In such cases, operating at a negative cash flow wouldn't have been lucrative to some prospective investors, and it wouldn't have been an option either. Given all this at a global scale, its worth to wonder how all this came about? Where did it all begin? Who are behind it? Well an average Motswana or a smart person would simply say, it all began in the US since it controls the world's economy. The man on the street would have their fingers pointed straight to their government regulators on the other hand. These schools of thought are too vague and I hear them all the time but as it turns out, both are correct. It's only that the information asymmetry exists between the two. This is what I would love to call "literacy divide". As per our vision 2016 pillar number three-an educated informed nation, one would have thought that, instances like these would have been rare by now, but unfortunately that doesn't seem to be the case. To bridge this gap and give perhaps a clear picture of the roots of global financial mess for the sake of my own countrymen, who have been denied the privilege of knowledge and left out in the dark side by our local media and our academicians, allow me to share the information that I have on the roots of recession though I am not an expert. Nevertheless you don't need to be an expert to know this; actually you don't have to be one, it all depends on one's interests and passion.
Having said that I have been following with great interest, this global economic downturn, since from the beginning.Basically, in the financial services sector or market, there exists a 21st century type of a profession termed Financial Engineering. Financial Engineering is the application of mathematical methods to the solution of problems in finance. Financial Engineering draws on tools from applied mathematics, computer science, statistics, and economic theory. The individuals who invest in their time studying this field are known as Financial Engineers. These high profile individuals are popularly known as QUANTS (at the highest level) more especially at the US (Wall Street), UK and some parts of Europe. An individual of this calibre build some financial models to come up with some new financial instruments which drive the financial market.
