If a few weeks ago, you told a true blue capitalist that the US government would be actually buying a private US company, or that one of the bulwarks of America Inc. would be going to the US government with a begging bowl in hand, he would tell you in no uncertain terms that you needed psychiatric treatment. Yet, believe it or not, both the scenarios are a reality today. To say that this has sent shockwaves across the globe would be an understatement. It also looks like that this is not the end of it and more turmoil is in store.

But how did this come to pass? While it would take a roomful of analysts months to work out an explanation, one reason looks obvious - the inherent nature of the 'anything goes' brand of capitalism which the US practises and follows. The basic premise of the 'buy now, pay later' system is that everything will remain stable or improve. It does not consider the flip side - that things may go down. Nature's movements are generally cyclical and it would be wise to keep that in mind.

While various companies, institutions and even governments all over the world will face the fallout of this, there is a lesson in it for all of us. We need to inculcate a sense of financial discipline and avoid the pitfalls of 'living on credit'. Many a time we are tempted to buy something (which we probably don't need in the first place), because it is available on 'easy credit' - but that's a misnomer, there is no such thing as easy credit.

It would also be wise to avoid buying things just to 'keep up with the joneses'. While its easy to get carried away in the flow of materialism and the thrill of 'acquiring' new objects, it would be wise to remember that materialism, like fire, is a good servant but a bad master.

This is not to say that we should all become monks and start living in a cave, but we do need to keep in mind that there is a difference between genuine needs and mindless consumerism.