2010 Year of SCAMS

1 -- LOAN BRIBERY CASE

Central Bureau of Investigation (CBI) arrested eight people, accusing them of bribery for corporate loans.

The arrests included the chief executive of state-run mortgage lender LIC Housing Finance and senior officials at state-run Central Bank of India, Punjab National Bank and Bank of India. The CBI is probing 21 companies involved in India's booming infrastructure sector for links.The bribes were allegedly paid by private finance firm Money Matters Financial Services, which acted as a "mediator and facilitator" for the loan beneficiaries.

2-TELECOMS LICENCE ROW

Telecoms Minister Andimuthu Raja's  ministry sold licences and spectrum below market prices, depriving the government of up to $39 billion in revenues. The scandal swept up as high as Prime Minister Manmohan Singh, who had to explain to the Supreme Court why he sat on a request for permission to charge Raja with corruption. The CBI has launched an investigation into alleged corruption at the ministry. Nobody has been charged yet and Raja has denied any wrongdoing. The CAG said Unitech units got licences despite having inadequate capital, Swan Telecom got a licence even though there were monopoly issues and Reliance Communications got undue benefits as it sought permission to offer services under the more popular GSM technology.

3 - COMMONWEALTH GAMES

The Congress-party led coalition government came under fierce criticism for mismanagement and ineptitude over the sporting extravaganza which cost up to $6 billion. Allegations of corruption spanned a broad spectrum including issuing of contracts and purchase of equipment -- from treadmills to toilet rolls.

India's anti-corruption watchdog has identified more than 16 projects with possible irregularities. The Congress party eventually sacked Suresh Kalmadi, chairman of the organising committee, as secretary of the party's parliamentary wing.

4 - HOUSING SCAM

Congress party politicians, bureaucrats and military officials have been accused of taking over land meant for building apartments for war widows. The CBI has begun investigating the case. Local media say apartments with a value of $1.8 million were sold for as little as $130,000 each in the apartment block, which faces the Arabian Sea in one of the world's most expensive stretches of real estate in Mumbai.The government has sacked the chief minister of western Maharashtra state, Ashok Chavan, who is a member of Congress. The apartment block is also being investigated for several violations of norms, including environmental laws and land-use rules.

Euro Crisis

Fiscal crisis, contagion, breakdown of the euro...

Let,s try to understand what had happened.what actually had caused this crisis whoose impact 

is still prevailing and will continue to prevail in coming time.Five reasons that had given birth to such drastic issue were:-

1)Fiscal revenues in excess of expenditures :-In this case, investors require higher interest rates to subscribe new public debt as a compensation for the risk of insolvency. This in turn increases the risk of insolvency as it worsens public sector balance sheets. At some point, there may no longer be an interest rate able to compensate investors for the risk of insolvency; then they just stop subscribing the public debt.

2)in the case of Greece, monetization - was ruled out by Greece’s membership in the European monetary union: the Greek government could not force the ECB to buy its own bonds. For this reason, the only option was insolvency and renegotiation of the debt, unless other countries were willing to lend to Greece at an interest rate lower than the market rate.

3)Fear of Contagion

4)The fourth element that has played a role in the crisis is “roll-over risk”. Countries involved are exposed to a fiscal crisis to the extent that they are forced to rely on the market to roll-over their debt. Thus, much depends on the amount of public debt coming to maturity in the next months.which had not turned out in favor.

5)Euro had depreciated .