Category: turmoil

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Economy thoughts

Sloka Of Buffet.


Fear when others are greedy,

Be greedy when others are in fear.

This Buffet’s successful mantra has  launched him in  prosperity unimaginable.

He is a competent investor. He is a shrewd businessman with a keen insight.

The recession has not harmed him. Instead has made him powerful. When the market was reeling under pressure, he bravely took a move that baffled serious analysts and broking firms.

His subscription to Goldman Sachs  perpetual preferred stock triggered 6% profit to his investment arm Berkshire . A daring astute action has paid  back.

Procrastination and indecisiveness are the two devilish imps that rob growth and credibilty.Buffet , at the age of 80 , is strong in physic and robust in prosperity. His profits would have dwindled by the 2008 recession, but has not eaten up his capital.

Erosion of capital is dangerous to business. A watchful eye and a calculative mind are the prerogative qualities that enable us to our targets. A small mental calculation will show you the way to invest. Buffet feels that if the calculation   lasts more than ten minutes, and make you tiring ,throw it out of your mind. Complications  will not produce expected results.

Let us take the cue from the oracle of investment . Let us programme accordingly .

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Economy subscriptions thoughts

Theory Of Business


Business is run for profit. Investing money on a venture will not lead  to great deals. Monitoring each and every move will give good results often . But too much intervention in the daily chores will relate to dissatisfaction. Holding control over the investment is a delicate job and a difficult exercise.

A theorem of Buffet states buy stocks or the long term.Buy with the intention of getting stake holding of the company.Do not procure stocks for short time gains.

Buffet spells prudence. Weak spots of the company give a neat description of the  financial. Taking the deficit into scrutiny,a clean prospective perception  of the company could be worked out. Leaving a safe margin as a threshold, stocks can be bought. The change to positive or negative will not play a significant role  in the long term.Once satisfied with the performance of the company, additions could be made in gradual process . Over a course of time , a sizeable percentage of stocks, would be purchases . This method of procurement can be termed as “amplified buy out”.With this diligent programme, the company will come under control.

This amplification of purchase, is totally an output of the research by the individual, not an illegal operation of the insider trading information.A genuine pragmatic designation is to be developed.The hypothesis of true business is a safe  play, not harming anyone,not defeating any proposition, not ejecting any portfolio,not destructing any ethics, not defaming any person, not indulging in illicit acquisitions.

An evolution of such theory will take up the business to great heights. 

 

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Economy thoughts

East Asian Community


Well, the craze for west, the love for U.S  are slowly disspiating.Asia is taking the supremo from The United States.

The Asian countries were in the pink of economy, with vast natural resources  in hand. The man power was always a prime asset of this area. The excellent skill in manufacturing industry was  prompting envy . The deft hands, and  the shrewd brains,made a rare combination.Hard work and  with standing spirit made these nations shine in the past.

Lured by the    magnificent wealth, the westerners invaded these countries. They explored possible ways to exploit the hidden treasures. They studied the integral part of the society, which brought to light the warring communities. They found out that there was no unity among the people, and the governance in these countries were weak, and divided. Cashing on these elements, the Dutch, Portuguese, French , and British, entered the lands as traders. gradually ,they created chasm ,and split the communities. This tactics helped them to delve deep into the interiors. The assault was timely. the onslaught ,which was unexpected by the locals,  , led to a  coup. The Kings and  local rulers were overthrown. The traders ultimately became rulers.

The ruling power gave them free licence to loot , to plunder, to levy heavy tax, thus filling up  their exchequer in their homeland. Cash, valuable diamonds, beautiful stones, like rubies, emeralds, pearls ,corals, were shipped to the respective countries , thus demeaning the economy of the Asian nations.

The West grew in prosperity, while the east , home to ancient civilization,  succumbed to paucity.

With the hoard of wealth, the western countries , particularly Britain, drove its colonies into slavery and penury. A large level independence struggle was carried out. After, much blood shed and pain the colonies became free. In the course of their dependence, they lost their spirit and courage. The catastrophic  compulsions  were hard to be dissolved. The natives had to find a way out of these divisive forces.

The east Asian Community , at last,in 2009, has found a way out. A long struggle, and an exonerating  impulsion, have shown them a light to move forward. The Western influence is slowly taking the back bench, The attractive U. S. settlement is waning off. The East Asian Nations, Australia, and New Zealand  have to rebalance their growth to face the new challenge.

They will surely  get back on their feet.

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Economy subscriptions thoughts

Right to Information


An interesting thread which is going around the financials zone is the insider trading. Raj Rajaratnam has amassed wealth through this tip of .

He made $9 million dollars based on Google Inc’s earning expectation in 2007. He traded on the insider tip-off that the revenue would be below the expectation.

The probe in Galleon case is expanding ,as the Federal prosecutors have sent subpoena to a former employee of  SAC capital advisors. It seeks trading records from Richard Grodin, who let SAC in 2004.

The news is bewildering and sends wrong signals across the world of investments.The Right to information act has to be made use of in a forceful manner to get the truth out of the insider information  trading.

A small time investor ,who follows the market, who reads the reports, who testifies on the PE ratio, who  then invests in a particular stock , is deprived of his fortune  by this dubious , daring , hedge fund managers.

Concluding, it is always the innocent and upright who face the music.

Where to find the truth behind this non public information?

How to trace out the fact behind the insider tip of?

 

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Economy subscriptions thoughts

How To become Rich?


How to become rich?

Do not work,

Do not invest,

Do not build,

Do not think,

Riches come to you.

 

How to become rich?

Do cheat,

Do manipulate,

Do illegality,

Do deceive,

Riches will come to you.

 

How to become rich?

Do not earn,

Do print,

Do not toil,

Do deprive,

Riches will come to you.

 

 

How to become rich?

Do squander

Do not  save,

Do plunder,

Do no justice,

Riches will come to you.

 

 

How to become rich?

Do all fraud you can,

Do as much  scandal as you can,

Do  all counterfeiting   you can,

Do as much scheming you can

Riches will rush to you.

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Economy subscriptions thoughts

Insider Trading -India Far Ahead.


Insider Trading ,has attained a star status, as Raj  Rajaratnam, Anil Kumar, and Rajiv Goel, Chiesi, Moffat and Mark Kirtland got arrested in a $ 20000 with four counts of security and eight of securities fraud. 

This trading secret was deciphered in India, as early as 1992.Indian memory is not so weak as to forget the Fair growth financial services, promoted by maverick ex banker Ratnakar, who was also involved in the share market scandal ,which was hosted By Harshad Mehta.

 Rich P.Chidambaramand his wife Nalini invested a fairly large sum in the scam tainted Fairgrowth and became richer instantaneously.When the  irregularity was exposed,  Chidambaram resigned. His submission was accepted by the Prime Minister Narasimha Rao,much to the alacrity of  his brother and the public. This move Of Narasimha Rao, was tacit presumption of  Chidambaram’s culpability  in the scam.

1992 is seventeen years from hence. Indians had overtaken the other world by a decade and a half . Indians always think ahead of their times. They possess an intricate foresight

The  keen insight in tracking loose plugs in business, meticulous meandering  into the loopholes of market, scrupulous foraying  into the shoddy virtues of  commerce,are a resounding peculiarity of most of the successful Indian businessmen.

An ordinary Indian ,who resorts to unsavy methods of business , becomes a millionaire overnight.

A millionaire , who  engrosses  himself in unethical procedures of  commerce, achieves a billionaire status over a day.

The Indian decorum  in business world is nonplussed  

  

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Economy subscriptions thoughts

Internal Eruptions.


The Indian Business school , is one of the best management institution in India. It imparts class education.The institution, is in the limelight for wrong reasons.

Rammohan Rao, its dean ,presided over the fraud botched  Satyam computers., allowing it to buy Mayatas Infra and Mauatas properties. After the  outburst of Satyam dubious deal,he stepped down as dean, but still is associated with the school.

Now Anil  Kumar a top executive in the global consultancy firm McKinsey&co, who  is on the board of IBS,has been arrested for his alleged role in the network of insider trading masterminded by Raj Rajaratnam.

The Indian Business School  is in tight spot.

The Dean and the executive member are associates of fraudulent entrepreneurs..

The school  with a big banner  should  inspire entrepreneurship. But the two members on the governing council instil  a rare kind of interest, that of earning in the wrong way.They behest a bad precedence.They have earned  illegal ,illicit wealth. Their reputation is a sludge. 

Loopholes in trading, exceptions in rules, derogatory tendencies in  provisions pave a negative direction to  business.
The prestigious school is in a delicate, piquant situation.

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Economy subscriptions thoughts

Raj Rajaratnam Edged Out.


The billionaire hedge fund  manager Raj Rajaratnam was arrested on insider trading charges.He made money by investing in stocks with highest earnings. It sounds good. His prudence in buying stocks was not a result of analysis, but by the tip off he received from insiders. There lies the catch.

He got information of Polycon earning announcements,Google earning estimates, and Hilton take over.He traded on behalf of his company Galleon with this clue .

Goel provided news about Intel  quarterly earnings.As payback for Goel’s tip , Rajaratnam  or his nominated entity ,executed trades in Goel’s personal brokerage account in respect to Hilton and People support ,thus depositing 250,000 $in Goel’s account. This is an illegal profit  for Goel. 

Rajaratnam traded with insider information leaked out by Kumar on the transactions of two Abu Dhabi bases sovereign entities.Chiesi  passed on tips about Akamai Technologies to Raj , who acted swiftly on behalf of Galleon . Robert Moffat circulated inside information about Sun Microsystems, which was to be bought by IBM.The input gave Chiesi $1 million profit.

How many ways are there to earn money?

Earning by just means  is a little depressing , when the revenue generated by illicit methods is so lucrative. This insider information has been in circulation for a long time, not only in U.S, but also in Other countries.  The trendy  moves of the company  is utilised to make money . The chief executives indulge in such process to make loads of money.

Greed is manifested in so many forms. This manoeuvre of hedge funding is the latest addition to the family Of greed.

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Economy subscriptions thoughts

Economy Muted, Employment Routed


The worldwide recession is drawing to a close. It has been halted by stimulus package. The Asian countries have taken the supremacy  over economy. China’s growth is amazing. India is carefully treading China’s curve. The  dollar is losing its importance.A new currency  will soon make an advent . The baptization of this currency ,which is going to be a mixture of euro, yen , rupee ,yuan and lira , will be performed  shortly.

The world has not been as successful with employment as it had been with Economy. Job cuts still exist. U.S was the most attractive destination  for Asians with respect to employment.. But , in the course of this economic down trend , a drastic lay off and an emergent disposal of jobs were enforced.

The resilient stayed back . But ,the less courageous returned home. The situation  is still deplorable. There were incidents of suicide. The huge salary ,which placed the migrants in a plush alibi, has been  withdrawn. They ,who had borrowed heavily , to purchase  houses, cars , and other amenities could not make over their loans. They found themselves in enormous debts. With no revenue the liabilities looked so gigantic., and got magnified. This eccentricity drove many , not only migrants, but also natives to end their life.

The economy has been reformed. The employment is still in a pathetic wreck.The determined ,who stuck to the job , in spite of low salary , are in gripping fear. What is going to happen ? is the query boggling their mind. But , the sensitive ones, unable to tolerate the shoddy pay packs, have come out of the cruise. They are mopping in the dark, pining for the hay days, suffering for no fault of theirs.  A serious consideration  has to be expedited to resolve the burning issue. If not looked in time, there will be an outbreak of epidemic financial  disaster in the  guise of  job loses.

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Economy subscriptions thoughts

Anil Ambani Perspires.


Anil  Ambani ,after a pilgrimage to kedarnath and Badrinath ,wants to reconcile with his brother Mukesh. A message has been sent and the elder Ambani ,has welcomed it. The four year tussle will end . Anil wants  this to happen ,as this would be a fitting gift to the mother Kokila Ben ,on her seventy-fifth birthday.The sons will make the mother happy with the expensive presentation , at the expense of India.

The stock markets saw a prospective rally,because of this peace talks. A family in fight works on India’s economy. The Reliance group  is the biggest business group in India. The contribution of the public to the growth of the companies are excessive . In fact ,the promoters holds less percentage of share than the public.

If a country has to move in the right perspective, then the control of economy by Ambanis should be minimised . The government should not succumb to the gimmicks of the brothers. The Finance Ministry should  be firm in dealing with their claims ,regarding Reliance Petroleum.

Will Manmohan Singh act?