So far in India no meaningful debate started about the ill side effects of this real estate bubble. In this article we discuss about the role of corporates.
Personally, I don't think our corporates (barring a very few, may be handful) are as intelligent as we think. Everytime when RBI comes up with Interest rate hike one Mr. Deepak Parekh would come on TV and talk bullshit. Basically guys like him does not want RBI to raise rates. Because they think that will reduce their company profits and consequently it would have an effect on their take home salary. How selfish?
K.V Kamath is another guy who resents every time interest rate is raised. These guys fortunately headed their respective organisations during boom period and only because of that considered as intelligents. How pathetic? Basic common sense says that growth should be organic and reasonable. To control inflation we need to compromise on growth. These men would not agree to this fact and the only reason that comes to my mind is selfishness.
Personally, I don't think our corporates (barring a very few, may be handful) are as intelligent as we think. Everytime when RBI comes up with Interest rate hike one Mr. Deepak Parekh would come on TV and talk bullshit. Basically guys like him does not want RBI to raise rates. Because they think that will reduce their company profits and consequently it would have an effect on their take home salary. How selfish?
K.V Kamath is another guy who resents every time interest rate is raised. These guys fortunately headed their respective organisations during boom period and only because of that considered as intelligents. How pathetic? Basic common sense says that growth should be organic and reasonable. To control inflation we need to compromise on growth. These men would not agree to this fact and the only reason that comes to my mind is selfishness.
Now RBI Governor is facing the music. Eventhough they knew the real reason they are unable to raise their voices against their bosses and they cannot withstand the pressure brought by the corporate mafia. Corporates talk about the ineffectiveness of RBI's policy on interest rates. Bull Shit. Why not corporates bat for regulation in Real Estate sector in the same way they are shouting for retail FDI?
We all know how the corporates are fudging their books in India. Satyam computer is best example. Even now, I have my doubts about ICICI bank's books. During 2008 slump it was rumoured that ICICI bank lost a lot in toxic sub prime assets ( Under K.V.Kamath). Nobody knows what is there in their books.
They are crying now that interest rate hike is affecting liquidity. But how come they are still showing 30% more profit every quarter than the previous quarter ? If that is true why crying?
In my view, RBI should stop listening to these mafia and go ahead with their rate hiking spree to control the inflation. If the liquidity is sucked out, automatically the money from RE sector will come out and common man can live happily.
These corporate mafia are rumour mongoring now by saying that the interest rate cycle has peaked out. They show the IIP data and GDP data to substantiate their claim. But in my opinion only inflation should be considered for any rate decisions. I remember during 1998-2000 we had higher interest rate than the prevailing interest rates.
We all know how the corporates are fudging their books in India. Satyam computer is best example. Even now, I have my doubts about ICICI bank's books. During 2008 slump it was rumoured that ICICI bank lost a lot in toxic sub prime assets ( Under K.V.Kamath). Nobody knows what is there in their books.
They are crying now that interest rate hike is affecting liquidity. But how come they are still showing 30% more profit every quarter than the previous quarter ? If that is true why crying?
In my view, RBI should stop listening to these mafia and go ahead with their rate hiking spree to control the inflation. If the liquidity is sucked out, automatically the money from RE sector will come out and common man can live happily.
These corporate mafia are rumour mongoring now by saying that the interest rate cycle has peaked out. They show the IIP data and GDP data to substantiate their claim. But in my opinion only inflation should be considered for any rate decisions. I remember during 1998-2000 we had higher interest rate than the prevailing interest rates.
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