Economy subscriptions thoughts

Hedging Wealth

Hedging funds have actually hedged wealth.

Galleon has come to the forefront as  a fraudulent company,

How many similar funds go unscathed?

How many influential persons have escaped attention, because of their  rapport with the governing politicians.?

Such kind of Galleon’s exposition is possible in U.S.

But in India and other developing countries frauds multiply, like mosquitoes breed in damp climate.

The regulatory forum is itself corrupt.

The insider trading is an old trick followed by the so-called tycoons.

They make money, pay the brokers heavily, and revel in high living and posh external manifestations.

It is these top placed business men, who come out with philanthropic deals, funding this , adopting that.

India , is known for nurturing the nourished, caring the most cared, and pampering the existing splendour.

The Indian way of freebies, is spoiling the already spoilt  poor.

The exact process of making them independent financially, physically and in relation to mental stability is absolutely floundered by the  government.

Today they give a colour T.V.

Tomorrow they provide a Gas cylinder for cooking.

Day after they extend health care.

Yesterday they allowed  free electricity.

Provision is distributed. The usage is not scrutinised.

The free bies  reward the needy.

They also shell out handsome kick backs to the intermediaries and politicians.The administration settles in for a brand which sends out high  pay off, in the manner of commission.The brokerage is proportioned according to the scale of position.

As the government is busy scheduling all these resolutions, a far serious regulation is overseen.

The over sightedness in  containing the loopholes drives a big hole in the transactions.

 In and Out the hedge fund managers, with their high-profile, and excess money, bag purchases, trap the bureaucrats.

The out come of such irrational, wicked directions, is a collection of materials in a big shopping bag.

This monetary accrual ,most times  are so overwhelming, that they bulge and tear the container in which they are stored.

The truth unobtrusively pops out.

It is again the people,who  are cheated. They unwittingly relish on  a few thousand free  bies while their co habitants glorify in millions and billions.

Well , that is a way o life.

The world survives in cheat , slander, and stealing

.The hedge fund  back drops are exhibits of great theft.


subscriptions thoughts

Infosys Story.

Nandan Nilekani  quit his job and became the Chairperson of Unique Identification Authority Of India on July /9/2009.

It was a surprising decision.

Last week Narayanamurthy sold .13% of his stake for 143 crores.

Yesterday , Sudha Murthy,disposed 2%  of the shares for 430 crores.

In a week, Akshata will  shell out her holdings.

A few days from thereafter Rohan will dispose his equity.

Off, the Muthy’s will set afloat in a Catamaran., as they make hay when  the sun shines



Economy subscriptions thoughts

Raveendran Recuses.

A dramatic turn has happened today in the Supreme court of India ,when Raveendran , Judge , recused himself from the hearing of  Ambani dispute , citing a personal conflict of interest.

His daughter is employed in a firm that is a consultant to Reliance.The three member bench was constituted a  few months back. At the start of the case last month, Raveendran had disclosed that he had equal amount of shares in Reliance Industries and Reliance Natural.The lawyers of the two parties  raised no objection yo it.

When the nation and the investors are keenly awaiting the wrap up, this deviation seems to be a doubtful   extension.The mild excuse by the judge at the stream of hearing does not have a credible  breakthrough,

The withdrawal is an apparent ploy to prolong the case.  In a rare gesture,the government has put  its foot firmly that it is the owner of the  gas.Therein lies the catch.

 The clever brothers, with their cleverer counsels, will argue their case before the cleverest judges of the Supreme court. The dullest of the lot the investor, the duller of the crew the financial institutions and the dull of the entirety the nation, will watch the melodrama for years, such that of the telecasts of Ramayana and Mahabharata.

What a twist in the tail!! 


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 .

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?


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.

Economy thoughts

Heavy Luggage.

The executives of top notch companies are entitled to excessive pay and generous freebies.. The economy is bleeding . The recession is over taking normalcy. But the top brass go high in private jets to the capital to get alms for their sustenance.

The begging bowl and the jet  show an ironical depiction, a satirical subtlety, and a deranged euphoria.The retrograding economy compels an austerity. The precedent should emanate from the top officer. Then , an ideal, subjugated tempo would prevail over the mid level and junior cadres.A voluntary surrender of a percentage of salary and politely avoiding perquisites by the Chairman and Chief executives  would go a long way in promoting healthy  salubirious condescension to the company which supports them. This conduciveness that looks up in the small nucleus will fetch a powerful acrimony , by alleviating the otherwise obscene industrial perspective.

To forego a little  benefit ,we need a lot of determination ,a full dare out to retrieve the soiled grace, an entire resolution to pull out the economy from the woods. But such a realisation is hard to decipher among the executives. They bargain for even more perquisites, and claim a hike in salary to befit the strain they undergo in conducting the business. If a willing submission is difficult , then the government should appoint regulators to monitor the “luggage”,that is disbursed,and designate inspection to deduce the bonus ,free air tickets, holiday packages and other allowances that are recorded, and  compensations that are not entered.

Austere ,sober , serene movements will certainly push in a quick recovery and germinate a soft blend of prosperity and magnificence. 

Economy thoughts

Indian Bureaucracy-A Tedium

Laksmi Mittal , Chairman ArcelorMIttal , has informed that his company ,is close to pulling out of a$20 billion plan to build two steel plants in India, due to dificulties in buying land.The farmers are reluctant to sell the land ,identified in Orissa and Jharkhand. There are also other procedural delays ,that hamper the setting up of industries,which make industrialists to shy away .

The Tatas,had to undergo similar hardships in Bengal. They ,then shifted to Gujarat, a more friendly region . The political buoyancy ,the Chief Minister, urged the Tatas to put up their plant  in Bengal. The Tatas identified an appropriate land area, started their preliminary work, when Mamta , protested against the proposition . There was a big agitation, shooting,, fasting and clashes, that made the Tatas, to withdraw. Bengal’s loss was Gujarat’s gain. The government ,should have worked on the plans, called for a meeting of the farmers, discussed with the local politicians, and should have arrived on a suitable compensation. All these would have taken place, but in a haphazard manner, or in a hush hush programme.So there was loss of time, work and cost.

The Arcelor Mittal project is also progressing towards similar destiny. Orissa and Jharkhand are industrially backward. The Steel plants will ensue a rapid growth to the region,by bringing in prosperity. If the farmers refute to part with their lands, alternatives should be thought off, instead of allowing such mega projects to slip . The state governments should keep this in mind and sort out the problem, that befits the industry requirement and the farmer’s compensation.

Economy subscriptions thoughts

Oil Palm Cess Plus Tax on Income.

The Malaysian Palm Oil Board levied a cess on oil palm plantations, irrespective of their size, small , medium, or big. The estate owners had to subscribe to the terms of the government. The administration levied RM 2 on every increase of 100 Rm fro CPO.In 2007 and 2008, the prices stretched high. The cess was duly paid. Subsequently the price of fertiliser rose three fold. As a natural sequence , labour also expected a hike. So everything ended up high.The plantation holder, had to pay cess, had to  pay higher for manure. and his work force had to be satisfied. Finally , he had to pay tax on his income. Thus he is doubly taxed by the government. No rebate was announced by MPOB.

In 2009, the prices sank low. They ranged between 270RM _290Rm. The cess was not enforced. But the other expenses did not come down with the down trend in price. Fertiliser remained as high as possible. No labourer would accept to decrease  his wages ,as the price has fallen. The plantation holder has to face the brunt. The government keeps tight lipped.

This month ,that is in August the prices are looking up. But there is insufficient rains. The seven months had the  estate owners in tight grip. It was more or less a hand to mouth existence. They had to tend their palms. give them proper nourishment and harvest the fruits in spite of increased expenses. Any negligence will have a telling effect, as the fruits will dwindle when not taken proper care.

The Malaysian government must take an initiative by giving certain tax concession to the owners while computing their income. It should also give an incentive to the estate owners when the price drop. Oil Palm is the vital source of revenue to the government.Any impetus and encouragement by way of tax rebate to the owners for the years 2007 and 2008 will be welcomed and bring cheer  amongst them. Anticipating  a discount in tax , as the estate owners experienced double taxation during the period.

subscriptions thoughts

Textile Industry In India-Dead.

Do any of you anticipate the industry to revive?

Do any of you expect the industry to come out of the embers?

Do any of you wish to see the industry flourish, as it had done a few decades back?

If so, then you are not living in 2009. You are not an Indian. You are not a  person acquainted with the textile  industry intricacies. You have not interacted with the bankers. You are not aware of the government policy. You know not how difficult it is to get labour. You are insensible to power cuts. You do not know about the power tariff. You are ignorant of the broker’s raj. You are innocent of the quality of raw materials. You little realise the breakdowns. You  totally feel that it is easy to run the industry, even after going through all these difficulties.

My advise to you, is you can rear an elephant  than run this industry. The elephant’s appetite gets satiated ,once it is fed well, but textiles have a devououring hunger, thet whatever you invest gets decimated in days. Agsain , you have to muster funds, again it disappears. Where will you land, if you go on putting money into a tavern .?

The banker will be behind you.He will file a case in  Debt Recovery Tribunal, where your case will be decreed. You have to run to DRAT. Then to the high court, file a writ petition. Is it necessary?

The raw material supplier will catch you unaware, and take you to his lland , for cheque return case. You will be put behind the bars. Is it necessary?

The Provident Fund will take you to task. They would squeeze you for interest at the rate of 36%. If you fail, they will attach your property.Is it necessary?

Friend do not ever go near Textile industry, you will be ripped of your shirt. incidentally, your shirt is a product of this industry.The industry in India is dead. You have to live and to exist in peace and contentment.