Tuesday, July 29, 2008

CRR & Repo-rate actions of RBI

Dr. Y.V.Reddy announced the Credit Policy, and boy did the markets react or what? 550 points shaved off, and Udayan Mukherjee, the ever-optimistic bull, sounded gloomy for the first time I must add, in the years that I've followed him.

The last thng India needed was a tighter environment for equities, and th RBI with its' CPR actions has done just that. Interestingly Dr. Reddy outlined the following three reasons for Inflation:
1. Supply-side shortages - Fiscal policy issue.
2. Demand-side shortages - Monetary policy issue
3. "High-availability" of credit - Monetary policy issue

What he did not mention is the weighttages or the percentage contributions to Inflation of the above. Mr. FM has already clamped down on futures market in most food-grains like rice, oil etc. Besides the export of most of the "inflationary" commodities is already either banned completely or is curbed substantially.

The demand-side is where the action lies. By artificially inducing an environment to spend less, by making consumers pay much more (opportunity costs) for items is depriving the nation of consumerism. Why not simply remove the subsidies on farming and let the market then pay for the same? Inflation is a right-ful concern, but so are the basic needs of this generation!

Lastly, the diversion of funds from the sytem into the bank safe would mean the same, everyone has to shell out much more just so that poor sections can afford commodities that are having an intrinsic high value. That India is turning out to b a clamp for people with aspirations is very clear from the current actions of the RBI. This country is for labourers and black-money-proponents. Any other section is just meant for sucking value out of, to feed the classes above.

Highly disappointing day for the Indian Growth Story.

Saturday, July 26, 2008

Remembering Ayrton Senna

The year was possibly late 80 or early 90, a time when India had not woken up to satellite television, and the world was still dark for an average Indian. The only window to sports outside were glossy sports magazines, and boy they left impressions.

One such magazine landed with me, and I was introduced to the phenomenon of racing called "Ayrton Senna". A wonderful story about a man, his machine and his sheer skills to rule speed. An ultimate boy wonder, a legend, and Ayrton Senna was at its' very pinnacle. The fascination grew to fanaticism when Ayrton Senna started appearing live on television sets and life seemed good when races captured the imagination of both the mind and heart.

The move to Williams was filled with excitement of witnessing history fortnight-after-fortnight. Senna's' wheels didn't turn to compete, they had only one goal, to win, and win with a margin. It appeared sometimes, he raced not with mortal racers but something far more than that. An era was unfolding.

Then the fateful day, the light suddenly gives way to darkness. I had never shed tears out of sheer grief till that day. It felt like something so dear to you and someone you took for granted has been so mercilessly taken away, that you are left hopeless.

Till date, I have never been able to accept any F1 driver as the champion, as the real champion lays in peace and the second-best continue to drive.

Rest in peace O lord.

Two cities under attack, will India reply?

This is serious!
Lets' vow not to forget the last two days. This no reality show that we are entertained with, nor are the victims and their wounds that are being aired live meant for TRPs. This is for real, if India was ever reeling under a need for definitive long-lasting action, its' now. For all the words that will be poured on this issue, I am shamefully adding mine, but in my case, I've an action plan.

1. Spend one hour daily surfing the internet for terrorist sites and newsboards. There is no doubt those behind the blasts are using the WWW for coordination. A billion eyes can surely catch them in the act.

2. Serious censorship is required on people like Mayawati, who try to communalize things like the Nuclear Deal! Senseless acts are causing India grave harm.
3. In-tolerance exhibited by Gujarat needs toning down, maybe its' time India learns its' religion management well.

4. Bring in watch-dogs for religious schools - dharmashalas, madrasas, convents et al. There needs to be a strong move to either ban them completely, or to bring them under tight scrutiny. Its' mindless to allow Education to be mixed with religion, especially charities.

5. Media should simply start ignoring these events. The only thing sought by the perpetrators is publicity, panic and fear. The media is giving them exactly these on the platter.

6. Restrain politicians from linking these events to politics. It started within an hour, with Mr. Advani asking for bringing back POTA. No act has ever been misused than POTA. it deserves to be abolished, and Mr. Advani should do some explaining what actions his' party's state-govts took when the intelligence about attacks was given to them.

7. Forget #6. That's impossible, I think the people of this country have to take upon themselves to rid the country of this menace.

8. Trace IPs, Ball-bearing sales, gelatin sales, cycle sales. Every citizen should note who in his neighbourhood has which vehicle, and who comes back without his vehicle after blasts. The nation needs to take responsibility.

9. If there are ghettos where the perpetrators live, then the entire ghetto is a culprit. All neighbours should be charged with crimes against humanity, and atleast lose their dignity, if not serve term or fine.

10. Lets' spread the word about the beautiful country, society, community we are all part of, lets' make hatred an endangered species.

Wednesday, July 23, 2008

Trust Vote: Thoughts

1. Bihar is blessed with some of the best politicians and brains within this country.
2. Crowning of the Congress GenNext is inevitable...
3. Congress successfully applied the time-tested methodology of "Use a thorn to remove a thorn", hell if it took money to bring brain-dead folks to toe the govt line, so be it. If MPs were indeed given money, it would represent the best investment UPA ever did.
4. Karated - A new phrase meaning, "to fall flat on your face on a rock-hard surface, while trying to maximize your ill-gotten fame". Undue lobbying almost always leaves you Karated.
5. Only P. Chidambaram has an organic human brain amongst all the politicians, remainder are just brain donation beneficiaries.
6. Do not surf using Linux, as that might corrupt your floor finish. No its' not absurb, atleast not to Mayawati, and her twistd logic.

Steal @ Croma, Malad

I saw one of the best deals in town on offer at Croma. A 32-inch Sony Bravia "V" series going for 39990. Yes, you heard it right, this is one of the best televisions in town and is going at a 15-20 % discount because Sony has launched a new line.

Go for it, the TV I've mentioned is technically superior to the LGs and Samsungs of the world.

Friday, July 18, 2008

That's the way the cookie crumbles

Inflation @ 12%
IIP @ < 8% (!!!)
Crude @ $130 (Riding down from $150)
Sensex @ 13K
Nifty @ 3850

What a story it has been in the last 35-40 days. Its' been all the way down south for all the bulls, their horns and their hoofs. Its' a no-hold-barred contest to hit rock bottom.

When even amateur economy watchers such as me can predict an imminent fall such as the one above, it becomes amply clear that bubbles and media-hype are true realities in todays day and age. Why even Idli-Dosa-Sambaram was tom-tomming his "de-coupling" theory, and one bull-rally (a hedge agasint the falling $ really) in crude & other commodities, and voila he forgets how "de-coupling" is even spelt.

What a dream team we had...but I guess they took the dream part too seriously, they kept dreaming while the Indian boat sailed through calm waters and into a torrential storm in the midst of no-where.

Good Luck in Elections!!!