Tuesday, April 2, 2013

Car sales continues to rock :)

Latest good news

1. March car sales tumbling
2. Manufacturing PMI coming down fast
3. Core sector growth goes into negative
4. Air travel is reducing.

All  4 items I mentioned above are, as I said before is symptoms of the start of a terrible down trend. Without any evidence corrupt government officials, corporate mafia and media brokers are talking about bottoming out etc... It is nothing but cheating. We need to see some evidence like higher low etc to talk about bottoming out. 

Media brokers are telling (especially Times of India) that car sales are tumbling because of high interest rates. I have one question for this broker. What was the lowest interest rate offered for car loan in India and when? think about it.

I propose some ideas to government:

1.  Government can go for a house to house survey and if any family without a car is found, they can be forcibly sign for a car loan. If they dont agree, they can be arrested.

2.  The above idea can be tried for 2nd car also. Who cares about traffic? We need to feed the car companies right? Who cares about farmers committing suicide?


  1. Then signs are certainl worrying.As someone with subtstantial cash deposits in the bank,I am getting worried whether we will have a Cyprus moment in the not too distant future.I noticed that you are from the Banking industry.What are the possibilities ofa ban run in India.How far are we away from such a situation?Any insights will be much appreciated.

  2. I meant "Bank Run"

  3. so far such a scenario is not anticipated. But these are difficult times. India has never been in such situations before and I sincerely feel we dont have the discipline to wade through this.

    That worries me a lot. We need to see the triggers. If you keep your money in private banks, move that first to public sector banks such as SBI etc.

  4. I agree that we do not have the political will to see through such a crisis.The next trigger for the crisis could come from Asia.Shadow banking in China is a real issue.A china meltdown is areal possibility in 2014.With gold falling and property prices at astronomical level there really is not a safe place to park the money.

  5. Kumar, you are spot on.

    Crisis of sort has indeed come from Asia. But funnily it is Japan which is trying to expand the balance sheet which causes money to flow from all EMs to Japan.

    I am not sure about china meltdown. That cannot happen. They can manage their economy.

    The real trouble is for India.