars.Actually Dhirubhai Ambani was just a matriculate.Just try to read any big business man they were very mediocre in studies and the likes of Bills Gates , oh! they were dropouts from college.Bill Gates even didn't complete his colloge.
What makes them successful?The Vision and clarity of what they wants to do.....and the way they stick to their Goals.
Anyway, coming back to US Crisis, I feel that US economy can still go down.They have deficit of $700 bn and how they are going do that ?How they are going to fill the gap?Their export is just arms and ammunations.US do not make anything they imports everything from world over.US has taken billions of dollars of loan from all over the world through treseury bills and they will have to pay it back.How they are going to do that?Not a single American belives in saving.They just save for Old age , and that too if they have good job otherwise they live on paycheck to paycheck.I just read today that a 90 year old man lost $7,00,000 in this financial crisis and now at the age of 90 he has to work at $10/hr! That is just rediculous.How can a person at 90 has to work at this age at just $10/hr when he needs to sit with his great grandsons and have leisure and have great time he has to go out and do the job?
Is this the American System and is this the way people are going to have to bear the brunt?I think there needs to be some radical changes in the whole thinking at the Top man at White House.The CEO's became arrogant that they didn't see what was happening in the financial world and went on creating mistakes after mistakes and to cover one mistake they went to do other mistakes.These CEO's were just interested in their fat salaries and they are the culprit to bring the economics crisis.I just am not able to understand that after infusing $700 bn still the US crisis is not taking name to subside anyway.Obama is ready with another $700 bn stimulous pacakage but will it end there!Bear Stren, UBS,Citi,Lehman,Goldman Scahs etc etc are all drowned in the credit crunch.New skeleton is coming out one by one and there seems to be no end.People are loosing money in 401k and IRD.People who put their money in these plans have lost $1,00,000 to $7,00,000 and more and the pity is that these are people who are in very old age and they needs the money badly and they have lost everything.How this type of incident are going to be averted is a big big problem.Now US government is thinking of nationalizing all banks but what about the money lost?Who will pay that?Being sick is a CRIME in USA.The bills goes so big that never a person can pay it in his whole life.If do not have Medical Insurance you are gone.Even with Medical Insurance one has to still dole out money and that can go to 5000 to 10000 dollars according to the treatment.
Obama is saying he will takecare of this thing but what he will be able to do needs to be seen as the Pharmaceutical Lobby with Doctors is very powerful.They will never let happen that way.
Printing money and infusing in system makes no sense.That will give rise to inflation and that will increase the turmoils of people in America.What America does is SPENDING, they just spend and nothing else.The Auto sector eg GM,Ford , Landrover,Jaguar etc are good for nothing and all had gone bankrupt.Thousands of people has been laidoff.The unemployment figures that has come is highest since many decades.Housing is down and that is the biggest stimulous of USA.When that is down who will survive.Obama is talking of putting a brake on outsourcing but who will do these jobs ass cheap as Indians?Any IT Eng gets no less then $70,000 and that is Rs 35 lacs.Who is going to pay this type of salary to the IT Eng in USA?Where as same jobs is done in India with just RS 60,000 at any BPO ceentre .Just compare the figures.Maybe IT Eng gets more salary but is no where near to the pay USA will have to pay in USA perticularly when the chips are down for US company and economy.
I am just giving an example.I bought a Lexmark printer , a wireless one.I installed the software but didn't do it correctly and hence with UBS cord it was working but not without it.I called Lexmark and asked for the assitance and you know where I was connected?I was connected to Banglore.Now why Lexmark has to give customer service work to Indians?Naturally it is coming very cheap.That is the catch and to put it properly, the things were done very nicely and precisely.The wireless software was installed again very properly and the job was done greatly.Now tell me where in the world US will get this type of work done with 100% customer satisfaction and that too so CHEAP?Nowhere in the world but India.
There are almost 50% of population who do not goes for College.They drops out from school or just complete 12th and leave the school and start earning at $9-10 /hr.They think that they will earn and then go for college but that never happens as once you start earning it is diffcult to leave that job because the money that comes in the pocket makes you feel not to go for further studies.I have seen that once you leave the study it needs lots of guts and determination to go back there and hence I feel that Indian way is the best way for all children.First complete the studies and then take the job.Focus only on studies and nothing else.
On every new day I am hearing newer and newer scams coming out.I am not sure where it is going to end as still the credit card crisis is still to surface.
Let us see, where we land............but on optimist note let me write, it has to end somewhere.....