You bring up a good point here.... No system is perfect ok... lets start at that first. It wasn't pure corruption it was manipulation of data. What we see in India is corruption... ministers and govt officials stealing our tax payer money.
Ok, Corruption is not always about "money". How can you say so? That will be quite narrow view of it then. Corruption is something more like "immoral act" conducted by an individual for benefits to himself or his business. So, by manipulating data, these banks benefited huge amount of money and their boards of directors ate that money too. As far as, the acts are done to gain "undue" benefits, it is corruption!
By that logic, almost 90% land scams in India are not corruption then but mere data-records manipulation? Ofcourse, that's corruption too! Because it is corruption of minds we refer to and not just money transactions related corruption. If we bother about later only, then actual corruption figures in India would be only 30% because maximum corruption happens in Government data-records of public property, lands, business licenses. So, there is no corruption then, only data manipulation!
In case of the US meltdown, it was the money of the investors who had willingly invested in the stock market. You might come back with an argument that the govt used tax payer money to bail them out.... but my counter argument will be that they already got the money back with a good interest rate even. (although I didn't support the govt bailout at the first place).
It wasn't tax-payer money actually. USA has a different system. They printed "free paper"(dollars) from printing press. Noone asks any questions. Now, you can call it open corruption, farce or anything but that's how it works.
Do you know that USA is biggest debted nation? Their debt is more than 100% of their GDP and they don't worry about it because US Govt. just asks the Federal reserve to keep printing unlimited dollars and giving loans to Govt. Though, this might sound like an open farce, but this works good for American public because they get "free money" from printing press. That's how it works there. Ofcourse, this causes issues like super-inflation and stupid things but its still beneficial to have unlimited dollars for everyone so they can buy out resources in foreign countries. Recently, a large part of bail-out went into banks and it landed indirectly into corporates, through stock-markets. That's how american corporates grow and never go bankrupt, because when they run out dollars, US Govt. jumps in and pumps in free dollars and says, "Go ahead, buy out more foreign companies". Now, ofcourse, this doesn't mean that these companies don't innovate or make profits on their own. They do! But big equity players who buy/acquire resources abroad, where they get huge $$ resources from? That's where this $1 Trillion bailout jugglery is! <winks>
China plays same trick. Chinese never lost $500 Billion so, where that $500 Billion bail-out went, that China issued?? Now think about it. LOL
So, there is nothing white or black about western system. It has both sides, dirty and ugly. Now, we have to think what system is good for ourselves. Here morality or immorality has no role. Only priority should be, people must get their money back!
Why compare if something happens in another country should happen in ours? US is in a different league, it is a developed nation and everyone enjoys the basic minimum living standards of life. Can we afford to do so?
We compare because both countries are having almost same financial system with few differences. So, if mortgage scams have hit them, it can hit us too, so better prepare for it through better regulation. And, we have taken steps for that after the scams in US. RBI has increased its supervision mechanisms. But that doesn't mean it won't hit us. Can we eliminate human greed from system? Even superpower US can't. How we can? But what we can do is, make sure people get their money back, then no matter which way, just go and print it. But give the money back!!
