Stupid or cheat?

Now we are all set of mid quarter monetary policy from RBI.

Already the blood sucking corporate mafia and financial markets gave their views and their reasoning through their broker analysts to RBI. Their point is that the vegetable prices are going to come down from next month, so inflation will cool down from next month. So RBI need not hike rates. In case if their conscience troubling them, they are allowed to raise the rates by 25 basis points. Now since there is no one to represent common man to RBI, they ( RBI) will do exactly the same. We will analyse this deeply.

1. Food inflation is only 14% of overall WPI.  If the 20% raise in food inflation in the month within 14% weightage comes down even to 10% next month how that is going to result to huge downtick of inflation? What about other components?

2. The baby steps of Subbarao amid Chidambaram's blackmailing is well documented. Still why we are raising rates at quarter point every time? even countries like Indonesia and Turkey have more spine than our central bank when comes to rate hikes. We need 1% hike at one go and that is to be kept for 6 months to solve this problem once for all.

3.  To control inflation, the rates should be more than inflation by atleast 2% points. 25 basis points is nothing and the system will easily swallow it and it also confirms the fact that Govt and RBI are not willing to control inflation and this adds to inflationary expectations.

4. People have spoken through assembly elections and if still congress does not get the message then one thing is clear. Government and rBI wants to help brokers at the expense of common man.

5. I have written amply about the 'food inflation' and 'supply side' bull shit theories. these theories are written by idiot economists to hoodwink the public and it is sad that many people fall prey to this. When inflation ruled at below 4 or 5, were we not have 'supply side' issues?

6. People who ignore this points in my opinion may either by stupids and I dont think they can be so stupid and if not, they must be cheats. one of these two. YOU CHOOSE.

7. In the last 5 years, our interest rate never even close to touching the inflation figure and forget about the inflation +2 and also we do not follow CPI like other countries do.

8. Now Raghuram Rajan's credibility under stake. He has to take one path. Is he falling under the category of  stupid/cheat or he really a economist/patriot?

9. The single minded fanatic focus on 9% GDP landed the country in great mess. 9% GDP - minus 12% inflation and we are already going down. What the F***?

10. And even a child won't believe govt figures. Then I think the inflation must be above 20% and it is ironic some people celebrating 9-11% salary hikes when inflation well over 20%.....? what a joke?

Good Reads

http://www.firstpost.com/economy/raghuram-is-enabling-govt-to-run-biggest-ponzi-scheme-1289615.html

http://www.business-standard.com/article/finance/year-2013-unexpected-reversal-of-interest-rate-cycle-113121600661_1.html

http://www.livemint.com/Opinion/57M0ooklRGW7Z0HAUHXlkK/Indias-latest-political-problem-inflation.html

Price rise contributed to defeat - Sonia

Strangely Sonia admitted inflation contributed to their defeat. What a joke.

Economic indicator of UPA government is Nifty/Sensex Index. If that is hitting all time highs they why they should bother?

All along they helped real estate mafia and share market sharks. Consequently it contributed to inflation.

Now they are victim of their own deeds. Why shedding crocodile tears?

Picture abi baaki hai

Where is the great manipulator Chidambaram?

They should atleast now understand markets are an animal which cannot be satisfied by anything and ruling class aim is to satisfy people and not markets. Will they learn the lessons?

Is it so near??

No change again in freshers' salary: TCS | Business Standard

when mangoman says inflation pinches..you laugh...but when corporates fraud new joinees we keep mum...

Moily's diesel maths doesn't add up | Business Standard

This guy is telling he is gonna to deregulate diesel price in 6 months knowing fully aware in 6 months he will be jobless...he wants to sell IOC to unassuming public..so he openly lying..still no body questioning his intent...good country

Red flag over realty exposure of banks | Business Standard

When mangoman says the country's banking network is fullly gone due to real estate, you laugh and brand mangomen as party pooper...now what?

stilll may to come out...


Interestingly Maharastra government says they are not going to honour RTI applications about housing societies. Is there law exists in this banana republic?

Is Raghuram Rajan beginning to disappoint?

This weeks market manipulation by Raghuram Rajan in support with government is well documented and I do not want to add anything more to it. The blatant way in which  government threaten the market is scary. Even Raghuram Rajan is taking comfort at the minuscule improvement in the core inflation which nobody is able to see :)

The question is that whether RGR started to panic and falling in line with the fraudsters who run the country? If so, then it is very scary situation.

The IIP is in -ve for many months now and is being shown positive with lot of data manipulation.

The inflation is in double digits for many months now and even that is manipulated to  maximum possible extent even then these data are ugly looking.

These guys are now looking for divine intervention and thus making our life dangerous. I am beginning to lose confidence on Raghuram Rajan also.

When you can cut MSF rate any time, why not you increase Repo Rate anytime to tame inflation?

The matter of fact is RGR is not a inflation hawk, he is merely another pawn or puppet for the government.

Can Raghuram Rajan make history?

Can Raghuram Rajan make history?

This is the question on everyone's mind now. The basic economics is playing out and that is showing in the banks balance sheets now. Banks like United Bank of India and Central Bank of India have shown huge loss in their profit and loss account. Many other banks shown a good decline in their net profit. Few other banks managed to show higher profits only due to the restructuring of their prime borrowers. So the ugly window dressing which was happening in the Indian Banking Industry is coming down and the coming quarters will show more losses.

Now since RBI is indifferent to the bankers cry for cheap liquidity, some banks have raised the deposit interest rates. Still this trend is not reflected in the advances interest rates. I guess it is only matter of time as the Indian Benchmark 10 year bond yield crossed 9% today.

Now what we request and beg Dr.Raghuram Rajan is sit tight and not to give long rope to this lazy bankers of India. Let the bank which has good risk control mechanism come out of the slump faster. In the process the economy will be corrected automatically. The early signs of  real estate bubble is showing. Again RBI has to keep quiet and sit tight and allow the bubble to burst. If RBI again supports broker/corporate mafia then the much expected economic recovery will never come.

Now RGR can make history just by sitting tight? will he?

Chidambaram wants you to spend

http://www.business-standard.com/article/economy-policy/chidambaram-wants-you-to-spend-because-he-cannot-113110600623_1.html

Fully knowing that the economy is thoroughly screwed our FM wants us to spend while he tightens the purse. What a farce?Lawless country. Who will save common man?  I will not be surprised if our FM tell us to buy apartments to save the brokers and the corporate mafia tomorrow. He simply ask us to borrow and spend for broker's sake.

Rates are hardening not because of government is willing, but the economical situation forcing them to do that. Now Rupee started downtrend and also the festival sales bombed we are ready to face the next set of bad news. Last heard SBI and HDFC base rate touched 10%. Things are in right direction.

New highs for Equity Indices :)

The Indian share markets are hitting new highs. Investors are laughing all the way to bank. The advance decline ratio of the shares are heavily in the favor of advances. Except the first sentence all the other sentences are dark comedy. We are witnessing a strange rally wherein nobody is making money.

Even the FII's who are controlling the markets also not making any money in this rally although I feel they are trying their level best to control their losses. As I said, the below article says about the FII's plight in Indian Stock market. http://www.firstpost.com/investing/hotel-california-sensex-remarkable-belief-of-fiis-in-india-1206073.html

Now we are seeing some articles in main stream media about the disconnect between the food production and food prices. If this is indeed true ( which is very true if you see through common sense), then this is shame on  economist PM, Harvard educated FM etc. All these cheats are fooling us just to make money for themselves. Drinking own citizens blood in order to stay in power is unbearable.

Whoever talks about supply side issues are cheaters and the inflation in India is purely because of excessive money printing and there are plenty of evidences for this farce. RBI has become a laughing stock.  A large portion of people are robbed in the name of inflation and very few of people are benefited.

The end game is near as the inflation is uncontrollable now.  We are in stagflation.  

The much hyped October festival sales bombed everywhere. Car sales figures slapped at the face of corporates and rulers.

Out of targeted 2000 crores of consumer loans in a large PSB, so far only 6 crore has been disbursed. I have never seen people buy fridge and washing machine by borrowing from PSB. Desperate attempt of cheaters are bombing at their face.

HSBC services PMI is -ve.

IIP data is -ve.

What else?  Still these guys are not serious and shamelessly celebrating the cooked up CAD figures. Our Government is not bothered about rewarding the savers and they are not bothered about the smuggled gold into the country as they donot want the gold import figures officially affecting their CAD. I see no evidence that people stopped buying jewels suddenly to save the ass of the corrupt government.

Only hope is RBI and Rajan. But will be act before we reach the point of no return?

Hotel California

http://www.firstpost.com/investing/hotel-california-sensex-remarkable-belief-of-fiis-in-india-1206073.html

Please read the article from the above link which matches with mango's views. Thanks to firstpost.

Questions to Raghuram Rajan

http://www.firstpost.com/economy/why-should-we-tolerate-inflation-10-questions-for-raghuram-rajan-1200701.html

Thanks Firstpost  - Nagasundaram

Now since the honeymoon period is over for Rajan, we want answers from RBI

Mango's take on October 29

Raghuram Rajan raised the repo rate and signaled that he wants to attack inflation and he also made right noises about...

1. Inflation
2. Real positive return for savers
3. Importance for CPI

Meanwhile markets liked it, mostly they expected it as the bankers are gushing about the reduction in the MsF. Also the bankers get extra repo windows in 7-day and 14 - day. The FII's who drive indian markets are going to show new high in next few days ( possibly in 2 days)..will this bring retail investors into share market? I hope not.

Also whatever RBI eased is not going to help the corporate mafia and this will surely help banks to window dress their balance sheet for another 1 or 2 quarters. But surely the end game has begin for Indian banks.

Nationalized banks balance sheets are showing the true situation nowadays. Have a look at Syndicate bank and Maharashtra banks results announced in this 2 days....now since 2 banks has come out with ugly results all the bankers who were waiting in the sidelines to declare their results will come out.

these nationalized bank guys were waiting for some banks to declare results so that their number did not look ugly. Interesting.

Now I think with increasing inflation RBI is gonna to raise REPO every month and it is fun time. Meanwhile the much awaiting festival session is failed as per the preliminary news. But the end result has not come yet...

Let us wait.

What is Raghuram Rajan doing?

We all praised RGR for raising Repo rates even though eventually he reduced short term rates in the form of MSF rate reduction last month. He got the benefit of doubt last week. We thought that by signalling Repo rate as primary tool, there may be more repo rate hikes in the offing.

The hawkish tone in the last policy print is commendable. But now things are not that clear especially with the last night MSF rate reduction, he has made reduced the short term rates up to 1.25% which is huge. The lazy Indian bankers will hail this and they will get confident that they can milk RBI further. This is not correct as far as fixing the economy is concerned. Still we want to give benefit to doubt to RGR as he is our only last hope to fix the mess created by RBI under Indian government pressure.

Is he going to raise the Repo rates now? If he wants to that, why not he do that now?He played along with Chidambaram in extending consumer loans at concession rates which a RBI governor should never do. He would have instructed RBI Deputy Governor to go and talk against the idiotic move as he cannot do that :). He may justify that in Indian system that is all we can do. But still??

But he also should know that a lot is expected out of him and he should not wilt under any pressure and he should not walk in the same trap / route in which Subbarao walked/trapped.

Now the onus is on RGR to prove himself as time is running out. The conspiracy theories such as 'RGR is brought into RBI only to buy time and save the corrupt congress govt' will gain momentum unless he acts otherwise to save the sinking ship.

Welcome Raghuram Rajan

Raghuram Rajan has come with a bang.

He refuses to join the FED party and signaled that he is going to target the inflation. While this augurs well to the long term financial health of the country, in short term some inevitable pain is bound to happen for leveraged players.

As expected the corporate mafia is upset. The political class who thought Raghu is a pushover is shell shocked. Chidambaram did not come on TV from yesterday. Montek Singh is so shell shocked yesterday as he refused to comment on RBI policy initially only to do a volte-face later on. We will take you through a happenings around Monetary policy from Mangoman. Your only source of very honest and open and brutal truth of Indian Economics.

Chidambaram

Chidambaram would have thought Raghu would help him to buy time until next elections.  This is especially true when Raghu said last year that RBI was having room to cut rates. My opinion is that Raghu underplayed until he gets the chair and after getting the chair he is doing what he has to do. I fully support his action. That is how we need to do it.  Montek Singh who looks like a intelligent is so shocked yesterday and as usual he predicts good times for economy from here on. It should be noted that he along with C.Rangarajan predicted   the bottoming out for the past 5 years which is  unprecedented. Entire political class may not be happy now. But they have no other option but to wait.

MSF and REPO

The actual policy action is that Raghu reduced MSF rates from 10.25 to 9.5 and increased Repo rates from 7.25 to 7.5.  In actual terms this is net positive for banks. Banks and Industry to be thankful for him to reduce the rates. But still they are critical of him. This is because he sounds very hawkish and raised the rates.

The actual fact of the matter is that the MSF is primarily a liquidity instrument and banks are not supposed to borrow in that window. If a bank is doing good business they will manage their own funds and even in times of crunch Repo would help them. If Repo also exhausted then they should go to MSF which was introduced recently after Lehman collapse. But the in-efficient Indian bankers now claiming MSF as a birth right and continuously using this window for their day to day operations. This is because

1. For most of them their loan book is nothing but a sham.
2. A lot of money is stuck in real estate and except the retail loans all the other loans are stuck and they merely do  a CDR or eve rgreening of loans. Even then they are showing huge NPA's inspite of CDR's.
3. That causes them to draw money from Repo daily to the tune of 2 lakh crores until few months.
4. Since Subbu restricted Repo they are using MSF.
5. Instead of being happy to see reduced MSF, they are concerned.

Pratip Chaudhuri

A side comedy show is being enacted by SBI Chief. In my opinion is one of the chamcha's for Finance Minister. Having broken his nose twice during previous Subbu's regime, he is not stopping talking nonsense. Already ridiculed once by Chakraborty, he is not stopping talking about CRR. He always advocates the CRR should be abolished.

Yesterday Raghu took a dig at him by telling that CRR issue is a peanuts compared with larger issue. Now we can take a informed decision whether IMF economist Raghu is right or Chaudhuri?

After Raghu spoke about peanuts, Chaudhuri was furious and he shows his displeasure known by telling the MSF rate reduction is peanuts for him. What a loser?

I have already written a few articles about this Chap. Last week he spoke about SBI flushing with funds and now he says he is gonna to raise rates. He may tell because of others increasing rates he has to. Whatever may be.

I wonder what is his problem in raising the rates? probably he thinks that if he raises rates then the valuable borrowers like kingfisher will not borrow from him? Is that it?  The dancer who does not know dancing is criticizing the stage. This is what happening in India.

Pratip Chaudhuri is a typical example of Indian Banking System. The lazy bankers.

Raghuram Rajan

Now Raghu having raised Repo and has given a message to market and others that he is gonna to attack inflation. But mangoman is not ready to give full marks to Raghu even though I feel he started right. In my opinion Repo has to be raised to another 1% immediately.  There are thousands of policy rates floating around in India. He has to abolish all rate and keep only Repo and CRR.

The good thing he said is that unlike Subbu, he said he is neutral and not committing anything to corporate mafia in terms of rate cut. He links rates to inflation clearly. That is only the reason markets as well as corporates, bankers all are upset.

Raghuram Rajan Effect on Brokocracy

A rally in FII controlled stock market. A marginal retracement in the badly battered Rupee. That is all it takes for the economic pundits to say that Indian economy has bottomed out and the Raghu magic has started.

Is it true? In my opinion it is too good to be true. What is true is that Raghu has done some home work and has come well prepared. He has taken a gamble. Whether that is a calculated gamble or not will be known in due course. The outgoing Governor is spot on when he says Raghu should try to come out of the chakravyuga in Indian Economy. We will see in detail later in the article.

Let me summarise clearly. What is the problem now?

1. High Current Account Deficit 
2. High Fiscal Deficit
3. Low Rupee Value
4. Corporate Balance Sheet Stress
5. Banks Asset Stress

Simply put this is all due to a single reason, and that is corporate greed. The growth which we see now is a myth and you ask anybody. Except a handful of people everybody else is feeling a lot insecure today than 10 years back. Even for the rest, the secure feeling they have is mostly false. The perceived value of their real estate asset is the reason for their brave face and that too will go in few months time from now.

Before go into further details, please read the following article http://www.thehindubusinessline.com/opinion/the-qe-that-no-one-noticed/article5101290.ece?homepage=true    which says  that the The size of the RBI’s balance-sheet in March 2002 was close to Rs 3,50,000 crore. In March 2013, it had ballooned to as much as Rs 22,00,000 crore.

This mindless expansion has increased the inflation hugely and any economist who has a different view should be either a idiot or a cheat. In India the problem is without applying the basic economics everybody is talking about out of box solutions. Because these cheats very well knew that the basic economics is not supporting their cheating ways. Hence, if any corporate or bank guy says that RBI is following a tightening monetary policy, either he should be a lunatic or cheat.  And since a majority of them falls under the category of cheats. What are their arguments?

1.  India needs 9% growth every year because the population is huge and inflation is not at all a problem and many people has come out of poverty because of monetary expansion.

I am asking why there should be 9% growth and how it can sustain? The corrupt politicians fell into the trap and to satisfy the corporate crooks they made this expansion happen and now we are in the situation where we are now.

In 1990 if they fix 10 Rupees per day as poverty line limit and if they use the same 10 Rupees per day as poverty limit now in 2013, then we have no other option then to doubt their pa knowledge.   The figures I use may differ. But the matter of fact is we need to calculate accurate figures there and try to fix the poverty line and then decide how many came out of poverty? This should also includes the life style of current years. This should also include the kind of social security we have. Even a dog cannot believe that quality medical facilities and education facilities are available free in India.

Let us see, how this expansion spoiled the country. This is nothing new.Easy money flows to banks first because rates are low. Due to inherent weakness in the Indian system the money is not properly monitored and so most of this money went into unproductive areas. This very well explains that except the Golden Quadrilateral which is the contribution of BJP, we have not built any infrastructure. The money thus printed only helped a select set of corporates and they are the people who having tasted the cheap money is still asking for cheap money. I can give some names. You can add entire CII and FICCI goons in that.  Not to forget the Real Estate Mafia. The easy money flows into real estate naturally because the sector is run by black economy. The easy money finds real estate as the parking space. The 2000's is the time where government pushed the housing loan in big way. This along with the balance sheet expansion shows that it is a planned conspiracy by the government. The government supported real estate by giving income tax concessions and also it gives virtually free hand to the real estate goons to loot the country.

One interesting observation I make here is that entirely 90% of Indian upper middle class is heavily invested in real estate and 50-60% of middle class in invested in real estate. Now these people who has heavy presence and influence in media and other places are supportive of government's expansion policy only because it further increases their real estate asset value. This personal interest is stopping them from seeing the real effects. 'The emperor is naked' effect.

Coming back to the point, the bad thing about the easy money is that it asks for blood continuously. This we are seeing in US and Japan as well. First you reduce rates. Then when you hit 0 % rates, then you buy bonds ( Japan). We are going against the basic economics here and these countries are finding it hard way. In India's case, this is further complicated. These countries with huge money printing still do not have run away inflation. But we do have all the extra problems.

We, Indians by nature are not disciplined. So now almost all corporates lost the ability to do the business with decent returns. We found real estate is the best investment and almost all the corporates in India dabble in real estate. The problem is that the corporates compare the profit they make in their core business with real estate and conclude that real estate is the best business, or conversely they expect the same profit margin of real estate in their core business also. We do not know who spoiled whom. Finally everything is spoiled.

The effects are showing now. This has become a ponzi scheme. Now to continue this business we need the following:

1. The inflation has to go up in the same rate ( 10% per annum)
2. People earning also should go up in the same pace

We know the later cannot happen. Even the inflation also cannot go up at this rate, and if we continue at this rate, then we are staring at Zimbabwe kind of situation in few years from now. Please google search for inflation in Zimbabwe to find the scary things.

To cut the story short, the income levels are not increasing. The government cleverly avoided investing in education and health care. It is strange that Indian governments, instead of building hospitals giving insurance cover to people for private hospitals. We, like a beaten to death dog, not asking any question. All education is privatised and shamelessly ask us to go for education loan in nationalised bank which again has our money.

Now to cut the story further, Raghu is expanding our balance sheet further. Basically in my opinion he is buying time for Congress until the elections.

But still I trust Raghu for the following reasons

1.  He may know all this and he may want to really help the country.
2.  Based on the above assumption, by buying time he may want to
                  a) Prick the RE bubble
                  b) Discipline the corporates
                  c) Control the inflation
3. The noises he made so far made me think that he intends to do all this given above.

But again, he has to face heavy opposition from

1. Corrupt Government
2. Corporate Mafia
3. People ( yes, having invested huge in Indian real estate, we Indians ourselves may not allow him to do right things. It is strange but it may happen)

However in short term, the SWAP things can go against him if he cannot deliver in Rupee front. Because the hedging cost is borne by RBI now and he is giving fixed cost of 3.5% to the banks now. As usual banks are going to splash the money to real estate brokers as we are in brokocracy ( we are not a democracy). So the real risk is that RBI will have to borne the hedging cost. That may complicate the situation further.His brave pitch against corporates (promoters) may look good initially. But he will be taught a lesson or two from our corporates shortly.

I may continue the article :)

Raghuram Rajan have to show some spine

Mangoman wrote few days back that Rajan has to be judged after his first monetary policy. But now the situation warrants that mangoman write something to Rajan before he takes over from Subbarao.

1. Corporate mafia will start shedding crocodile with every new person coming into Mint street. He should be wary of these cheats as they are responsible for the economic collapse of India.

2. Rajan should teach them the basics of economics and basic ethics of business practices. He also should tell them the importance of doing business with decent margin than obscene margin.

3.Corrupt government is not going to encourage rate increases. But Raghu has to bite the bullet as the RBI's bond sales are continuously devolving. That shows the system is screaming for rate increase. Anybody who takes are rate cut at this juncture must be a criminal.

4. Gold consumption is going to hit sky high. Better not to treat the symptom. He should straightaway raise the deposit rates and should make the financial instruments viable.

5. He should look into banks like Yes bank and Indus Ind bank and see that how many rural branches they have, instead of asking the new banks to open 5000000 new rural banks when they start operations.

6. He should tell cleary which inflation measure he is going to follow  WPI or CPI? Central bankers cannot talk as per their whims and fancies..

              ( to be continued)

I told you so...

http://www.business-standard.com/article/economy-policy/finmin-blames-rbi-policy-project-clearance-lag-for-economic-slowdown-113082800165_1.html

As I said, Chidu blames Subbu.

god saves the country

Accounting fraud

RBI allowed banks not to make provisions for restructured loans for infrastructure loans. This along with tweaking in the bond loss accounting saved more than 1 Lakh crore loss in Indian banking industry this quarter alone

Apparently this is done to show(prop) up the bank balance sheets.

Shame on you guys. Why not removing the prudential accounting norms altogether?

Comedy by Economic Times

I read a interesting piece of view in Economic Times editorial few days back.After shedding crocodile tears about the fall in Indian currency in few sentences the newspapers says that

' we knew about this (collapse of rupee and markets) much earlier. But not to make people panic we did not write this in our newspaper. we have ethics blah..blah..blah..'

My comments

Most idiotic statement has come from times. We know times is interested party in propping up the bubble . The own artha property and are neck deep into real estate business also. Be informed that this newspaper always paints a rosy picture about the economy and had a huge role in propping up the real estate  bubble in the country. Many insuspecting news readers would have fell for the advertisements and recommendations given by the paper.

Remember with every monetary easing, this newspaper is used to write 'your home loan rate is coming down' even though the benefits are not passed on by banks. Now they are taking credit on both sides. There is a saying in tamil.

பேய் ஆட்சி செய்தால் பிணந்தின்னும் சாத்திரங்கள்...

Markets slap it on the face

RBI and government are working in tandem to rape the real savers of economy. To help a handful of people who get benefited from the banking system, they keep the entire Indian population to ransom by resorting to keep the interest rate artificially low for extended period for may be about 5 years now.

The system is screaming for rate hike but RBI is resisting the temptation to support the people who are in power. Also the government is successful in creating a section in media and as well as general public who can support rate cut. Most of them are idiots and few of them are interested parties who think that their real estate 'investment' will not lose value if the rates are cut. How pity?

Now yesterday RBI tried something and Mangoman thought that markets may rally for 1-3 days. But markets ( how cunning this animal is..) gave it right back at RBI and fell for about 2%. so now what?

Rupee is touching new low everyday. This is kind of record of sorts.

You have to read foreign media about the real damage to Indian economy.

wall street journal, economist, reuters etc are rapping india down. And many of them in the opinion that India deserve a downgrade. So what? WE WANT TO SAVE OUR REAL ESTATE GOONS. LET COUNTRY GOES TO HELL. am I right?

RBI is goofing up further :(

They say Raghuram Rajan is appointed as officer special duty to RBI. But the effects are not visible or shall I say it is working contrary to our belief?

RBI apparently expecting short term results decided to inject money again into the system (yes, the same Indian banking system which they think are punting in Dollar and thus eroding Rupee value) to the tune of 8000 crores. They panicked by seeing the short term bond yields going up. These guys will never learn the lessons.

They say Raghuram Rajan is inteligent and will do the necessary for the economy. But it seems he is panicking more than others.

Equity markets are shaky
Bonds markets are shaky
Commodity markets , the less said it is better

Raghuram Rajan should know one thing. He should not try to emulate Chidambaram's method of talking up the market on day to day basis.

As mango rightly predicted 2 days back, RBI allowed our banks to make adjustments in their bond portfolio so that they need not make provisions for 40000 crores loss they made in 1 month. long live Indian Banking System and RBI.

Now what next?

RBI, Can you save markets for 2-3 days due to this measure? Do you know, by this measures you are still accentuating the issues?

I wonder still nobody in this government is talking about over priced real estate which is the root cause of all the evils. But I salute the real estate brokers for the influence they have in the current establishment.

Worst fears have come true

Few weeks back mangoman argued that government is looking for some scapegoat for all their mistakes. And they have zeroed in RBI governor Subbarao. This is confirmed now .

Yesterday Manmohan Singh said 'fresh thinking' is needed from RBI in monetary policy. My blood is boiling. He, his finance minister and the people who pays him ( the corporate mafia) all forced RBI & Subbrao into lowering rates and shamelessly now talking about fresh thinking.

Saving Asses of real estate brokers is the single point agenda of Congress and Manmohan Singh by opening his ugly mouth shows what is he.

http://timesofindia.indiatimes.com/business/india-business/Manmohan-Subbarao-spar-over-RBIs-policies/articleshow/21887267.cms

“RBI was committed to inflation control, not because it did not care for growth; but because it cared for growth,”  Subbarao Said. 

This is like a slap in the face. But still I dont think corrupt stooges would understand the message.

Bond Yields are rising both locally and in abroad

US 10 year bond yields at closing high of 2.83 and as per technical studies it is poised to touch 3.5 soon. This is going to cause much problems. FII will run for cover from Indian markets as US yields are much better than Indian yields after adjusting to hedging costs.

Indian stock crash yesterday is a precursor for the things to come.

When Mangoman was begging for rate hikes he was ridiculed. Now the history repeats and idiots who decide economic policies are made to eat humble pie. UPA screwed the country handsomely and almost 30% of Indians investing in real estate to neck deep and praying for rate cut. All businesses are involved in real estate and praying for rate cut. My dear stupids, if everybody want to sell the plots and flats at higher prices, who the hell is going to buy from you?

Who is earning nowadays? Do you know for the past 2 years how many jobs created in the country? Do you know 70K engineering seats are vacant in Tamilnadu alone?

Subbarao's parting time bombs starting to burst.

1.  The repo limit controls indirectly increased the rates. Now it is matter of time to increase rate really.
2.  The capital controls measures last week is the last nail in the coffin.

Thank you Dr.Subbarao, you have given back to the government in the same coin. Let us hope the excesses are swiftly blown away.

Next in line. Real Estate of India. The government is hell bent to save the brokers community and now it is time for them to face the hard realities of life.

SOVEREIGN DOWNGRADE IS SO NEAR. IF THE RATINGS AGENCIES DO NOT ACT NOW THEN WE MAY HAVE TO DOUBT THEIR INTEGRITY AS WELL.

WPI shoots up where is ready to sell wife lobby?

Now since the WPI shoots up and currency is on the verge of collapse the 'ready to sell wife for a rate cut' lobby is conspicuous by their absence. These idiots are responsible for the collapse of economy by forcing the RBI to cut rates or preventing the RBI from raising rates. Now seeing the economy collapsing these idiots are absconding. This is the sorry state of affairs in mango republic.

On one hand RBi still is giving money to banks at 7% (repo) and paying banks at 12% ( latest cash management auction). It looks outright idiotic. The system is screaming to raise interest rates. To satisfy some selfish crooks RBI is not raising the rates.

Government and RBI joined hands to destroy the country. The main opposition party inspite of knowing all this mismanagement keeping mum because they know the impending collapse will help their cause.

Today WPI increases by 1% points than last month and Rupee closes at lowest point. Government and RBI has come up with some panic measures which will be brused aside by markets on Friday. Mangoman again reiterating his view.

RAISE INTEREST RATES BY 2 PERCENTAGE. SCREW ALL THE REAL ESTATE BROKERS. THE COUNTRY WILL BE OKAY. DO YOU HAVE IT IN YOU RBI?

Comedy By Indian Government

Government it seems is resorting to talk up the markets. The idiotic approach which caused the huge problems to the country refuses to go away.

Government few days back stopped releasing GDP and Inflation data duirng market hours fearing market crash. The reason put forward was that the government want to avoid volatility in stock markets. But clever people understood what government is trying to do. The government went on to release feel good news ( or the news they think is good) during trading hours so that markets go up. Markets did not care a s*** and fallen hugely for the past few days.

Now again Monday government will announce some measures during market hours it seems. I love to see it to be bombed.

Another news is that sebi crackdown on bear cartels.  http://www.business-standard.com/article/markets/bear-cartels-under-sebi-scanner-for-battering-bluechip-stocks-113081100230_1.html It is ROFL comedy.  With the economy in deep shit, why do bear cartels sell your stocks? what are your MF's doing? Will you investigate that also..

Government is either trying to cheat public or barking at the wrong tree

What India will do next?

3 billion dollars foreign exchange is lost within a week from RBI's kitty. The problem is very serious. This is evident from the fact that the RBI is trying to drain the liquidity from the system. The 22000 Cr auction is necessitated because of this fear.  Now also all is not lost. Raise the Repo and CRR by 2% each. Everything would be solved.

However, I think the government next course of action would be:

1. Banning short selling in currency
2. Banning short selling in equities
3. Can snatch the dollars from traveller coming back from abraod at airport itself :)
4. Passing a law to make car purchase compulsory for all Indians ( Aadhaar card would be used for this). Government want poor car companies also to survive.
5. Another scheme for compulsory going for housing loans and apartments is under purview of Chidambaram.

Kangaroo Court Act by Indian Government

One could not stop laughing after seeing the news which says that the government puts onus on settlement disputes on NSEL Promoter.

Robert Vadra is right in saying that it is a banana republic and we all are mango people. How the NSEL promoter is responsible for settlments.  Settlement is the responsibility of NSEL.  I am not supporting Jignesh Shah. But the point is the manner in which government spoke is interesting. They act as if they are conducting a kangaroo court wherein they settle issues. Whatever may be the issue in NSEL there should be set procedures for any eventualities. What government can do is to strengthen the processes and reduce unnecessary speculations.

If the government itself is speculating hugely and actively encourage speculation for past 10 years then who can save the country. Government lost the moral authority to preach, so that they resort to kangaroo court methodologies.

It's celebration time folks

The country which is for the real estate by the real estate to the real estate is busting now.  RBI is helpless.  The corporate mafia who misguided RBI is speechless. It seems the Real Estate brokers are still not aware what is going to hit them. They will know shortly.

Corporate mafia is using Infosys Kris Gopalakrishnan as a front to push their cheap and dirty trick of asking for a rate cut. Kris Gopalakrishnan is a soft guy fell prey to that and where ever he goes he asks for 100 basis point repo cut and 75 basis point of CRR cut. I heard that he inadvertently tells this during his sleep also. My question is since IT or Infosys has no business about rate cut it is better for him to keep quiet as this shows him in poor light.

Rupee crashes today and Nifty index broke down today. Anytime we can see a down circuit in Indian share markets.

Now Subbarao has one last opportunity to restore his credibility. Raise repo rate and CRR by 100 basis points each. In the process you will kill two birds. Rupee will appreciate and real estate will depreciate. Economical collapse will be avoided. Will he do it?

Mango Prediction - 2013

After Anna Hazare episode, middle class will come to street to protest against government about the erosion in their real estate valuations.This would be Indian Middle Class next agitation.

THIS IS GOING TO HAPPEN. ANY TAKERS?

For Suresh from Mango

Suresh asked me to write the future events ( 6 months to 1 year) in the backdrop of government losing all the ammunition.

This is very difficult to predict especially what would happen with 6 to 12 months.  My long term view is that the Indian Economy screwed to the point of no return and it is impossible to repair the economy without a crash. Let us try to predict.

1.  Rupee will nosedive further. It is possible that we will see 65 Rupees per dollar easily.

2. The effect of Rupee will automatically cause Repo and CRR to go up.

3. Share markets nifty and sensex will crash ( 4500-5000) to (12000-14000) levels respectively.

4. After Anna Hazare, middle class will come to road to protest against the real estate crash. Middle class who invested in speculative real estate will face the heat.

5. Banking system will be hit very badly. NPA will go up hugely.

Since this is something which would happen first time in India ( the sheer size), it would be scary. Be in cash.

Thank you Dr.Subbarao

Even though we criticize Dr.Subbarao for his actions as RBI governor we have no doubt that he is good at heart. He wants to help but it is unfortunate that he is not able to withstand huge pressure puts up by the
corrupt political bosses, mafia corporates, pimp media and brokers.

However it is confirmed that he is not get extension for another period as confirmed by Mr.P Chidambaram Minister for share market and real estate welfare also holding additional charge of finance ministry. As suggested by Mangoman few weeks back, it is good that Subbarao is moving on. Let us analyse few things now.

1.  Already finance ministry started looking for scapegoats to put blame on for the coming economic debacle. Subbarao cannot escape and there are high chances that he will be squarely blamed for the mis management. Better jump out of sinking ship as soon as possible.

2. I like the time bomb he planted in the RBI in the past 2 weeks. That is class act and I think he knew that the government days are numbered and so it is time to show some spine. By planting the time bomb ( reducing repo limit for banks), he made sure automatically interest rates would go up whether govt likes or not.

The effects of the time bomb will show itself in few days time. I mean it.

This is called Checkmate Mr. P. Chidambaram

Today a strange thing happened in Indian Financial Markets. After RBI's monetary policy, along with equity markets Rupee also crashed. This is ironic and hope will be an eye opener for RBI and finance ministry which manipulates RBI from the background. It is sad that RBI becomes a puppet and now humiliated in front of the whole world.

This unfortunately happened after RBI's supposed monetary tightening in the form of Reduction in Repo limit last week. When RBI announced the measures the Rupee was trading at around 59.60. Now today it is decreased and at 60.41. From seemingly unlimited Repo limit to now 37000 Crores RBI has reduced the liquidity in 2 tranches. Even yesterday RBI MSF window saw huge drawing from Banks at 11% and odd. Even with all these, Rupee depreciated today which is very bad for the credibility of the RBI.

RBI today made a mistake of talking in government's voice. Mr. P. Chidambaram the minister for real estate and share market welfare who is also in-charge of finance ministry used to tell every week that the interest rate will be cut very soon and often tells that whatever RBI is doing to strengthen Rupee is temporary. That is for political reasons. He knew that Indian Economy is headed for collapse.  RBI need not have spoken in that language. IT IS CREDIBILITY CRISIS AT RBI.

Now if RBI went back on Repo limit measures it would be considered as easing and  if that happens the market will punish Rupee. Otherwise also now the interest rate is clearly hardening. It is time for RBI to raise Repo rate and CRR to 1 percentage each. The failure of IIB ( inflation bonds) should be a eye opener for RBI.

Now if government still wants to help and save brokers, then it is running the risk on huge economic collapse. Better late than never.

What a man?

SBI chairman goes ballistic against RBI about the liquidity situation. He said that RBI could have raised interest rates instead of choking liquidity. Now let us dissect this idiotic statement.

1. First SBI chairman says SBI liquidity position is comfortable.
2. Importantly the same person says until last week, a rate cut is needed. In fact he shouted more than the corporate mafia shamelessly. But now why this U-turn?

I have already written about this comedy banker few months back. Search in this blog somewhere about his chamchagiri to the finance minister.

In my opinion his influence on RBI as a largest banking group of the country is huge and he should also be fixed responsible in the coming GREAT INDIAN ECONOMIC COLLAPSE.

Mangoman is very happy

Signs are clear.

Signals are obvious.

Oriental Bank blinked first. They have raised interest rates first. All the other banks will follow suit. I am very confident now that real estate crash will become reality.

RBI's hands are forced to act and tightening is a reality now.

I love to see speculator's Ass whipped in near future

There is a pattern :)

When Narendra Modi goes ballistic RBI acts for the first time on Repo Limits.When CNN-IBN says congress is screwed due to inflation, RBI acts for the second time in Repo Limits and CRR.
http://capitalmind.in/2013/07/rbi-goes-ballistic-cuts-repo-limits-by-half-removes-crr-flexibility/
Is RBI is a political Institution? This is my first question.


We are talking about this farce of allowing banks to do easy business for quite some time now. It is ironic that RBI has found out this all of a suddenly and started tightening. I am not sure whether this will work or not? Given the fact that banks Repo borrowing touched as low as 40000 Crores in recent days. But this we need to wait and see.


Another worrying factor is that whenever RBI wants to rein  in the liquidity, it must focus on the language it uses. If they give an indication that these measures are temporary in nature, then the markets will not care a shit about the measures as they would think these measures are anyway temporary. So the anticipated effects of liquidity wont happen. RBI should ask the bloody corrupt politicians not to open their ugly mouth about these measures. If the politicians including the Prime Minister says these measures are temporary, then why bond market or forex market should react to these measures?

Finally these half hearted measures are laughable. RBI should directly raise the Repo if it is serious. Also it should come out clearly saying that it is not about curbing forex speculation. It is about curbing liquidity. Otherwise the comedy farce will continue.

www.mangoman2012.blogspot.in

Consolidating.....

Car sales continue to tumble...
Broader market are getting a beating even though the index is managed.....
The FII are continuously selling in bond market AND cash selling in share markets.....
The interest rate is hardening....
The rate cut chorus is vanished and brokers and corporate mafia are begging not to increase rate if not cut.....
currency is adamant at 59.50 inspite of RBI dancing...(cabaret dance)...RBI's new regulation are very interesting and hilarious so to speak....
The gold smuggling increased big time and government is not at all bothered because they want to see the printed CAD to be less and dont care a shit about actual savings rate collapsing.....
Inflation is not at all reducing.....

WHAT IS HAPPENING IN THE COUNTRY?

Gold import myth busted

http://timesofindia.indiatimes.com/business/india-business/80-dip-in-gold-imports-linked-to-rampant-smuggling/articleshow/21198956.cms?messageid=17111234&intenttarget=no&r=1374379115050

The article says it clearly...

And just see the sheer number of people crying below it in the comments section in the article..that says the story of middle class which is being crushed by RBI and Government from both sides...

God saves India.

Extension for Subbarao????

some news about extension!!!!
http://www.firstpost.com/economy/no-job-extension-offer-yet-says-rbi-chief-subbarao-972127.html

It is better to go Mr.Subbarao. If you cannot withstand government pressure what is the point in getting extension and staying in the hot seat  only to see the economy collapsing day by day?

If the collapse comes after few months atleast you can say ' it was ok until I was there..now they are not able to save it' . So what say?

Chidambaram's slaves in RBI needs basic economic training

RBI panicked and rejected the bids for both sale & purchase of auctions in this week. When it signals monetary tightening for rates, it should have known that bond yields will increase. This is basic economics. I think they would have got some message from FM and FM would have got pressure from Indian Corporate Mafia.

Finally I think these jokers will see the downgrade very soon. I hope that happens as early as next month. Basic economic says you raise interest rates to save domestic currency.  But RBI, India's celebrated institution which is reduced to a sorry joker off late, is trying a novel method even Ben Bernanke would be envy. If RBI ploy had worked then it is lesson for all the central bankers to learn.

Already RBI officials made all the banks to close their short positions on Rupee/Dollar trade. Again when they say our aim to curb speculation on Rupee on RBI money, no fool will believe this. They should openly tell that we need to raise rates to save rupees. Otherwise allow Rupee to depreciate. dont be a comedy piece. People still look to RBI to save the country.

RBI thoroughly humiliated

What a mess RBI has created?

Yesterday they wanted to drain the liquidity. Today they increase the liquidity. They just want to keep the nifty index up. Even they donot care about Rupee. Rupee did not move an inch when RBI announced half hearted measures. Nifty moved  a lot and poised to move a lot more tomorrow.

Dont be surprised to see a ban on short selling in Indian Share Markets until the next general elections. Government on right path to take this country to destruction. The way they do it  is amazing. Even opposition is not questioning all this. One feel very sad about RBI and so far nobody has stooped to this level as Subbarao has done.

Whether all the banks ganged up togeather  ( with governments tacit support) or RBI's ineffectiveness! we dont know. But country is screwed. Wait and see

Whom we are trying to fool?

Now RBI and Government has come up with a smart act to hoodwink mangoman of the banana republic. http://www.anirudhsethireport.com/india-in-depth-time-to-treat-savers-fairly/#more-138629 savers are being royally screwed.

Idiot mangomen without knowing what is hitting them preparing excel sheets which shows the appreciation of his house property ( 25% per year :)  When the tide goes back we will see who are all swimming naked. The mangoman are royally raped by the government and RBI yet again.

Without shame and no fear of getting arrest for hoodwinking people, Chidambaram yet again asks people not to buy gold. The opposition is not doing anything either. Eventhough Modi raised his pitch yesterday but it is not enough still.

RBI and Government are thinking they have done something. It may help for a day or two. But our problems are difficult to address unless we hit the right spots. Gold import has reduced only for this month and expected to raise again as we dont have any other saving instrument in this negative interest rate regime. Without touching Repo rate government is also tellng their intent of raping savers continnously.

Car sales tumbling
Real estate deals are not coming
IIP is in minus
Inflation is going up

Where are we going?

Chamcha singh and Rangarajan are giving bad hope. It is better Raghurajan can resign to save his reputation

Time for Chidambaram to come on TV

Before going to today's bashing, please read the blog post of Mr.Deepak here. According to him, RBI has raised he interest rates.http://capitalmind.in/2013/07/rbi-effectively-hikes-rates-2-sets-limits-on-repo-usage/

But now do you know whether banks are continuously borrowing more than the 75000 Cr set by the RBI? I mean how it will hurt the banks unless otherwise they are having to use MSF on daily basis. What is the daily borrowings whether it is crossing 75000 Crs consistently?

So far these bankers were doing easy money business. Get some cheap money from RBI which is forced by corrupt UPA government and lend them to real estate brokers. When the repayment term comes they replan the loan repayment until idiot mangoman takes these loan as housing loan or whatever bull shit they call us. Those days are easy money are over. Now it is time to Indian bankers to do business as per the book. Identify the business analyse the margin and then lend. Since now most of the Indian business man turned brokers and not ready to accept a margin of anything less than 40% it would be a tough ask. Otherwise what can define that almost all top business house in India dabble in real estate?

Ok. Now what?  Since interest rates are going to go up it would be very interesting. Fraudsters who are ready to sell even their wives for a rate cut are going to get crushed in this financial sunami unless they understand what is real business is.

It is sad that guys like businesses of Ratan Tata who never comes on broker channels to beg for a rate cut, is not doing that good. His tata steel and tata motors are not doing good. I feel for it. But that is what life it.

Another interesting aspect I have observed yesterday wherein WPI inflation figures are released during market hours as it is perceived to be good news for market. Is it not amounting to fraud in government for they said they are going to release all these ( gdp, inflation and iip) after market hours?

Anyway Chidambaram will come on TV and will tell that what RBI has done is just a eye wash or hog wash. It is just a ploy to shore up the currency and bankers need not worry that the government and RBI will find some innovative ways to give money to real estate brokers supported by banks. Am I right?

Down and out.....

Down and out is not referring the rigged up Indian Markets even though Mangoman love to see crash in the Indian markets.

The vegetable prices gone through roof. The budget of ordinary family is affected  http://www.business-standard.com/article/markets/vegetables-fruit-burn-a-hole-in-the-pocket-as-prices-go-through-the-roof-113070600586_1.html  . Still government is supporting Real Estate brokers community by not increasing the rates. Sadly they are looking ways to cut rates further. RBI is also singing the tune of government which is very bad for the country.

I remember RBI Guv. Subbarao said he will have to raise rates if Rupee falls further. That was when Rupee was trading at 55-56. After that Rupee has depreciated more than 10%. I am wondering what constitutes a fall in Subbarao's dictionary?  He is one of the biggest disappointment. He should raise to the occasion.

Either way when Monday market opens RBI has a fight in the hand. I love to see Rupee touching new lows that day.  RBI dollars reserves are going down fast as per the latest reports.As I have been maintaining RBI can save face if they do what they have to do on their own instead of being forced by the basic laws of economics.

Monday morning without no doubt chamcha singh ( Montek) will talk about bottoming out. What a cruel guy he is?Most of the vegetables are costing more than 100 Rs per Kg. But when I looked at the inflation barometer our RBI and government follows it says less than 4%. What a cheating?

But with all this, mangoman has to support the Food Security Bill. Yes. For country of this size, subsidies are important and I donot believe in the paid economists ( swaminathan aiyar and other BJP supporting analysts) view about FSB. We have larger issues to address than the subsidy which helps vast majority of the people. Share market is not the only place where people invest. Less than 1 or 2 percent invested in Share markets. If India pricks the Real Estate bubble it will help many crores of people to come out of the clutches of Inflation. But BJP is careful about not talking about that. Why there was no agitation planned by BJP about Real Estate Lobby? why no agitation about inflation? So opposing FSB is not something Mangoman will support.But Mangoman also wants congress to lose badly in the coming election.

US 10 year treasury at 2.704

Will it cause a crash in Indian share markets. Let us see what can happen Monday.

9.15 AM  Indian Markets Tank by 2-3%. Because already Brazil markets tanked by 3% until now. The dollar index is at 84.70 and US Bond mentioned in title is at 2.706. It makes sense to FII to withdraw their bonds.

10.00 AM  Real Estate and Share Markets Welfare Minister Chidambaram will come on TV to convince traders and FII.

10.30 AM  Arvind mayaram and Raghuram rajan willl come on TV and put the blame on US currency.

11.00 AM chamcha singh will come and predict the bottoming out of Indian economical slump for 100000000th time.

11.30 AM Rangarajan will talk in CNBC and will gently nudge RBI.

Where is Chidambaram?

Mangomen of Banana Republic were shocked today.

Inspite of more than 1% fall in indices, the 'Real Estate and Share Market Welfare' minister P. Chidambaram did not come on TV to assuage investors and traders. It is to be worth noted that in addition to 'Real Estate and Share Market Welfare' ministry Mr.Chidambaram is also incharge of Ministry of Finance.

What is RBI's mandate?

According to Indian Finance Minister RBI mandate is

1.  Allowing the inflation to flare up to more than 10% for continuous 5 years thus breaking ordinary citizen's backbone

2. Reducing rates to benefit corporate mafia.

3. Appeasing real estate sector by
   
       a) By reducing rates every month
       b) allowing them to raise money from foreign countries and speculate
       c)  turning a blind eye into their black money transactions

4. Printing money whenever government wants to spend

5. Asking traders to close their forex positions during currency volatility (most hilarious of all)

6.Should help share market nifty index and sensex at elevated levels

7. Not to hurt foreign investors

8. Allowing all public and private sector banks to bubble up the real estate sector by not following the norms of auditing in housing loans...now these housing loans monsters are threatening the banking sector stability


What else minister??

Better late than never

Finance Minister at it again. He intimidated RBI to cut rates by telling that 'RBI should understand their mandate in the broader sense'. What a irresponsible statement this has been from the Finance Minister of a country which is struggling to avoid a financial sunami of unimaginable proportions.

Please also read this....https://www.niticentral.com/2013/07/01/manmohan-singh-is-an-economic-disaster-in-charge-of-mounting-crisis-97761.html

Shamelessly the UPA government is trying to buy time until the elections by threatening ( almost) RBI to cut the rates. RBI is obliging so far. That is altogether another issue.

I was shocked to read that we continue to pay huge to our oil imports. Even though they oil commodity prices cooled off. An article in DNA says  http://www.dnaindia.com/money/1855943/report-5-years-after-peak-145-oil-india-pays-more-today Rupee has depreciated more than 51% than the time when oil was trading at 145 per barrel. That means we may more than what we were paying to oil few years back.

But strangely we attack gold. That is soft target and inspite of clearly knowing that people buy gold to hedge against killer inflation which caused by RBI and Government, these so called intelligents blaming people.  The opposition is not raising any issue over this gross mis management of economy which baffles me.

Better late than never. A life of few real estate agents is not important than a country. We have a raise interest rates by atleast 2 percentage and depreciate Rupee atleast upto 70 per dollar. Unless we do this, we all will go to dust.

If we dont do it on our own we will be forced to take these measures anyway.

Titbits:

2500 crores recovered in mumbai most probably belongs to some powerful person and it is anybody's guess we will never come to know who is behind this? This case will be closed in due course and we mango idiots will shamelessly live in this country......

car sales collapsing again in June 2013

Needless to say, people are feeling the pinch.

Car sales nosedived for 8th (7th ?) month in a row.  But the 'ready to sell wife' for a rate cut lobby is surprisingly quiet.

May be the will become active around July 30.  Let us see

Rupee nosedived / Desperate RBI continue supporting Real Estate Brokers

Rupee crashed to all time low of 60.72 at the end of the day today.  Patriotic Indians should celebrate the moment as both Government and RBI are busy screwing up the economy day by day. Instead of saving the Rupee the RBI is increasing the provision limit for housing loans and also allowing real estate brokers to mobilize money from foreign countries.

I see the act of RBI from 2 perspectives.

1. RBI is desperate and being pushed by FM, so giving generous freebies to RE brokers.

2. To get in the foreign exchange, RBI is opening the RE sector, so that brokers can mobilize funds from foreign countries as other businesses in India lost the ability to do business within reasonable margins. Real estate brokers being brokers in India, think that they can continue doing business at current 60-80% margin even by mobilizing money from foreign countries. In a way I am happy as this may be the final nail in the coffin.

Meanwhile markets continue to crash. Nifty crashing below 5600. Let us wait and see the nifty below 5000 within couple of months.

A dark comedy called WPI ( The inflation barometer of India)

They say RBI is measuring Inflation based on WPI and WPI is now less than 5% ( 4%??). But mangomen of the country when they go to market to buy vegetables they find potato at 50 and tomato at 60 and onion at around 100 Rs. Interestinly the mangomen of this banana republic stopped complaining. Another country which is comparable with this banana republic which went inthe same path is in shambles now ( Read Brazil).

I really doubt the logic of RBI following WPI. If they still say we follow WPI then better the can say that we won't see inflation at all for rate decisions. They can just go on and print money and give it to bankers and corporates.

The rise of Yes Bank is due to RBI money printing in my opinion. They opened newly in metros and in short time they are now one of the leading banks in private banking space. Simply they get free money from the Indian banking system because of money printing ways of RBI and multiplied the money and now fighting within themselves for the same money :)

Great India.

What is called reform?

Now since the market starting to fall people are panicking. Who all are panicking?

1. Corrupt politicians
2. Cheat corporate
3. Mafia Real Estate
4. Broker Media
5. Finally the common man who is conned/induced into investment in Real Estate by the above 4

In addition to this list, the so called financial analysts also panicking and started talking that new reforms will help stopping the fall. But in my mango opinion nothing can stop the upcoming catastrophe. Indian Government and its puppet RBI has exhausted all their options and are watching the crash of Rupee helplessly last week.

If a finance minister come on Tv to assuage investor once in a year it is normal and thereby he can command come respect in the market place. But our finance minister come on TV every week whenever there is a fall of 20 points in the index. This is comical. Markets stopped responding to his gimmicks. Last week Raghuram Rajan was given the tough task of convincing markets. Poor Man. What can he do?

Now coming back to reform stuff, I do not see any need for reform. What is needed in couple of percentage points of rise in Interest rates. A small hole in Real Estate Bubble. Some tightening of income tax rules and compliance. This is enough

Some time the so-called experts will over think and over do things and make seemingly simple things complex. That is what happening now.

Rupee / FII / Bond

Simply put now RBI is in dilemma and effectively check mated. If you had observed carefully the rate cut lobby is shutting all its holes in the body last week after the spectacular fall of Rupee. Now Subbarao will give a punch in the face for whoever asks for a rate. RBI is almost knocked out by the vicious cycle of bond returns and Repo rate.

If they reduce repo rate, FII who are already making loss will make further loss, and hence will go out of India.

If they increase repo rate, it appears atleast 75% of top corporate honcho will go on indefinite strike. ( have you ever seen Tata begs for rate cut? I did not. That is the difference between real business man and reel business man

RBI did not cut rates because they cannot cut now.

Nifty Index View

After Bernanke speech many would have observed huge FII selling in bonds and stocks. Stock selling started late but catching up fast now. Friday I saw huge sell figure from FII desk. Let us hope this continues. I am looking for some cheap puts and I think we can easily see 4500 - 4800 in nifty very soon. I mean as early as this year end.

Real Estate Effect

RBI may raise rate or not. Liquidity will dry and Real Estate sharks will run for cover. The tide is going to retreat and we will all see who is swimming naked. That will be interesting. Already I see many ' to let ' boards in many business establishments in Bangalore. Let us wait for the cleansing act and hope for a good beginning after the upcoming crash

Indian Inc disappointed :)

By making their displeasure known to everybody, the masks of so called corporates are off. Their real face is coming out. They simply don't care about inflation or aam aadmi. They are bothered about their ill gotten wealth.

RBI is also not a holy cow here. The issue here is that if you reduce rates then due to reduced bond yields foreign investors will sell their bond investments. So that this tamasha.

check mate.

Game is getting interesting now.

Dear Mr.Subbarao

I know this week is very taxing for you.I know you are coaxed, cajoled, blackmailed,praised, pressurized for a rate cut this week. Come Monday afternoon you will be relieved for another month or so.

Whatever happens you will be remembered as a weak RBI governor who could not control inflation and who could not revive growth and who could not stop Rupee from falling.

You are good but easily bulldozzed by blood sucking corporates, corrupt government and pimp media.

I feel sorry for you.

Any shame left Mr.Finance Minister?

Please go through the below article. This talks about ( actually justifying govt move) the pricing of the FPO of government issues. We need not go into the nuances of the issue. What I am trying to talk here is about the government idiotic disinvestment policy.

http://www.business-standard.com/article/markets/analysis-is-the-government-selling-mmtc-for-free-113061300173_1.html

It is a pattern that whenever government announces an FPO, the stock is hammered in the markets. This shows government and company is in poor light. One tends to think that the market participants ( Foreign investors or brokers??) trying to take the price down before the FPO and get the stocks at throwaway price.  Should government budge to this tactics? This goes on to show that either the shares are already trading at huge premium or government is losing huge sums of money. Why we need to sell these shares at throwaway prices?

The latest share which is being affected by all these is IOC. It is one of the blue chip company and if I remember correct we were discussing about 400 Rs or more for IOC disinvestment. Even government postponed disinvestment because it felt the then price of 350 is less for IOC. But look at now. IOC is struggling at 250 and government shamelessly moving the file for disinvestment. I guess we can get IOC at 200 Rs through FPO process. As a retail investor we will get 20 shares and crores worth share will be bought by FII at throwaway price.

Now, I am seriously thinking Supreme Court should interfere and stop this nonsence. Any takers?

I expect comments pls guys.

Real Economy of Real Estate Economy is in Real trouble

Due to past 2 days Rupee movements 'ready to sell wife for rate cut' lobby is upset it seems. Donot worry. still you can extract rate cut from this banana republic.

Continue trying.

Easing farce

Do we still have some rules which needs easing? You must be joking. Mangoman's reaction for govt plans to attract soverign funds

Market is not panicking...Financial ministry is......

Rupee has nosedived into 58.15 levels during close today.

I was so so happy to see the Rupee tumbling. In a way I feel sad for wanting our Rupee to crash. But on the other hand, given the idiotic way this country is being run, I would really like to have some sort of catastrophe so that people understand the ground reality the mend their ways.

Inspite of all this one broker media has come up with a paid article and still the stupids want rate cut from RBI.  Poor RBI. They are caught between the devil and the deep sea.Now RBI with its dwindling dollar reserves bite the bullet? I presume not. But strange are the ways Indian system works. RBI may be forced into act against its wish.

Actually devil inside me tells that RBI should cut the rates so that the inflation flares up again and I wish the crisis should accelerate further so that downgrade comes from ratings agency.

Let us see what happens next..

I think in the immediate future ( 1 -3 days) RBI will come up some desperate measures to stem the fall. But having exhausted all its options it would be interesting to see what RBI will do.

Funnily finance secretary said that market panic is not warranted. As I see market is not panicked but government is. Government it seems runs to RBI and last heard there was hectic discussions. RBI is being cajoled into to do some nasty act. I know anyways desperate times needs desperate measures.

But the real estate economy for the real estate people by the real estate people is doomed to fail

FII's step up sales in bond market

In the previous post, we see that this week will see hectic lobbying by blood sucking corporates and irresponsible bankers to force RBI to cut interest rates.

One interesting analysis I did over the weekend says that further reduction in rates will create a hungama in Indian bond market. The Rupee depreciation along with reduced rates are causing FII's pull out money and it is partly reflecting in equity markets also.

Last week FII have pulled out more than 7000 crores. It is good news for me.

RBI cannot cut rates that easily now.

CHECK MATE MATE.

lobbying week is here

We all know what is lobbying is.

By far, the largest lobbying group I have seen in India is the group of corporate and bank chiefs with tacit or open support from Government of India. The poor victim is Reserve Bank of India. There is a saying in Tamil which goes on like this..Apply.sama, bedha, thana and thanda methods to achieve something. This means do whatever you can to achieve your objective.

This huge lobby group pressurizes RBI by using all these methods to extract favorable monetary policy from Poor RBI who forgets their main mandate. Now next week RBI is expected to come up with their monetary policy for next few weeks. Lobby groups such as 'ready to sell wives for rate cut'  corporates and 'win elections at any cost' politicians are ready to put pressure on RBI governor.

Shameless banker SBI Pratib already started the main song by saying RBI should focus on growth. Why on earth RBI should focus on growth. RBI should not focus on growth. RBI should focus on inflation and currency stability.

However it is expected some emotional blackmailing statements from Chidambaram later this week and also various kind of statements from corporates. Interesting week.

My take is Subbarao will wilt under pressure. Let us see

A intelligent called Swaminathan S Anklesaria Aiyar

Today I read one of the most idiotic article in the main stream media. The credit goes to renowned economic writer mentioned in the title of this article.

He suggested/supported to sell all the buffer stock kept in government godowns.  In fact he suggested to export this food stock. What is comical is this...

He said India needs 32 million tonnes every year as on July 1 in stocks. Even with proposed food security bill India may not need more than 42 million tonnes. But currently India has stock about 76 million tonnes. So he suggesting to export atleast around 25 million tonnes. What is intriguing is that he said by selling 25 million tonnes we will get around 10 billion US$ and he thinks it will bridge the current account deficit.

Dear sir, our current account deficit is in the tune of 60 - 70 billion$ and this 10 billion$ is peanuts and will go into the drain in a jiffy. But the food stock if used properly or given to people can last for another year. You may have born in a upper middle class brahmin family and may not know what is food security is....

However, I never read this guy talking sense in any of his article. He never advised government to increase interest rate so that all the rotten idiots in the indian crony capitalist system comes to ground. Never. he never did that. He always supported government's idiotic moves. Gives reasons for them. Give justification for governments anti-people move.

Dear sir,,problem lies in Interest rates....

Raise interest rates by atleast 2%. This will solve all our problems. Then we need not undergo the painful process of reading your half baked,self fulfilling articles.

Real Estate Regulatory Bill in Monsoon Season

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what a joke?

Holy cow Narayanamurthy

For long corporate India and media mafia praise NR.Narayanamurthy for corporate ethics standards and what not.

Murthy paid back by bringing his son into the company yesterday. One side effect is that K.V.Kamath becomes laughing stock now. But as you know, he became rick and famous only because US money printing and the boom period that followed.

Coming back to NRN's ploy, it is Ok. We Indians donot have rights to call anybody's bluff because we all have skeletons in our cup boards. If you had to arrest somebody for their crimes, we all should get arrested one way or other.

See MS.Dhoni is in newspapers today for all wrong reasons

Interesting times ahead

As usual car sales crashed by 15% this month also.

Govt is desperate to stop gold exports. The idiots who are deciding things in India are not still not understanding or acting too smart. The real reason is interest rate. We NEED TO RAISE INTEREST RATE BY ATLEAST 2-3 %. This will help reducing gold imports.Now govt it seems is openly encouraging gold smuggling by increasing import duty etc. They are not ready to  increase rate and thus deciding to continue raping of common man who trusts our banking system.

'Ready to sell wife for a rate cut' lobby will be active from this week as RBI is going to meet shortly in 2 weeks to decide monetary policy. Poor Subbarao is going to pay for politicians and corporates greed.

GDP will see contraction very soon

Many learning economists are amused at 5% GDP figures shown by government.

In my opinion this is jacked up figure and in reality we are already contracting. However within a year (before 2014) we will see official figures of GDP contraction.

Brazil which has gone in the same route is paying for its sins now and it is matter of time for us.

Subbarao somehow understood this and made right noises yesterday. But it is too little too late. Subbarao can pray whatever collapse has to happen after September once he retires.  But nobody can save this crazy country.

What if QE stopped?

QE (Quantitative Easing) by US federal government is going to stop.

The very thought is giving shivers to Indian finance minister Mr.P.Chidambaram. With a mere 1-2% fall in Indian markets Mr.Chidambaram is coming on TV and almost begging to foreign investors to stay invested.
He very well know that money has no heart. Whether you like it or not we are staring at a huge crash. The people who talk about and worry about 5% GDP will see the contraction of our GDP within couple of years. Congress has to pay for its sins. Knowing the consequences now Indian Finance minister is working overtime to save the share markets. His single point agenda is to save the share market and nothing else.

Already markets are artificially jacked up by FII money which comes into India by spill over effect from Europe, Japan and US QE. If US decides to stop and the bond yields increase in US, then the money which flowed into India will go back to US in no time.This will cause a huge crash in Indian share markets.

Real Estate is un-affordable for end user
Drinking water scarcity increasing
Job opportunities are dwindling
Banks are making losses
Farmers are struggling
Power generation , the less said it is better

Chidambaram is not interested in solving the above mentioned issues. He wants to save share markets. Coming on TV to assure speculators. Good for free market.

But dont forget. This country is going to pay for its sins.