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 .

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!!

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".