Apropos the column 'The centrality of cash flows' (July 2), cash flow is to economy what oxygen is to life. It is the assurance of one's hard-earned money safely resting in vaults, ready to be spit by ATMs that keeps the masses calm and assured. The very thought of one's money getting locked up is bound to lead to a mass withdrawal effect, sure to further stress the already distressed banking sector and cause a chain reaction on the economy.
This is happening all over Greece as it battles out between the referendum and bailout package. Photos of people lined up all over Greece seeking to withdraw money, as banks put restrictions on daily withdrawals to further restrict credit availability, speak about the unrest and fear among people. These images have been a common sight of recessions and depressions that the world has endured. And the point actually is not that politicians don't understand, they just indulge in playing around with public money without a second thought. Tonnes of debt piling up, yet countries refuse to take corrective and unpopular measures at the right time. It is only when a push comes that things are set in motion. Time and again, a country shall falter and slip only to auto-correct the markets and remind us all how weak our systems are.
Gaurav Gupta Pune
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