Wednesday, August 19, 2015
Saturday, September 7, 2013
A List of Suggestions For Mr Rajan, Governor RBI
I am sure Mr Rajan must have been fed up with the lists of "Do" s and " Don't"s received from various ,( and most of them from very respectable) levels . But such a fear should not and could not prevent me from penning a few issues which I think are relevant. Many issues may not be directly under his scope and command, but I am placing them since they do affect his performance and he certainly has an access to the relevant corridors.
So here we go
1.. We need to play from the front foot and need to be aggressive in ensuring a healthy spread of banking culture particularly among rural and marginalized urban population
2.. Believe it or not, but let us admit that Indian Banks and RBI have done a commendable job in keeping all our Commercial banks afloat. Their a bit conservative attitude has kept us away from the massive typhoons of Derivatives of umpteen levels ( unlike USA )
3.. Co operative Bank segment needs a serious fresh look. The cooperative sector needs massive amendments in the Act itself to keep them away from Political/ unprofessional interventions .
I think this sector, if professionally and carefully monitored, can ensure a widwer spread of banking culture
4.. The Banking sector needs enhanced capital support to keep its spread in affordable limits and to meet the inevitable NPA pressure due to the slow down ( I assume NPA created due to corrupt practices will be severly dealt with)
5.. The Agro financing and MSME financing is so crucial , but for obvious reasons of weaknesses of the sectors, the banks have taken a very lukewarm interest and provide more lip services rather than actual finance. Actions and some initiatives need to come from both the sides of the table. Be clear that the ball at this point of time appears to on a No Man's Land .
A few ones can be added, but let me post at least these as a starter !
So here we go
1.. We need to play from the front foot and need to be aggressive in ensuring a healthy spread of banking culture particularly among rural and marginalized urban population
2.. Believe it or not, but let us admit that Indian Banks and RBI have done a commendable job in keeping all our Commercial banks afloat. Their a bit conservative attitude has kept us away from the massive typhoons of Derivatives of umpteen levels ( unlike USA )
3.. Co operative Bank segment needs a serious fresh look. The cooperative sector needs massive amendments in the Act itself to keep them away from Political/ unprofessional interventions .
I think this sector, if professionally and carefully monitored, can ensure a widwer spread of banking culture
4.. The Banking sector needs enhanced capital support to keep its spread in affordable limits and to meet the inevitable NPA pressure due to the slow down ( I assume NPA created due to corrupt practices will be severly dealt with)
5.. The Agro financing and MSME financing is so crucial , but for obvious reasons of weaknesses of the sectors, the banks have taken a very lukewarm interest and provide more lip services rather than actual finance. Actions and some initiatives need to come from both the sides of the table. Be clear that the ball at this point of time appears to on a No Man's Land .
A few ones can be added, but let me post at least these as a starter !
Wednesday, September 4, 2013
The Great Trader !!
The role of Finance Intermediaries, Analysts , Consultants and the Funds Managers is under the public scrutiny ..the author feels .."rightly so !!" We all have lost faith in many of them ( am keeping some exceptions, to prove this statement !!)
There is no doubt that a vast number of investors have lost a huge amount of money during this financial turmoil, which still continues,unabated .
Naturally the blame game has started.
Coming straight to my topic,I feel that the financial intermediaries ought to have alarmed the concerned investors, quite effectively , to the fact that there lies a clear wasted interest or there are clear signals that point towards a steep fall in Re value and stock prices at all levels however , they hesitated probably because they had vested interest to see that the stock prices swell and keep swelling The Incentives , Bonuses, ESOPs etc all drew he tangible benefits from the extra fat that the equity prices gather
As far as $ Re values are concerned, they have proved quite novice and poorly researched all throughout.
.
Similarly , the entire machinery that participated and controlled the money markets and the stock markets, also could not see beyond their own self interests of a short run .
Naturally the blame game has started.
Coming straight to my topic,I feel that the financial intermediaries ought to have alarmed the concerned investors, quite effectively , to the fact that there lies a clear wasted interest or there are clear signals that point towards a steep fall in Re value and stock prices at all levels however , they hesitated probably because they had vested interest to see that the stock prices swell and keep swelling The Incentives , Bonuses, ESOPs etc all drew he tangible benefits from the extra fat that the equity prices gather
As far as $ Re values are concerned, they have proved quite novice and poorly researched all throughout.
.
Similarly , the entire machinery that participated and controlled the money markets and the stock markets, also could not see beyond their own self interests of a short run .
The bail out packages also , if and when announced, interestingly , will put higher tax burden on the common investors .
The entire system needs to be revamped. There can not be a reliable cure coming from the quarters which itself is manned by the experts who themselves are the cause of the problem . The real great traitors are those who played a "YES Sir "approach since they were more than happy receiving their swelling pay packets!!
Any rejoinders?/ !! Please .
The entire system needs to be revamped. There can not be a reliable cure coming from the quarters which itself is manned by the experts who themselves are the cause of the problem . The real great traitors are those who played a "YES Sir "approach since they were more than happy receiving their swelling pay packets!!
Any rejoinders?/ !! Please .
Tuesday, September 3, 2013
The Tumbling Rupee
The Tumbling Rupee
A lot is being said about the way the Rupee is falling almost every day. The Finance Ministry , the RBI and most of the Economists appear quite clueless.
Various reasons are being rolled out from various corners .Starting from...politicians are planning to bring back their stacked Foreign Currencies, the US market is looking up , so the FIIs and other PE investors are transferring their investments from India to US or Euro zone ,the trade deficits are mounting , and so on.But the single biggest factor, to my mind is ...the fast melt down in the Confidence level in the Indian Economy and particularly in the ability of our Governing system, which is muddled with corruption ( which is now spreading like a virus in almost all walks of life) For various international agencies and investors, India is a Gone case, the India is no more shining and it is like a fast fading light, which sparkled for a few years and the economy will soon find its comfort zone in the Elephant rate of growth( 2 to 3 % )
There will however be a boom in earnings for the exports, but that will not last long and their competitive advantage will be wiped out by local inflation and parallel reduction in currency values of competing export countries.
The local industry, which is so much used to depend upon imports , along with the consumers of Imported items, will find the going tough. But the worst hit will be the Corporates who have merrily borrowed in Foreign currencies.
I will not be surprised if a good number of our industrial units fall into the lap of overseas strategic investors .
So what is the solution? .... For that let me think and say something in my next blog !!
Thursday, August 18, 2011
Saturday, February 13, 2010
Wednesday, April 22, 2009
The Great Trader !!
The role of Finance Intermediaries, Analysts , Consultants and the Funds Managers is under the public scrutiny ..the author feels .."rightly so !!"
There is no doubt that a vast number of investors have lost a huge amount of money during this financial turmoil, which still continues,unabatedly .
Naturally the blame game has started.
Coming straight to my topic, i feel that the financial intermediaries ought to have alarmed the concerned investors, quite effectively , to the fact that there lies a clear wasted interest , at all levels , to see that the stock prices swell and keep swelling .
The Incentives , Bonuses, ESOPs etc all drew he tangible benefits from the extra fat that the equity prices gather .
Similarly , the entire machinery that participated and controlled the money markets and the stock markets, also could not see beyond their own elf interests of a short run .
The bail out packages also , interestingly , will put higher tax burden on the common investors .
The entire system needs to be revamped. There can not be a reliable cure coming from the quarters which itself is manned by the experts who themselves are the cause of the problem . The real great traders are those who played a "YES Sir "approach since they were more than happy receiving their swelling pay packets!!
Any rejoinders?/ !! Please .
There is no doubt that a vast number of investors have lost a huge amount of money during this financial turmoil, which still continues,unabatedly .
Naturally the blame game has started.
Coming straight to my topic, i feel that the financial intermediaries ought to have alarmed the concerned investors, quite effectively , to the fact that there lies a clear wasted interest , at all levels , to see that the stock prices swell and keep swelling .
The Incentives , Bonuses, ESOPs etc all drew he tangible benefits from the extra fat that the equity prices gather .
Similarly , the entire machinery that participated and controlled the money markets and the stock markets, also could not see beyond their own elf interests of a short run .
The bail out packages also , interestingly , will put higher tax burden on the common investors .
The entire system needs to be revamped. There can not be a reliable cure coming from the quarters which itself is manned by the experts who themselves are the cause of the problem . The real great traders are those who played a "YES Sir "approach since they were more than happy receiving their swelling pay packets!!
Any rejoinders?/ !! Please .
Saturday, March 28, 2009
Got started??
The recent upswing in the stock market has uprising of hopes of a revival! What’s to be done?
I have always been telling that the Indian Economy is well poised for a growth. We need to have a bit of confidence in what we think is required to be done. In the current situation, the world will be looking for less expensive goods and services (look at the international interest that NANO has generated). The only country that can take away a good bit of business opportunity is China.
Now we should understand that China has its own problems and it is a less attractive destination for investors. They can have an edge over us as a supplier, but certainly they will have o be humble when it comes to attracting new investments. I think we should try and attract their entrepreneurs for setting up shop here itself!!
We should not also underestimate the power of local markets. A bit of care and concentration to meet the local demand will also open up a large market.
The real problem lies with the attitude of our consumers and entrepreneurs. Many of them have become unwisely risk averse, thanks to the media sponsored recession!!
I have always been telling that the Indian Economy is well poised for a growth. We need to have a bit of confidence in what we think is required to be done. In the current situation, the world will be looking for less expensive goods and services (look at the international interest that NANO has generated). The only country that can take away a good bit of business opportunity is China.
Now we should understand that China has its own problems and it is a less attractive destination for investors. They can have an edge over us as a supplier, but certainly they will have o be humble when it comes to attracting new investments. I think we should try and attract their entrepreneurs for setting up shop here itself!!
We should not also underestimate the power of local markets. A bit of care and concentration to meet the local demand will also open up a large market.
The real problem lies with the attitude of our consumers and entrepreneurs. Many of them have become unwisely risk averse, thanks to the media sponsored recession!!
Bail out??
The recent boost of US $ 1 Trillion has been accepted well by the Stock markets .But the same faces mixed reactions among the Scholars! Mr. Amal Dhru tries to simplify this already hyped up issue!!
So once again a bail out from the US Govt. for the troubled banks!!
The US Banking sector seems to be in greater troubles than what is perhaps admitted/known to us!!
The recent package, assures the banks that their bad advances will e taken over by some private agencies(of course funded by the treasury), so that the bankers can do and carry out their "business" denovo, without the burden of the past !!
The ultimate loanees of the old advances will be able to get some extra support, low interests, and easy repayments and will hopefully be benefited through the "revival" of the economy in Due Course of time!! So all will end well in Due Course of time!!
To me this sounds like a BIG DREAM of revival. It is indirect flushing in of additional Dollars into the economy, and an action of keeping the banking sector afloat, at any cost. Luring the people not to shy away from borrowing from the banks which are now re fed!! And boosting the banks to keep lending. Since the Big Brother will always bail you out as per this precedent!!
I think time will and it really has come for US to THINK about the causes (unending speculative tendencies and alarming apatite for Profits of the banking sector) and try to put them under some controls. This is an easy way out that they have preferred. It gives some time for the eventual financial disaster that is looming large. The next bail out package may be for the US Treasury itself (take it lightly, please, if you can!)!
But here is an opportunity for the Indian banks to attract genuine investors. The money is safer with our banks and are yielding better returns. Just put this message out loudly enough opportunities does not come more clearly than this. If we miss this chance, even our banks will be swayed by the forces of the already drowning "International Banking Sector".
So once again a bail out from the US Govt. for the troubled banks!!
The US Banking sector seems to be in greater troubles than what is perhaps admitted/known to us!!
The recent package, assures the banks that their bad advances will e taken over by some private agencies(of course funded by the treasury), so that the bankers can do and carry out their "business" denovo, without the burden of the past !!
The ultimate loanees of the old advances will be able to get some extra support, low interests, and easy repayments and will hopefully be benefited through the "revival" of the economy in Due Course of time!! So all will end well in Due Course of time!!
To me this sounds like a BIG DREAM of revival. It is indirect flushing in of additional Dollars into the economy, and an action of keeping the banking sector afloat, at any cost. Luring the people not to shy away from borrowing from the banks which are now re fed!! And boosting the banks to keep lending. Since the Big Brother will always bail you out as per this precedent!!
I think time will and it really has come for US to THINK about the causes (unending speculative tendencies and alarming apatite for Profits of the banking sector) and try to put them under some controls. This is an easy way out that they have preferred. It gives some time for the eventual financial disaster that is looming large. The next bail out package may be for the US Treasury itself (take it lightly, please, if you can!)!
But here is an opportunity for the Indian banks to attract genuine investors. The money is safer with our banks and are yielding better returns. Just put this message out loudly enough opportunities does not come more clearly than this. If we miss this chance, even our banks will be swayed by the forces of the already drowning "International Banking Sector".
A CERTIFICATE PROGRAMME @ CFS !!
CERTIFICATION PROGRAMME IN APPLIED FINANCE
Course Promoter:-
This course is conducted by M/s Comprehensive Financial Services which is headed by Mr. Amal Dhru, a practicing Chartered Accountant and MBA from IIMA. It is a team of professionals with a very strong network to provide and ensure full client satisfaction.
The company provides gamut of services like: Designing and maintaining accounting systems, Designing & maintaining financial control systems & MIS systems, Management audits, internal audits and concurrent audits, Tax planning (for resident Indians, NRIs and OCBs),Financial engineering and structuring, Merchant banking, Mergers and acquisitions, Structuring of Portfolios.
Course Brief:-
Starting form 1 June 2009, it will be a 1 Year Certification Course which will include on job experience and 12 man days of class room trainings.
The participants are required to stay with the course for the entire year.
At the end of the programme, a Test will be conducted.
After the satisfactory completion of the course a certificate will be given by the course promoter.
The participants will get a monthly stipend of Rs. 3500/-.
The seats are limited to 15 numbers only. Short listing of the candidates is purely on promoters’ discretion.
Office timings will be strictly followed by all the participants. No other employment during the course will be permitted.
Benefits:-
The course is designed from the industry perspective to create a better employability amongst the participants. This course is an ideal launch pad for fresh aspirants who want to make a mark in the areas of Financial Management and Entrepreneurship.
Course Details:-
An insight into Book-keeping and Accounting practices and related tax regulations.
In-depth knowledge of financial management and its relevance in today’s scenario.
Understanding Basic Concept and application of Business practices, Taxation and Commercial Laws.
Preparation and presentation of Project Reports.
Knowing the processes of setting-up and financing of an enterprise.
Eligibility:-
Bachelors/Masters degree in Business Administration or Masters of Commerce.Bright academic record, fluency in English and very good command over computer is essential.
Credentials of Mr.Amal Dhru:-
Mr. Amal Dhru, is a fellow member of The Institute of Chartered Accountants of India and an MBA from Indian Institute of Management, Ahmedabad (IIMA), with more than 25 years of professional experience. Academics has been his obsession and has been associated as Visiting Faculty in the Finance & Accounting Area of IIMA, and other business schools, for more than 20 years.
Besides running his own firms, M/s. Amal Datt & Associates, and M/s Comprehensive Financial Services, he has been the Director of State Bank of Saurashtra, a Public Representative of Securities & Exchange Board of India (SEBI) for issue allotments, & a regular contributor at seminars, conferences, and journals at national level. His professional experience ranges working for multinational corporations to SSIs, from designing accounting system to investigations, from financial structuring, mergers & acquisitions to revival of sick industrial units with active involvement.
Contact:-
amaldhru@financefundas.com ; amaldhruv@gmail.com
Course Promoter:-
This course is conducted by M/s Comprehensive Financial Services which is headed by Mr. Amal Dhru, a practicing Chartered Accountant and MBA from IIMA. It is a team of professionals with a very strong network to provide and ensure full client satisfaction.
The company provides gamut of services like: Designing and maintaining accounting systems, Designing & maintaining financial control systems & MIS systems, Management audits, internal audits and concurrent audits, Tax planning (for resident Indians, NRIs and OCBs),Financial engineering and structuring, Merchant banking, Mergers and acquisitions, Structuring of Portfolios.
Course Brief:-
Starting form 1 June 2009, it will be a 1 Year Certification Course which will include on job experience and 12 man days of class room trainings.
The participants are required to stay with the course for the entire year.
At the end of the programme, a Test will be conducted.
After the satisfactory completion of the course a certificate will be given by the course promoter.
The participants will get a monthly stipend of Rs. 3500/-.
The seats are limited to 15 numbers only. Short listing of the candidates is purely on promoters’ discretion.
Office timings will be strictly followed by all the participants. No other employment during the course will be permitted.
Benefits:-
The course is designed from the industry perspective to create a better employability amongst the participants. This course is an ideal launch pad for fresh aspirants who want to make a mark in the areas of Financial Management and Entrepreneurship.
Course Details:-
An insight into Book-keeping and Accounting practices and related tax regulations.
In-depth knowledge of financial management and its relevance in today’s scenario.
Understanding Basic Concept and application of Business practices, Taxation and Commercial Laws.
Preparation and presentation of Project Reports.
Knowing the processes of setting-up and financing of an enterprise.
Eligibility:-
Bachelors/Masters degree in Business Administration or Masters of Commerce.Bright academic record, fluency in English and very good command over computer is essential.
Credentials of Mr.Amal Dhru:-
Mr. Amal Dhru, is a fellow member of The Institute of Chartered Accountants of India and an MBA from Indian Institute of Management, Ahmedabad (IIMA), with more than 25 years of professional experience. Academics has been his obsession and has been associated as Visiting Faculty in the Finance & Accounting Area of IIMA, and other business schools, for more than 20 years.
Besides running his own firms, M/s. Amal Datt & Associates, and M/s Comprehensive Financial Services, he has been the Director of State Bank of Saurashtra, a Public Representative of Securities & Exchange Board of India (SEBI) for issue allotments, & a regular contributor at seminars, conferences, and journals at national level. His professional experience ranges working for multinational corporations to SSIs, from designing accounting system to investigations, from financial structuring, mergers & acquisitions to revival of sick industrial units with active involvement.
Contact:-
amaldhru@financefundas.com ; amaldhruv@gmail.com
Comprehensive Financial Services Pvt. Ltd.Vatsalya, 3, BMM Society, Mangaldas Road,
Ellis Bridge, Ahmedabad 380 006+91 79 2646 6171, 2643 1049, +91 98250 15534
jalpa@dynamicworkforce.in
jalpa@dynamicworkforce.in
414 Advait Complex Nr. Sandesh Press Vastrapur Ahmedabad - 380054
Phone : +91 98795 66134
Job Job Job
The author questions the "Job Seeking" tendency ,its causes and effects.
The main news these days, if you dig a bit ,is the inability of Institutions and the economy as a whole to provide "Jobs" to the young graduates .
Unemployment is looming large. It really is a sad developement.
But the frustrations grow particularly because the best of the institutes were taking undue credits for the good placements that were offered to its alumni .This created a mad rush for the management institutes and many institutes erupted all over.
Detail:
A part of the credit rightfully belonged to the economic upswing that the world was witnessing. But this was just taken for granted!!
The time has now come for the institutes to concentrate on the academic excellence and on the quality building activities rather than to take excessive aplomb on the placement .
The real strength will come out out of this turmoil..
Markets play pivotal role in institution building also ! This supremacy of Market Factors is once more established.
There is always a room for excellence and let the young generation pursue excellence through academics and not Jobs !
The main news these days, if you dig a bit ,is the inability of Institutions and the economy as a whole to provide "Jobs" to the young graduates .
Unemployment is looming large. It really is a sad developement.
But the frustrations grow particularly because the best of the institutes were taking undue credits for the good placements that were offered to its alumni .This created a mad rush for the management institutes and many institutes erupted all over.
Detail:
A part of the credit rightfully belonged to the economic upswing that the world was witnessing. But this was just taken for granted!!
The time has now come for the institutes to concentrate on the academic excellence and on the quality building activities rather than to take excessive aplomb on the placement .
The real strength will come out out of this turmoil..
Markets play pivotal role in institution building also ! This supremacy of Market Factors is once more established.
There is always a room for excellence and let the young generation pursue excellence through academics and not Jobs !
Pacing the slow down
This blog gives some hope in the otherwise hopeless looking eco scenario
To be frank I do not subscribe to the slow down movements that are being seen all over the media for the Indian Economy !
5% growth ..certainly is not a sign of slow down !
Yes , it is slower than the expectations .agreed that and only that much .
In fact , under the guise of slowdown , there are opportunitis to cut costs!!
You can negotiate deals better from the buyers seat!
Detail:
Stay liquid and occuoy that seat for a longer cause!
It is a time to build capacities now ...so that we can take advantage of even the slightest up ward movement!!
It is the time to do some introspection. it is the time to CLEAN UP your accounts ,since no one expects a fantastic performance this year any way!!
The shareholders and even the bankers will not be too harsh if your bottomline does not grow this year . so if you have the buffer to tae some write offs ...just take this year as the year to come out clean. it is always better to be late than never.
Have a relook at the salary structures of your employees..cut the Fat there also . That will also be Understood under the shelter of a slow down.
These are my personal views I am sure the india incorporated is smart enough to have known this rather too well since quite some time now!!
To be frank I do not subscribe to the slow down movements that are being seen all over the media for the Indian Economy !
5% growth ..certainly is not a sign of slow down !
Yes , it is slower than the expectations .agreed that and only that much .
In fact , under the guise of slowdown , there are opportunitis to cut costs!!
You can negotiate deals better from the buyers seat!
Detail:
Stay liquid and occuoy that seat for a longer cause!
It is a time to build capacities now ...so that we can take advantage of even the slightest up ward movement!!
It is the time to do some introspection. it is the time to CLEAN UP your accounts ,since no one expects a fantastic performance this year any way!!
The shareholders and even the bankers will not be too harsh if your bottomline does not grow this year . so if you have the buffer to tae some write offs ...just take this year as the year to come out clean. it is always better to be late than never.
Have a relook at the salary structures of your employees..cut the Fat there also . That will also be Understood under the shelter of a slow down.
These are my personal views I am sure the india incorporated is smart enough to have known this rather too well since quite some time now!!
Got Started?
The recent upswing in the stock market has uprising of hopes of a revival ! whats to be done ?
Detail:
I have always been telling that the Indian Economy is well poised for a growth . We need to have a bit of confidence in what we think is required to be done . In the current situation , the world will be looking for less expensive goods and services (look at the international interest that NANO has generated). The only country that can take away a good bit of business opportunity is China .
Now we should understand that China has its own problems and it is a less attractive destination for investors. They can have an edge over us as a supplier , but certainly they will have o be humble when it comes to attracting new investments . I think we should try and attract their entrepreneurs for setting up shop here itself !!
We should not also underestimate the power of local markets . A bit of care and concentration to meet the local demand will also open up a large market.
The real problem lies with the attitude of our consumers and entrepreneurs . Many of them have become unwisely risk averse , thanks to the media sponsored recession !!
Detail:
I have always been telling that the Indian Economy is well poised for a growth . We need to have a bit of confidence in what we think is required to be done . In the current situation , the world will be looking for less expensive goods and services (look at the international interest that NANO has generated). The only country that can take away a good bit of business opportunity is China .
Now we should understand that China has its own problems and it is a less attractive destination for investors. They can have an edge over us as a supplier , but certainly they will have o be humble when it comes to attracting new investments . I think we should try and attract their entrepreneurs for setting up shop here itself !!
We should not also underestimate the power of local markets . A bit of care and concentration to meet the local demand will also open up a large market.
The real problem lies with the attitude of our consumers and entrepreneurs . Many of them have become unwisely risk averse , thanks to the media sponsored recession !!
Monday, October 6, 2008
Is an Indian CA better than a US CA
You better believe that we are emerging as a big economy . Its time now for us to believe in ourselves. I am telling this to my Fellow Indian CAs and Managemnt professionals .
Over decades , we have been following and believing that the professional ethics and quality set by the USA and their allies are much better than ours.
We have never bothered to question this despite the Enrons and Arthur Anderson episodes.
There is no reason for us to think that our talent is not equally, and in fact more (as proven by now) reliable than those exposed by Enron and Lehman .
What the so called leaders of the profession and "independent watchdogs" like the BIG FOUR doing , say in case of Lehman...please go through this link.
http://www.retheauditors.com/2008/06/lehman-cfos-problem-is-obvious.html
I want your comments ...is indian CA better and more reliable than its US counterpart?
Thursday, October 2, 2008
real value of the investments!!
I wonder why people are wondering about the recent collapse in the stock markets and the rush towards insolvency by major players in the money game.
What else was expected?
Lets be honest.All the investor, no matter small or big, expect that there will be someone to buy his investment at a higher price and as the expectations of growth are growing..the prices go up.Rumours and overoptimism help in hastening this price rise.This leads to a spiralling effect and profits of a company are given higher and higher multiplying effect to establish a higher stock price.
I really wonder why should anyone give such a huge multiplier to a company's earning?
It is only a small dividend and a once in a while bonus share that the real investor really earns . The rest of his earning rests s completely upon his luck to find another investor willing to pay a higher price for his investment.
The banks almost went crazy to lend funds hoping to see a further boom in the realty market.
The entire skills of the analysts were concentrated upon justifying their wishful thinking and unjustifiable investment decisions . Their pay packets and their value of ESOPs and bonuses ultimately depended upon the "performance" that they show .Creating and continuing a boom phase, by hook or by crook was irresistible.
I wonder where were the auditors and transparency seekers gone till now .
PLEASE READ MY BOOK "FINANCEFUNDAS.COM" FOR SOME MORE COMMENTS ON THIS.
What else was expected?
Lets be honest.All the investor, no matter small or big, expect that there will be someone to buy his investment at a higher price and as the expectations of growth are growing..the prices go up.Rumours and overoptimism help in hastening this price rise.This leads to a spiralling effect and profits of a company are given higher and higher multiplying effect to establish a higher stock price.
I really wonder why should anyone give such a huge multiplier to a company's earning?
It is only a small dividend and a once in a while bonus share that the real investor really earns . The rest of his earning rests s completely upon his luck to find another investor willing to pay a higher price for his investment.
The banks almost went crazy to lend funds hoping to see a further boom in the realty market.
The entire skills of the analysts were concentrated upon justifying their wishful thinking and unjustifiable investment decisions . Their pay packets and their value of ESOPs and bonuses ultimately depended upon the "performance" that they show .Creating and continuing a boom phase, by hook or by crook was irresistible.
I wonder where were the auditors and transparency seekers gone till now .
PLEASE READ MY BOOK "FINANCEFUNDAS.COM" FOR SOME MORE COMMENTS ON THIS.
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