Are we More Corrupt than Ever? - The Daily Reckoning
The Daily Reckoning by Bill Bonner
On This Day - 26 May 2012
Are we More Corrupt than Ever? A  A  A

- By Asad Dossani, Author, The Lucrative Derivative Report

Asad Dossani
Each day when we read the news, there is a certain probability that there will be a story of a new corruption scandal. It happens regularly enough that we are not usually surprised by it. There is a Wikipedia page entitled 'List of Scandals in India', and it lists all the major corruption scandals that have been uncovered, going back to the 1940s.

What is most interesting about this list is that the number of scandals increases year by year. The last three years have seen the greatest number of corruption scandals. 2012 is the year with the most scandals, and we are not even halfway through this year. Going further down the list, the number of scandals decreases significantly. Each year has fewer scandals than the year before, and some years there are no scandals at all.

We may naturally infer that corruption is getting worse, and than we are more corrupt today than we have ever been. Most of us would probably agree that today we are more likely to hear of a corruption scandal than we were 10 years ago. Again, this would lead to the conclusion that corruption is getting worse.

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There is another explanation. Perhaps corruption has not really changed over time. Even though we hear of more scandals today, it is quite likely that there was as much corruption 10 and 20 years ago. The only difference between now and then is that now we are hearing about it; back then we did not hear about it.

Rather than concluding that corruption has gotten worse, it is as likely that disclosure has gotten better. Today, corruption scandals are more likely to be found out and reported on, whereas previously we would not hear about it. The awareness in the media and society of corruption today is greater than in prior years.

The first step to fixing any problem is to admit that you have one. Perhaps the reason that we have not been able to fix corruption is that we were never as aware of it. Today, we are more aware of this than ever before. As scandal after scandal emerges, we get more and more angry about the situation, and the more we want to do something about it.

We need not view the increasing number of corruption scandals today as a sign that we are more corrupt than ever. It is more likely that as a nation, we were as corrupt 20 years ago as we are today. The difference is that today we are more aware of this. Now that we admit we have a problem, we should take steps to fix it. And hopefully that list of corruption scandals will start to decrease in future years.

Technical Analysis

In last week's article, we introduced the subject of technical analysis. This week, we'll continue our discussion and talk about one of the most useful indicators in technical analysis: the moving average.

Moving averages are a way to measure the trend of a particular market. The 20 day moving average is the average price over the last 20 days, the 100 day moving average is the average price over the last 100 days, and so on. If we plot the moving average on a chart, we can get an idea if the market's overall trend is up or down.

For example, if we plot a 50 day moving average on the Nifty index as of today, it is downward sloping, and tells us that the market is in a downtrend. We can create many trading strategies using different moving averages to help us determine the market's trend, and the direction we should trade in. Next week, we'll talk about a moving average trading strategy; and show you how to apply it for yourself.

is a financial analyst and columnist. He actively trades his own and others' funds, investing primarily in currency, commodity, and stock index derivative products. Prior to this, he worked at Deutsche Bank as an analyst in the FX derivatives team. He is a graduate of the London School of Economics. Asad is a keen observer of macroeconomic trends and their effects on global financial markets. He is deeply passionate about educating investors, and encouraging individuals to take part in and profit from financial markets. To put it colloquially, he wishes to take Wall Street products and turn them into Main Street profits!

The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

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6 Responses to "Are we More Corrupt than Ever?"

Capt RHL Maini

May 28, 2012

Corruption is nothing but greed which is special to mankind and not to the animal kingdom of which we are a part,we are still evolving hopefully we will rid ourselves of this mental disease in time to come.



May 28, 2012

Unless we bring in 'Self Discipline', this trend will continue for ever. Because human tendency is that if one person makes a mistake there are others to follow behind.


PR Gadigi

May 27, 2012

Though it is true that greater transparency now is revealing greater percentage of scams now than before, it is also that awareness of more and more number of scams is emboldening the politicians and bureaucrats to indulge in scams more and more shamelessly than before. But this initial phase of increase in scams due to transparency is inevitable before the declining trend starts, because these revelations of more and more scams will result into greater and greater transparency and sensible statutory actions.


R V Iyengar

May 27, 2012

The problem here is that the judiciary can be subverted by the moneyed.
Back in USA when Watergate scandal erupted, Nixon was impeached, though he was the president.
Show me one such exemplary punishment given to the corrupt here in India.
Generally the corrupt get away by inducements given to the powers that be.
The situation is so bad that the corrupt know that they that they have nothing to fear about. Hence the corrupt go about their business with impunity.


sunilkumar tejwani

May 27, 2012

moving average is a lagging indicator. By the time a moving average turns it is already late to enter or exit a stock. By far it only defines a trend in a particular stock or commodity. Using a single technical indicator for trading is not a right strategy to trade.


Suhrud Patel

May 27, 2012

The congress rule of about 50 years after independence, has ruined india morally, economically, and mentally.

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