Post Mortem report for the economy : by the G-30

The financial turmoil began with the collapse of Bear Stearns, bolstered by the Lehman Fall and the humbling of AIG and Merrill Lynch. What next? The panel of economic doctors are here to tell the world- how these giants died, what was the cause of the disease, and how do you prevent the next gen from being infected!

Yes, the G-30 team, which includes Paul Volcker, former Fed chairman and economic adviser to the president elect Barrack Obama, Euro Central Bank Chief Jean-Claude Trichet, Larry Summers..and so on. Surprising why all the great names speak up only after a crisis, why not hen they were at the helm of things or when their "opinions" could have really averted disasters.

Nonetheless, let me sum up the G-30 report to fix the financial markets in brief for you.

• Banks to have stricter capital requirements
• Banks to be under Central Bank's glare for proprietary trading activities
• Conditions similar to the Glass Steagall Act that was repealed in 1999
• Hedge Funds may have to reports to a regulator, may be subject to stringent capital and liquidity requirements
• OTC Derivative contracts may be subject to proper regulation

All In all, they have woken up to a new reality. Or may i say they are presenting to the world a probable new reality in the wake of dismal financial performance by many industries. This looks good, and would probably hold good, till the next big fall and another post mortem report holds out that all that was valid till date was grossly inaccurate and always demanded change.