Who is responsible for financial stress?

NITI Aayog Vice-Chairman Rajiv Kumar has termed the ongoing stress in financial sector as "unprecedented in the last 70 years" while calling for extraordinary steps to tackle the economic slowdown. Citing the situation of liquidity crisis in the financial sector and weak private investments, he said the government needs to take "out of the ordinary" steps to revive growth. There is no trust in the market, as financial institutions are only indulging in selected lending while denying credit to a large pool of business across sectors, he said.

Senior Congress leader Kapil Sibal in his tweet took a swipe at the government, saying the "economy is in ICU" and the Modi dispensation has issued a "look out notice" for all those defending civil liberties. The events of the last few weeks have shown that both, the economy and the cause of liberty, need a stimulus package," said Sibal.

On the other hand, K. Subramaniam, Chief Economic Advisor(CEA) has certain resevations agaist stimulus package and called it a moral hazards. Meanwhile some experts says Public Sector Banks are responsible for the present slowdow and managers failed to rein in these financial institutions.