Monday, June 18, 2012

Rate cuts and Subbrao

Kudos to Subbarao

RBI Governor D.Subbarao comes to party. Even though he comes late he came latest. Inspite of all the pressures from Government, Corporate Mafia and media brokers he held his fort like a man possessed. This gives us a comfort that atleast somebody is thinking long term for the betterment of country. As I wrote earlier, he was a worried man after last month mis adventure and he is now trying to make amends.

Inspite of Pranab Mukherjee's pressure, he handsomely declined to cut the rates. In fact the brokers and mafia should thank their stars for Subbarao not to raise the interest rates. Such is the state of economy that cutting rates is idiotic.

SBI and Its Chairman

Like a cheap road side fellow, SBI was trying a cheap trick last week. They claimed to cut rates from 0.5 to 3.5 for some sectors which no one heard of. They also said that they will cut further if RBI cuts CRR. They claim the SBI interest rate cut was not applied to retail. Some sections of SME and Agriculture was the beneficiary. As a ex-banker we know already the agriculture loan normal rate id 7-8 and below. Did they cut to 4% now? Whom they are trying to fool. Subbarao ignored these cheap tactics. Many know that this cheap trick is to induce RBI to cut rates and then swallow the interest into their balance sheets. I wonder why SBI forgot it social objectives and competing with blood suckers like HDFC and ICICI?

Godrej Comedian

This guy who could not come up with any reason for rate cut in CNBC today. But repeatedly telling that we need to cut rates. Now he started saying we need to cut CRR. Until last month he was talking about Repo. Now he was taking about CRR. Somebody might have told him that SBI is begging RBI for CRR cut. So he also started like a tape recorder. We know he forayed into real estate and he wants that bubble to be inflated further until he sells all his assets. Poor guy.

Tale of Core-Inflation

Media brokers and Corporate mafia found and coined a new term called core-inflation. I really dont understand these guys. Are they really idiots or acting like one? we need to know this. When RBI says people are suffering from Inflation, these idiots are telling core-inflation is reducing. Core-inflation means manufactured goods inflation. Am I buying heavy machineries to my home every month? I buy groceries damn it.

What policy paralysis

Until now, our fuel prices are regularised. We were not facing issues. Why now? suddenly all are talking about policy paralysis. If the govt allows FDI in retail and FDI in aviation do you think our economy will improve? No. Mallya's financial condition only will improve.

Attack Real Estate

For real growth to return, we need to prick the real estate bubble.

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