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crisis in the global economy and the proposed new model for sustainable development.

The ongoing turmoil in the global economy increases the doubts that current model of capitalism can not for the environmental and social reasons be maintained. Respected thinkers and scientists have pointed to this reality. Now we should look forward to a new system that is sustainable and humane. Otherwise, what wealth would be wiped created by environmental disasters and social upheavals. Whole system is complicated by a lack of transparency. It is not clear where all the money is invested. Hedge funds are shrouded in secrecy even bailout money has no effect disappeared on the economy. Even now nobody knows the real bad toxic assets, so do not even recovering stock market.
In this paper some important issues discussed in this crisis and a new model is proposed that a balanced global society globally conscious, active and sustainable engineering.

Let

What CEOs
overpaid us think about some news that caught the attention of the world. Washington Mutual Chief Executive Alan Fishman could walk with more than 18 million dollars in salary, bonuses and severance after less than three weeks on the job as a golden parachute of WaMu flight in danger, according to the conditions of his employment contract. Lehman Brothers was given $ 23,000,000 to three executives just days before it collapsed. She paid 2nd $ 5,000,000,000 bonus fund after failing. CEO of American Express looked up paying much more than doubled, although shares price nosedived. Hewlett Packard CEO destroyed half of the assets of its investors and still earned almost $ 100,000,000 in total payments. Exactly the same is the case with Informix Software’s CEO. The list goes on and on. It means what? This is not a polemic against the manager to pay. Point is the failure has become a recipe for financial success of the CEOs, especially in America, by their intelligent manipulation and abuse of power. Martin Whitman, the great economist and advocate of capitalism meant that, apart from the corruption of another reason why a free market is likely to fail is very exorbitant levels of executive compensation.

What

free market
I do not believe that free market is really free. Those who say who they are in favor of a free market to speak in a relative term. In an absolute free market economy, all capital, goods, services and money flow through the government regulated. There is simply no free market is not yet, because the degree of state intervention in the capitalist countries. For example, the U.S. government an 80% stake in AIG in return for a 85 billion dollar investment for the company has saved. Recent news from Citi Bank is given a bail out package of 326 billion dollars and are significant for the requirement of the Jaguar one billion pounds for the sustainable economic meltdown. Under pure capitalist theory, should not have taken these measures, the government should have stood idly while the economy tanked. So how can a free market be free, if it’s regulated? The fall from the free market economy such as Black Market, economy, drug dealing, essentially justifies government intervention to rectify the situation, and lays the argument against the free market as an impractical ideal, which produces wealthy vested interests. Experiments in absolute adherence to free market principles evince signal failures in military, road, health care, community, education, R & D etc. Free market economy is a fantasy – outside the boundaries of reality in a complex system with opposing interests and different distributions of wealth. Time and again the world is realizing this fact is a difficult road. Therefore I have with those critics who are in favor of a planned economy as advocated by socialism and the alignment of the associated markets with greed as the basis of capitalism. I think it is inherently immoral. More than a practical objection is that free market economy does not take into account externalities, ie effects of transactions affecting third parties, such as the negative effects of global warming, the world brought about in the foreseeable future apocalypse. I suspect that in well-run industrial economies such as Japan, Singapore and China, there is the marriage between the government and the private sector, everyone benefits from the other. Any temporary prosperity on a very strict concept of the free market can collapse like a house of cards, as happened in the U.S..
What nationalization and regulation.
What does the U.S. government takes control of financially crumbling mortgage holders Fannie Mae and Freddie Mac with a bail-out package of the staggering 800 billion? Why on earth Fed and other regulators are coming into the picture, particularly for some of those who have overextended with the subprime mortgages and other types of debt? Nationalization occurs when that is full or partial control taken by private financial institutions to avert a crisis in the rule. Scandinavian nations successfully averted an economic meltdown by nationalization in the early 1990s, and in recent times. U.S. government will do likewise. He looked at the global precipitation and how they are viewed politically by the world powers. And they saved the financial sector, but not so easy to arrange for the car industry. These issues will be with the power, military, oil linked.

What mortgage financing
It was the proponent of capitalism, the benefits of credit facilities and low interest rates be promoted for houses owned by people of low income group. There were huge marketing effort, people inside the garden path. Logic was simple. When buying a house, he will also buy free household goods such as furniture, fans, AC, car, etc. create a demand in the economy. Banks also extended the moratorium on interest and convince basically up to five years to the borrower. When a crisis breaks out, we should co-branding people as “lazy loafer”? It is also unfair, lost the common investors for speculative capital, if by Stock Market System institutionalized as a socially responsible and ethically valid means of income.
What targeting CEOs
In our capitalist system, you are free to what you can, and what the market will bear, do not deserve this logic, are not valid, since large companies are increasingly dependent on public money for a bail-out. I therefore support the latest trend of shareholders in raising questions and pressure on the board and compensation committee to ensure that fair compensation, but not exaggerated. The interesting news was that blunt U.S. legislators questions for CEOs like Wagoner, Nardelli, Mulally GM, Chrysler and Ford, the Capital Hill with a begging bowl for 25 billion of taxpayer money, if any of them drew fly’s in- individual private jet, when as many as 24 non-stop flights daily flights from Detroit to Washington. Lifestyle and salaries should in any case, a legitimate question, if companies are using public money. That is why companies are facing, “say to pay” decisions by shareholders. The Board should have taken over this role, but they usually abdicate it. Most CEOs consider keeping board members happy as their primary tasks. For example, paid the board members take on an all expenses trip to a five-star Resort International, which advised its compensation for the out of control, which is nothing but intelligent corruption and abuse of power.

myth about the CEOs ‘pure value-add’ in the corporate world.

takes for a company to be successful billions of variables that are often beyond the realm of human ability of an individual. Even with our full Narayanmurthy regard to the ability we have to accept Infosis success was mainly due to the flattening effect of the world through Internet revolution in 92nd Jerry Yang, co-founder of Yahoo, will be a great CEO, had to step down under increasing pressure from investors after he failed botched takeover talks with Microsoft Corp and an online brokerage advertising agreement with Google Inc., many CEOs were rated high for some techno bubble, which has to be completely divorced from any business purpose whatsoever. Of course there are some positive effect, it attracts investment and accelerate the pace of innovation. The trophy cases of HP CEO industry were so many prizes and awards crucified for their destructive reign of terror with ‘Silicon Valley greed. ” Therefore, it is fundamentally wrong to authorize an individual so much for the success or failure of a company. In Japanese and Chinese model system is attributed to more than one individual. Once all-powerful CEOs, is they are reluctant to challenge their leaders. Instead, the natural tendency for dominant leader is to be cocooned from reality. They are only told what they hear and hear only what they want to be told. Sequestered from the rest of society, they lost the pulse of the economy eventually.
What capitalism versus socialism
The extremely clever indoctrination, a spin-off of advertising primarily of U.S. type, our thought process is always clouded drives us towards greater personal interest, freedom and power as a social responsibility. Do we really large waves of money sloshes around the planet daily profit generated by only a few, often displaced by waves of speculation in the situation economies? Do we need larger and larger companies that concentrate economic power in fewer hands? When viewed in this light that capitalism has a dark side. Economy in its root meaning ie to acquire the basic material things we need to live a human life: food, shelter, energy, etc. But this is something completely different than the search for a so-called higher standards of living. This really is the endless search for a higher rate. Our material needs are limited. After a certain point we are simply beautify it. Then we will begin to distort them, making them the bearers of our own disordered desires. Latest News from bra and panties for men in Japan is the right example for such a disorder. We need protection, but we do not need 50,000 square Trophy homes, if not billions of people can afford once a slum. Now we are in a time where we do not live ashamed once. We have gotten so much closeted in us that even with the back of enormous wealth, we feel insecure with the slightest possibility of economic collapse. Capitalism drives us shamelessly become consumers and lead our lives according to the design of contemporary social machine, the world anticipates the destruction, while our true nature of a life favors closer to nature. If American capitalism is a kind of religion with its own dogma, then their God is money and its driving force is greed. The fall of this ruthless system is obscenity by unemployment, homelessness and economic uncertainty and is therefore not sustainable in its current form. The whole system is designed so that fewer people richer and richer at the expense of the resources of the multitude. It has definitely below the level of consciousness and no longer works for us. I understand a very simple thing – goods and services produced in an economy must be shared fairly in a population. Otherwise, those deprived to take refuge unethical or socially unacceptable means theft, dacoity, terrorism, drug trafficking, murder, fraud, politics is narrow and what not. Recent examples of daily terrorism, piracy, Mao attacks, killing the dark pointers to this fact.
are also confronted in the U.S., the people of the dark side of capitalism, when blue collar Americans were losing jobs because of outsourcing and offshoring in the mask of progress for the actual intention of the more profit. What is the social damage? Skills developed for the production of a particular product over the years are getting lost in society. Capitalist countries use capitalist ideals as a matter of convenience. When state hospitals, libraries, transportation systems, utilities, Army, Navy, Air Force, forests and national benefits and yet, who would give examples of socialism, these institutions have? Socialism means a Government in which people jointly own and democratic management of industry and social services by an economic democracy by ending the waste, duplication and inefficiency of capitalist industry. Under capitalism, the industry is working for one purpose – to maximize profit. As earnings per capitalism is also the cost of accommodation in the industry. Socialism and manufactured goods for use and to satisfy the needs of all people. Under this system, everyone could live well without huge gaps between rich and poor. If it is not really human? Just because a system is not necessarily lower than ever say the advantages of human nature, greed, should not be rejected. Socialism is talking about higher meaning of our existence and human values. After the dissolution Industrial Act 1956 in India, the socialist economic model in India a wonderful developments in areas has produced up to seventies. Therefore we can conclude that socialist system wonderful results under certain conditions and social environment to produce. However, I agree with classical form of socialism can not in consideration of the individual brilliance and creative endeavor that is likely to exploit their one of their weaknesses.
The New Model
With these words, we should find out whether there should be a balance between the two systems and what kind of mechanism to develop society, so that the ideals of the good life in its individual life and in the approximate life of the community, of which he is a member. I feel it is possible our modern global economy, while socially, culturally and environmentally responsible at the same time. The company has to go through a difficult paradigm shift in personal values, a degree of awareness in our minds as opposed to the blind, materialistic way we live will inspire.
I have a model that balanced global society that is globally aware, active and sustainable technician thought. Way out is to lead mankind from the collective wisdom of the most talented people in a society or a country, a kind of meritocracy. mechanism is to use collective wisdom, we say for every policy and contentious issue, which reviews the most important people of the country through a network of computers to collect and looks into the wisdom of the people, most outstanding knowledge on the subject still considered decision can be made in real time. Your credit can be rented for a fee, may, on the basis of the performance etc. Decisions can be taken in National Forum, where discussions and debates are justified to be selected. Experiments can be interpreted the research and its impact of significant people and that the only reason why collective wisdom as the instrumentality for Decision Support System, a model be worth a try. It can be argued, country needs not only knowledge from books culled dry. It needs leaders to make certain things happen to be. Yes, leaders are required. But a leader of collective wisdom, which should be competent in high elected. A leader is the collective wisdom of Infrastructure, at least for important decision. The collective wisdom is likely to land the right direction Veer. Mankind has indeed developed several attempts to go and what better model to those followed and perfected over time. We should never be blind to say that is capitalism or socialism is the right system with dogmatic finality.