Hot on the heels of an article that argued that state regulation of India's financial sector stopped a similar bubble from being created in India as was created in the U.S. (though I still say the jury's out), we have yet more word from NYT that neoliberalism-as-an-actually-existing-system is not exactly a magical land of privatization fairies and anti-corruption dust sprinkled upon the ordinary investor, let alone the median-income (poor) Indian:
NEW DELHI — Satyam Computer Services, a leading Indian outsourcing company that serves more than a third of the Fortune 500 companies, significantly inflated its earnings and assets for years, the chairman and co-founder said Wednesday, roiling Indian stock markets and throwing the industry into turmoil. The chairman, Ramalinga Raju, resigned after revealing that he had systematically falsified accounts as the company expanded from a handful of employees into a back office giant with a work force of 53,000 and operations in 66 countries. Mr. Raju said Wednesday that 50.4 billion rupees, or $1.04 billion, of the 53.6 billion rupees in cash and bank loans the company listed in assets for its second quarter, which ended in September, were nonexistent. Revenues for the quarter were 20 percent lower than the 27 billion rupees reported, and the company’s operating margin was a fraction of what it declared, he said Wednesday in a letter to directors that was distributed by the Bombay Stock Exchange.
Set aside the fraud issue for a second, which is more an issue of political and corporate culture, regulations, and ideology: What does this all mean?