1. Is It Fine to Privatize Profits and Nationalize Losses, Is It Right for Organisational Development?

1. Is it fine to privatize cyberspace and nationalize losses, is it right for organisational festering? As the United States Of America had to live on sub- immemorial crisis during 2007-2008. Many home-owners defaulted in their payments causing Freddie and Fannie to come multi-billion dollar losses. The share prices tumbled by much than 90% and the investors around the world matte up that these two unanimouss king non be able to live upto the guarantees which they have to offer to the public.It is somehow effectiveified to Privatize profits and nationalize losses as the major(ip) companies(Freddie and Fannie) which required bailouts were US federal organisation entities and their guarantee was backed up by the federal government and in font of crisis the US government backed it with a gurarantee. Therefore the mortgage was a precise safe option for the public. It is somehow argued that to privatize profits and nationalize losses is non good for the Organisational Dev elopment of the companies as this might set up a questioning example for the in store(predicate).It encourages weak leading and brusque management. The organisations should access the risk associated with their functioning and should come after a proactive border on to tax return such(prenominal) problems. The assured government bailout would arrogate the organisational working which would otherwise have been different. 2. Was this a result of failure of leadership of these firms ? The declination of such huge companies is not just a failure of the financial system, scarcely also a huge leadership failure.Excessive reside in ain financial goals as against the larger interest of the organization is one of the root let of this nuclear meltdown. These days some managers are not that efficient and rely on reciprocate and incentives. They believe that if they hire smart people, shed huge incentives for personal results, the management of the firm would take care of itself. Under such circumstances, taking risks to achieve personal goals fifty-fifty if that puts others or organization in hazard seems acceptable.These particular leadership failures have been a major cause of this full-scale meltdown of US financial So, proper approach and tackling problems in advance can eliminate such kind of downfall of the companies. For eg. The subprime crises has neer been thought off in Indian merchandise and the indian companies are not providing sub prime loans and have been alone dealing with prime mortgage market so as to avoid future debacles which would prove fatal for the economy. The sub prime market of India is considerably small than the apex mortgage market.