Category: turmoil

Economy thoughts

Citi group for sale.

What a tremendous impasse!

It is the most unexpected event of the year 2008.

Citi a gigantic ,imperial , and a dynamic bank is up for sale.

The stock price has fallen by more than50%.

Another instance of ostentataion succumbing to pressure.

We have to go back to the basics.

Banks, are primarily lending institutions,not supermarkets displaying snobbish products.

Their business is funding, collecting interest, and mobilising deposits.

Highly paid , well educated, high profile executives have driven economy to its depths.

A justified, modest ,graceful evenly poised ,customer friendly, investor reliant attribute is the call of the hour.

Tags Economy

Integrating Principles

David Weidner’s article ,is a well knit proposition.

Iconic bank brands that once infused courage , now instill fear,says Weidner.

An exact interpretation of the meltdown.

Ostentation, paraphernalia of exhibits,lavish display of products, a highly official environment, an unaccessible haughty bureaucracy, pretensions, and a show off of all work ,all busy, discarding the customers, discriminating the constituents according to their wealth has led to the debacle.

Citi bank,Lehman Bros,Merrill Lynch, and Wall Street Mutual ,have succumbed to such retentions.

Modesty, transparency,and focused approach have glorified G.P. Morgan, little known Schwab and Black Rock.

These banks are cautious in lending, have a clean balance sheet,and simple business models.

Slow and Steady wins the race ,is a common ,again a simple Maxim.

Maxims have not been simply issued. They are the outcome of experiences,engagements and effective interludes.

The one to one approach, personal contact,and cheerful dialogue are the fundamental requirements for any endeavour to prosper, to withstand the test of times.

A grocer’s shop. ,round the corner, has a personal touch, a human consideration ,professes simplicity ,includes pleasant reciprocals, which are sordidly missing in a huge mall,or super markets.

The gigantic scenario inspire awe, infuse fear, and initiates a solemn withdrawal.

The grocer ,is a human before us, knows what we need, gives the best quality items,tells us to buy more as he foresees a hike, refrains us from purchasing a particular commodity as it is a secondary degree.and finally exchanges enquiries of our family and well being.

We bid adieu ,with a smile and a satisfaction.

The cue or rather a clue for a business to thrive, to prosper ,is “Satisfaction”

“Satisfy your customer “should be the motto of every business.

Be it a inspirational Bank like Citi, a big automaker like GE, a super dis player like Wall Mart ,a huge industrial house like Arcelor-Mittal , the customer is important

We have to learn this extraordinary lesson from the grocer.

Management education in top universities becomes complete, wholesome by integrating simple personal

customer satisfactory approach.

Tags Business

Economy subscriptions thoughts

Cut Prices

Mr.Palaniappan Chidambaram, the flamboyant Indian Finance Minister ,has advised the various sections of the industries ,to cut prices, to tide over the global financial crisis.

Well it is as good as saying , if your shoe pinches, cut your foot.

Right , going by his clarion call, cutting prices , increases demand,and the inventories and finished goods would not be piled up.

Exactly. to manufacture a product we require ,raw material, power, labour,and have to account for overhead expenses, wear and tear of machinery .

The cost of product is fixed taking into account the cost of raw materials ,conversion expense and profit margin.

Say ,if the selling price of a product is Rs 100. there will be a profit of 5-7%.

Is it possible to run an industry without profit?

If you sell the same product of RS 100, at Rs 5, then the demand will shoot up.

20 items would have been cleared.

Mr.Palaniappan Chidambaram is stirring the hornet’s nest.

The Harvard educated seasoned politician is mocking trade and business.He is masquerading the disproportionate,unseemly factual and treating the industry with scorn and contempt.

Cutting down prices ,will have reflex and retrograde effect.

It is not an alternative to retrenchment, lay offs.but an ambush to the entrepreneur pushing him into a deep muddle,into a debt pool and a sneaky pandemonium.

He has volunteered to examine reduction in excise duty rates.

It is easy to preach than to practise.

His statement is similar to the Queen Marie Antoinette of France legendary excesses “if not bread ,eat cakes.”

He is advocating from a glass house, talking from a golden castle, sermonising from a diamond studded pedestal.

Tags Political Opinion

Economy subscriptions

Convalescence

Gradual recovery of health and strength after illness, surgery and injury is called convalescence.

World economy is half dead, severely dishevelled,and badly bruised.

The Bail out plan of the U.S, is a wrong prescription.

Stuffing the suffocated ,dying patient, with high protein supplements, fibre rich food, and saturated fat ,

is alarming and ridiculous.

The poor patient will be stifled by all these indulgences and will breathe out in haste and precipitation.

As the economy is thoroughly out of shape, swiftly detiorrating, the nourishiment should be done with utmost care and attention.

A sinking man will look up in fits and starts, similarly the economy has its ups and downs,its bright moments and its dull averages.

Getting into the messy plethora, we can decipher the worst ,disdainful nomenclature.

Adopting the agricultural practices of yore, we have to resort to certain refrains.

The business , which have defaulted on will ,and collapsed out of perfidy and deceit ,should be allowed to rot. No bail out is necessary for such outlets.

We have to identify highly competitive companies, with smart management,with skilled handling. with deep foresight, and with stiff withstanding stoicism.

We have to make them leaders of the compendium, assure them of all possible aid. and hand over the reins of economy.

The regulations should be following them in close quarters.

Any propensity to err should be checked .

The renaissance will be slow, as we have to detest from administering any boosters, or Short spanned doctrines.

As the ancient farmer, chose the best seedling, tended his farm like a child, we have to select the best set of minds, and caress them as a babe.

We cannot expect results at once.

The farmer of yore ,patiently waited for the bloom , for the ripeness, to harvest.

He reaped a wholesome reward.

Economy requires time to regain its original vigour and lustre.

Mild medications and smothering assuage will put back the economy back in its pedestal.

Tags Economy

Economy

The fall and rise.

The era of capitalism is drawing to a close.

Regulations are switched on to prevent further economic meltdown

A few decades back banks were modest.

They were a wee better than private lending companies.

Every advance was accomplished after deep analysis.

Credit was sanctioned after studying the worthiness of the borrower.

Equal or a little less valued collateral were taken as additional security.

The shareholder sand the depositors were less worried about their investments.

The banks took utmost care.

Now the banks wear a flashy attire.

They have a high profile.

They have a show of supermarkets.

Credit cards, debit cards, of different category have pushed in.

The drab soberity gave way to lively glamour.

The externals overswept the internals.

The flimsy terms overwhelmed the fine techniques.

Stage overtook home.

In the mileu the value was drowned.

Credibility was interred into dust.

Unmindful lending led to sub prime crisis.

The executives lost their keel.

Bank after bank collapsed like a pack of cards.

Now Paulson is wailing from wilderness.

He is crying hoarse.

He is urging quick approval of rescue plans

Bush has sanctioned 700 billion$ to bail out the nation.

As an ultimatum,

The taxpayer is ripped off his least belongings.

It is the time to adopt stringent measures.

The high fliers are to be tracked down.

“Masters Of universe”will have to be content with two cars ,one home and no private jets-Irwin Kellner.

Americans have to realise the naked truth and reconcile to reality.

The rise of socialism is peeping in.

Tags Economy .bitter, lessons

Economy

Flow of terms

The U.S. economy is biting the dust.

It is also pulling the global finance with it.

There is a merry go round like pandemonium

There is also a stream of epithets pronounced

There is an unchecked tide of words addressed.

Making a tabulation of these terms, I compile

bailing out,

rescue plan,

take over,

sanction of,

reaching out,

extending a hand,

buying illiquid assets,

securing good assets.

The list goes on,

iImust have missed a many in the process.

I must have mixed a few in the milieu

They send a strain of gaiety.

They also signal sadness,.

A natural phenomenon is brought to light.

Excess happiness brings tears

Extravagant sorrow provokes laughter.

Tags Politics

Economy

Global Whirlpool.

The last decade saw a different pattern of buisness.

It was termed as Globalisation.

There was a huge frenzy .

There was a massive upturn.

Back offices,. Business process outsourcing centres were opened in India and other south eastern countries.

The economy of these nations shot up.

A new badge of employees status was ascribed.

The outsourcing was done to minimise cost.

The companies did cut their expenses.

The workers were made to work in the nights.enabling the portfolio of response to their western boss.

A dismal process of cutting expenditure.

The pay packets were hefty.

It is very much unknown in this part of the world.

The financial institutions also had an undue exposure

There was a joint venture agreement between majors.

There was a barrage of take overs.

All happened in regularar rhythmic movements.

Cheer and radiance spread everywhere.

All good things should come to an end.

The sub prime crisis in U.S was the first jolt.

The housing crunch, failure of banks, insurance companies added a vehement blow to the rosy economy.

The financial storm battered U.S.

Asian markets, European financials were engulfed by this whirl wind.

Can we call this financial tsuanmi?

Nay ,Tsuanmi is restricted to one particular geographical location.

Tsuanami is less ferocious in this aspect ,than the. economic down troddence.

The most powerful natural detractors are -Fire, water and wind.

This financial diaster is most pronounced

The affliction is fathomless.

The misery is unmeasureable.

The physical perception of tsuanami and the financial downturn may be altered.

The Fury of the ocean is ghastly.- loss of life at once

The anger of the monteary failure is starvation.-loss of life in interruptions.

Invisible errors like job displacement leads to financial crunch ‘ultimately treading towards penury.

. If not ,for this unmindful globalisation, most states would have fared well.

Countries which secured political independence,a half century back,are financially conquered by this unseemly predictions.

once again they have to struggle for liberty- economical freedom.

Let us be what we are. Let us not ape others..

contentment is tranquillity.

Peace of mind brings eternal sublimity.

Tags Business

Economy

Fannie Freddie take over

The Federation has taken over the two mortgage companies.

Fannie and Freddie collapsed a few months ago.

Revamping is going on.

The chief has been sacked.

Nursing an unviable business back to health,is spectacular.

But ,disallowing the company to turn rot ,is prudence.

Stitch in time saves nine.

This is a very popular and pragmatic saying.

Let us prevent mishaps,before they occur.

If the financials of the two companies had been managed well,disaster would not have found its way.

There is lot of cheer in the market. Stocks soar,Upward movement is not only in U.S, but world over.

I sit back.

The top query in my mind is “How is it possible?”

The relevance of plausibility is irrelevant.

The destiny of the big companies is important.

They involve transactions in bulk and in volume.

They embrace a multitude of share holders.

They anchor on the nation’s credibility.

These answers refuse to pacify my agitated mind.

The plight of the tax payer irks me.

I am pained.

Who will take care of him?

Will the federation ?-definitely no.

Will the treasury ?-certainly not..

There is no recourse for this poor man .

It is he ,who has filled the treasury’s coffers with his taxable income.

Alas he turns a scape goat in the hands of top executives.

Power corrupts man.

Money dissolves him.

I see agony, more agony everywhere…

Tags pain

Economy

Wondreful mechanism.

Market volataity is unprecedented.

Hot money is playing truant.

Commodities have been pushed up by deploying the bout of fresh currency.

The sudden withdrawal has let oil limp.

We see the stocks rise.

Oil’s retreat is perceived as an answer to the law of supply and demand.

The conception therefore is there is less demand for oil and more production.

India and China are the primary consumers.

We see no fall in their demand.

The economy slowdown in U.S is another vital element that is pulling the prices.,argue the market pundits.

U.S is bleeding.

U.S. economy is in disarray,

The slump in oil price is due to clever scheming and dirty tricks.

This manipulation is the brain child of U.S.

Tags Trick

Economy

A year of credit crisis

The financial system is in disarray

The sub prime mortgage crisis has gone global.

Credit crunch has begun.

8 U.S. banks have failed.

Consumers are in despair.

Assets have depleted.

Assets in the form of home value has gone down,stock portfolio has tumbled.

The balance sheets post negative results.

Wages are stagnant.

Food and energy prices are climbing.

There is pain , more pain all over.

Inflation is pitching high.

To contain inflation paper money is printed.

This is a very unhealthy sign.

An entity like a government body should enter to sort out the crisis.

Wonders cannot be wrought in short span.

Recovery is way ahead.

By 2010 ,the economy will become pretty sound.

Assets in the form of home value going down