tag:blogger.com,1999:blog-22586038828557951952024-02-20T17:14:39.045+05:30Mangoman MusingsA ordinary citizen's view about Indian economy, politics, finance and share markets
Readers comments are most welcomeMangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.comBlogger185125tag:blogger.com,1999:blog-2258603882855795195.post-17317034673366337822014-05-11T14:34:00.001+05:302014-05-11T14:34:49.246+05:30Mangoman is back<div dir="ltr" style="text-align: left;" trbidi="on">
Hi Guys,<br />
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Sorry I was away for quite a few months.<br />
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Now since NaMo victory is a foregone conclusion let us write a detailed article about 'mango' predictions next week.<br />
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Until then Mango will be trying some option strategies to take advantage in Indian Stock markets.</div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com4tag:blogger.com,1999:blog-2258603882855795195.post-62513143901046946512013-12-17T05:22:00.001+05:302013-12-17T05:22:10.419+05:30Stupid or cheat?<div dir="ltr" style="text-align: left;" trbidi="on">
Now we are all set of mid quarter monetary policy from RBI.<br />
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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.<br />
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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?<br />
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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. <u><b>We need 1% hike at one go and that is to be kept for 6 months to solve this problem once for all.</b></u><br />
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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.<br />
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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.<br />
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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?<br />
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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.<br />
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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.<br />
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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?<br />
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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***?<br />
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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?<br />
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Good Reads<br />
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<a href="http://www.firstpost.com/economy/raghuram-is-enabling-govt-to-run-biggest-ponzi-scheme-1289615.html">http://www.firstpost.com/economy/raghuram-is-enabling-govt-to-run-biggest-ponzi-scheme-1289615.html</a><br />
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<a href="http://www.business-standard.com/article/finance/year-2013-unexpected-reversal-of-interest-rate-cycle-113121600661_1.html">http://www.business-standard.com/article/finance/year-2013-unexpected-reversal-of-interest-rate-cycle-113121600661_1.html</a><br />
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<a href="http://www.livemint.com/Opinion/57M0ooklRGW7Z0HAUHXlkK/Indias-latest-political-problem-inflation.html">http://www.livemint.com/Opinion/57M0ooklRGW7Z0HAUHXlkK/Indias-latest-political-problem-inflation.html</a><br />
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Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com8tag:blogger.com,1999:blog-2258603882855795195.post-88321913851438989822013-12-09T07:05:00.001+05:302013-12-09T07:05:42.268+05:30Price rise contributed to defeat - Sonia<div dir="ltr" style="text-align: left;" trbidi="on">
Strangely Sonia admitted inflation contributed to their defeat. What a joke.<br />
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Economic indicator of UPA government is Nifty/Sensex Index. If that is hitting all time highs they why they should bother?<br />
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All along they helped real estate mafia and share market sharks. Consequently it contributed to inflation.<br />
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Now they are victim of their own deeds. Why shedding crocodile tears?<br />
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Picture abi baaki hai<br />
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Where is the great manipulator Chidambaram?<br />
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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?<br />
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Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com0tag:blogger.com,1999:blog-2258603882855795195.post-79512303397270494442013-11-22T04:54:00.000+05:302013-11-22T04:54:25.821+05:30Is it so near??<div dir="ltr" style="text-align: left;" trbidi="on">
<a href="http://www.business-standard.com/article/companies/no-change-again-in-freshers-salary-tcs-113112100901_1.html" rel="nofollow" style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" target="_blank">No change again in freshers' salary: TCS | Business Standard</a><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><span style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;">when mangoman says inflation pinches..you laugh...but when corporates fraud new joinees we keep mum...</span><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><a href="http://www.business-standard.com/article/economy-policy/moily-s-diesel-maths-doesn-t-add-up-113112200048_1.html" rel="nofollow" style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" target="_blank">Moily's diesel maths doesn't add up | Business Standard</a><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><span style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;">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</span><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><a href="http://www.business-standard.com/article/finance/rbi-raises-red-flag-over-realty-exposure-of-banks-113112100736_1.html" rel="nofollow" style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" target="_blank">Red flag over realty exposure of banks | Business Standard</a><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><span style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;">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?</span><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><span style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;">stilll may to come out...</span><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><br />
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Interestingly Maharastra government says they are not going to honour RTI applications about housing societies. Is there law exists in this banana republic?</div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com1tag:blogger.com,1999:blog-2258603882855795195.post-40851943711790388802013-11-15T09:44:00.001+05:302013-11-15T09:44:53.603+05:30Is Raghuram Rajan beginning to disappoint?<div dir="ltr" style="text-align: left;" trbidi="on">
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. <a href="http://www.indianexpress.com/news/volatile-r-punters-will-suffer-huge-losses-warns-finmin/1194225/">The blatant way in which </a> 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 :)<div>
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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.</div>
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The IIP is in -ve for many months now and is being shown positive with lot of data manipulation.</div>
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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.</div>
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These guys are now looking for divine intervention and thus making our life dangerous. I am beginning to lose confidence on Raghuram Rajan also.</div>
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When you can cut MSF rate any time, why not you increase Repo Rate anytime to tame inflation?</div>
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The matter of fact is RGR is not a inflation hawk, he is merely another pawn or puppet for the government.<br /><div>
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Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com1tag:blogger.com,1999:blog-2258603882855795195.post-31791286155800476592013-11-11T20:22:00.001+05:302013-11-11T20:22:32.963+05:30Can Raghuram Rajan make history?<div dir="ltr" style="text-align: left;" trbidi="on">
Can Raghuram Rajan make history? <br />
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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.<br />
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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.<br />
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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.<br />
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Now RGR can make history just by sitting tight? will he?</div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com0tag:blogger.com,1999:blog-2258603882855795195.post-57649723461707730602013-11-06T20:07:00.002+05:302013-11-06T20:07:55.333+05:30Chidambaram wants you to spend <div dir="ltr" style="text-align: left;" trbidi="on">
http://www.business-standard.com/article/economy-policy/chidambaram-wants-you-to-spend-because-he-cannot-113110600623_1.html<br />
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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.<br />
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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.<br />
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Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com0tag:blogger.com,1999:blog-2258603882855795195.post-75747281855418675492013-11-05T20:19:00.000+05:302013-11-05T20:19:16.695+05:30New highs for Equity Indices :)<div dir="ltr" style="text-align: left;" trbidi="on">
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.<br />
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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. <span style="color: #888888; font-family: Times New Roman, Times, FreeSerif, serif;"><span style="background-color: #c0ceca; font-size: 15px; line-height: 21px;"><b>http://www.firstpost.com/investing/hotel-california-sensex-remarkable-belief-of-fiis-in-india-1206073.html</b></span></span><br />
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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.<br />
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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.<br />
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The end game is near as the inflation is uncontrollable now. We are in stagflation. <br />
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The much hyped October festival sales bombed everywhere. Car sales figures slapped at the face of corporates and rulers.<br />
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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.<br />
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HSBC services PMI is -ve.<br />
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IIP data is -ve.<br />
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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.<br />
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Only hope is RBI and Rajan. But will be act before we reach the point of no return?<br />
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Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com0tag:blogger.com,1999:blog-2258603882855795195.post-45650999182926690192013-11-03T11:27:00.001+05:302013-11-05T19:59:12.958+05:30Hotel California<div dir="ltr" style="text-align: left;" trbidi="on">
<a href="http://www.firstpost.com/investing/hotel-california-sensex-remarkable-belief-of-fiis-in-india-1206073.html">http://www.firstpost.com/investing/hotel-california-sensex-remarkable-belief-of-fiis-in-india-1206073.html</a><br />
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Please read the article from the above link which matches with mango's views. Thanks to firstpost.</div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com0tag:blogger.com,1999:blog-2258603882855795195.post-86201809734403929922013-11-01T05:48:00.001+05:302013-11-05T19:59:57.593+05:30Questions to Raghuram Rajan<div dir="ltr" style="text-align: left;" trbidi="on">
<a href="http://www.firstpost.com/economy/why-should-we-tolerate-inflation-10-questions-for-raghuram-rajan-1200701.html">http://www.firstpost.com/economy/why-should-we-tolerate-inflation-10-questions-for-raghuram-rajan-1200701.html</a><br />
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Thanks Firstpost - Nagasundaram<br />
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Now since the honeymoon period is over for Rajan, we want answers from RBI</div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com0tag:blogger.com,1999:blog-2258603882855795195.post-27516573297393320772013-10-30T06:39:00.000+05:302013-10-30T06:39:11.063+05:30Mango's take on October 29<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;">Raghuram Rajan raised the repo rate and signaled that he wants to attack inflation and he also made right noises about...</span><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><span style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;">1. Inflation</span><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><span style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;">2. Real positive return for savers</span><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><span style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;">3. Importance for CPI</span><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><span style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;">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.</span><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><span style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;">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.</span><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><span style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;">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.</span><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><span style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;">these nationalized bank guys were waiting for some banks to declare results so that their number did not look ugly. Interesting.</span><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><span style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;">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...</span><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><br style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;" /><span style="background-color: #eeeee0; color: #5d5d5e; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px;">Let us wait.</span></div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com1tag:blogger.com,1999:blog-2258603882855795195.post-87403746455146188352013-10-08T06:37:00.003+05:302013-10-08T06:37:29.758+05:30What is Raghuram Rajan doing?<div dir="ltr" style="text-align: left;" trbidi="on">
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.<br />
<br />
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.<br />
<br />
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??<br />
<br />
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.<br />
<br />
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.</div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com6tag:blogger.com,1999:blog-2258603882855795195.post-967166224841603642013-09-21T18:23:00.001+05:302013-09-22T10:12:53.571+05:30Welcome Raghuram Rajan<div dir="ltr" style="text-align: left;" trbidi="on">
Raghuram Rajan has come with a bang.<br />
<br />
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.<br />
<br />
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.<br />
<br />
<b><u>Chidambaram</u></b><br />
<br />
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.<br />
<br />
<b><u>MSF and REPO</u></b><br />
<br />
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. <br />
<br />
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<br />
<br />
1. For most of them their loan book is nothing but a sham.<br />
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.<br />
3. That causes them to draw money from Repo daily to the tune of 2 lakh crores until few months.<br />
4. Since Subbu restricted Repo they are using MSF.<br />
5. Instead of being happy to see reduced MSF, they are concerned.<br />
<br />
<b><u>Pratip Chaudhuri</u></b><br />
<br />
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.<br />
<br />
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?<br />
<br />
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? <br />
<br />
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.<br />
<br />
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.<br />
<br />
Pratip Chaudhuri is a typical example of Indian Banking System. The lazy bankers.<br />
<br />
<u><b>Raghuram Rajan</b></u><br />
<br />
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.<br />
<br />
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.</div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com3tag:blogger.com,1999:blog-2258603882855795195.post-59070965265555845552013-09-08T14:41:00.002+05:302013-09-08T14:59:30.815+05:30Raghuram Rajan Effect on Brokocracy <div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: inherit;">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.</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">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.</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">Let me summarise clearly. What is the problem now?</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">1. High Current Account Deficit </span><br />
<span style="font-family: inherit;">2. High Fiscal Deficit</span><br />
<span style="font-family: inherit;">3. Low Rupee Value</span><br />
<span style="font-family: inherit;">4. Corporate Balance Sheet Stress</span><br />
<span style="font-family: inherit;">5. Banks Asset Stress</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">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.</span><br />
<br />
<span style="font-family: inherit;">Before go into further details, please read the following article ht<a href="http://www.thehindubusinessline.com/opinion/the-qe-that-no-one-noticed/article5101290.ece?homepage=true">tp://www.thehindubusinessline.com/opinion/the-qe-that-no-one-noticed/article5101290.ece?homepage=true</a> which says that the <span style="background-color: white; color: #3b3a39; font-size: 14px; line-height: 16px;">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.</span></span><br />
<span style="font-family: inherit;"><span style="background-color: white; color: #3b3a39; font-size: 14px; line-height: 16px;"><br /></span>
<span style="background-color: white; color: #3b3a39; font-size: 14px; line-height: 16px;">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. </span><span style="background-color: white; color: #3b3a39; font-size: 14px; line-height: 16px;">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. </span><span style="color: #3b3a39; font-size: 14px; line-height: 16px;">What are their arguments?</span></span><br />
<span style="color: #3b3a39; font-family: inherit;"><span style="font-size: 14px; line-height: 16px;"><br /></span></span>
<span style="color: #3b3a39; font-family: inherit;"><span style="font-size: 14px; line-height: 16px;">1. India needs 9% growth every year because the population is huge and inflation is </span></span><span style="color: #3b3a39; font-family: inherit; font-size: 14px; line-height: 16px;">not at all a problem and many people has come out of poverty because of monetary expansion.</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">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.</span><br />
<br />
<span style="font-family: inherit;">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 <strike>pa</strike> 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.</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">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. </span><span style="font-family: inherit;">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.</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">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.</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">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.</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">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.</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">The effects are showing now. This has become a ponzi scheme. Now to continue this business we need the following:</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">1. The inflation has to go up in the same rate ( 10% per annum)</span><br />
<span style="font-family: inherit;">2. People earning also should go up in the same pace</span><br />
<span style="font-family: inherit;"><br /></span>
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.<br />
<br />
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.<br />
<br />
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.<br />
<br />
But still I trust Raghu for the following reasons<br />
<br />
1. He may know all this and he may want to really help the country.<br />
2. Based on the above assumption, by buying time he may want to<br />
a) Prick the RE bubble<br />
b) Discipline the corporates<br />
c) Control the inflation<br />
3. The noises he made so far made me think that he intends to do all this given above.<br />
<br />
But again, he has to face heavy opposition from<br />
<br />
1. Corrupt Government<br />
2. Corporate Mafia<br />
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)<br />
<br />
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.<br />
<br />
I may continue the article :)</div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com9tag:blogger.com,1999:blog-2258603882855795195.post-44455402513791423362013-09-04T06:09:00.001+05:302013-09-04T06:09:55.102+05:30Raghuram Rajan have to show some spine<div dir="ltr" style="text-align: left;" trbidi="on">
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.<br />
<br />
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. <br />
<br />
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.<br />
<br />
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.<br />
<br />
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.<br />
<br />
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.<br />
<br />
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..<br />
<br />
( to be continued)</div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com2tag:blogger.com,1999:blog-2258603882855795195.post-76409742367756994532013-08-28T20:17:00.001+05:302013-08-28T20:17:08.120+05:30I told you so...<div dir="ltr" style="text-align: left;" trbidi="on">
<a href="http://www.business-standard.com/article/economy-policy/finmin-blames-rbi-policy-project-clearance-lag-for-economic-slowdown-113082800165_1.html">http://www.business-standard.com/article/economy-policy/finmin-blames-rbi-policy-project-clearance-lag-for-economic-slowdown-113082800165_1.html</a><br />
<br />
As I said, Chidu blames Subbu.<br />
<br />
god saves the country</div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com2tag:blogger.com,1999:blog-2258603882855795195.post-2036819113706304532013-08-22T20:42:00.001+05:302013-08-22T20:42:39.770+05:30Accounting fraud<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="background-color: white; color: #37404e; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px; line-height: 18px;">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</span><br style="background-color: white; color: #37404e; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px; line-height: 18px;" /><br style="background-color: white; color: #37404e; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px; line-height: 18px;" /><span style="background-color: white; color: #37404e; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px; line-height: 18px;">Apparently this is done to show(prop) up the bank balance sheets.</span><br style="background-color: white; color: #37404e; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px; line-height: 18px;" /><br style="background-color: white; color: #37404e; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px; line-height: 18px;" /><span style="background-color: white; color: #37404e; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px; line-height: 18px;">Shame on you guys. Why not removing the prudential accounting norms altogether?</span></div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com3tag:blogger.com,1999:blog-2258603882855795195.post-70046599935947806602013-08-22T05:32:00.001+05:302013-08-22T05:32:07.880+05:30Comedy by Economic Times<div dir="ltr" style="text-align: left;" trbidi="on">
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<br />
<br />
' 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..'<br />
<br />
<b><u>My comments</u></b><br />
<b><u><br /></u></b>
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.<br />
<br />
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.<br />
<br />
பேய் ஆட்சி செய்தால் பிணந்தின்னும் சாத்திரங்கள்...<br />
<br />
<br /></div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com0tag:blogger.com,1999:blog-2258603882855795195.post-9443713663531812452013-08-22T05:20:00.003+05:302013-08-22T05:20:55.241+05:30Markets slap it on the face<div dir="ltr" style="text-align: left;" trbidi="on">
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.<br />
<br />
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?<br />
<br />
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?<br />
<br />
Rupee is touching new low everyday. This is kind of record of sorts.<br />
<br />
You have to read foreign media about the real damage to Indian economy.<br />
<br />
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?<br />
<br />
<br /></div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com1tag:blogger.com,1999:blog-2258603882855795195.post-73372751593125246292013-08-21T05:58:00.002+05:302013-08-21T05:58:26.207+05:30RBI is goofing up further :(<div dir="ltr" style="text-align: left;" trbidi="on">
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?<br />
<br />
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.<br />
<br />
They say Raghuram Rajan is inteligent and will do the necessary for the economy. But it seems he is panicking more than others.<br />
<br />
Equity markets are shaky<br />
Bonds markets are shaky<br />
Commodity markets , the less said it is better<br />
<br />
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.<br />
<br />
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.<br />
<br />
Now what next?<br />
<br />
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?<br />
<br />
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.<br />
<br />
<br />
<br />
<br /></div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com0tag:blogger.com,1999:blog-2258603882855795195.post-21701116334544357872013-08-18T09:24:00.002+05:302013-08-18T09:24:24.360+05:30Worst fears have come true<div dir="ltr" style="text-align: left;" trbidi="on">
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 .<br />
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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.<br />
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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.<br />
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<a href="http://timesofindia.indiatimes.com/business/india-business/Manmohan-Subbarao-spar-over-RBIs-policies/articleshow/21887267.cms">http://timesofindia.indiatimes.com/business/india-business/Manmohan-Subbarao-spar-over-RBIs-policies/articleshow/21887267.cms</a><br />
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<span style="background-color: white; font-family: Tahoma, Arial, Georgia; font-size: 12px; line-height: 18px;">“RBI was committed to inflation control, not because it did not care for growth; but because it cared for growth,” Subbarao Said. </span><br />
<span style="background-color: white; font-family: Tahoma, Arial, Georgia; font-size: 12px; line-height: 18px;"><br /></span>
<span style="background-color: white; font-family: Tahoma, Arial, Georgia; font-size: 12px; line-height: 18px;">This is like a slap in the face. But still I dont think corrupt stooges would understand the message.</span></div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com1tag:blogger.com,1999:blog-2258603882855795195.post-23348964829395180662013-08-17T09:43:00.002+05:302013-08-17T09:43:13.221+05:30Bond Yields are rising both locally and in abroad<div dir="ltr" style="text-align: left;" trbidi="on">
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.<br />
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Indian stock crash yesterday is a precursor for the things to come.<br />
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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?<br />
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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?<br />
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Subbarao's parting time bombs starting to burst.<br />
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1. The repo limit controls indirectly increased the rates. Now it is matter of time to increase rate really.<br />
2. The capital controls measures last week is the last nail in the coffin.<br />
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Thank you Dr.Subbarao, you have given back to the government in the same coin. Let us hope the excesses are swiftly blown away.<br />
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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.<br />
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SOVEREIGN DOWNGRADE IS SO NEAR. IF THE RATINGS AGENCIES DO NOT ACT NOW THEN WE MAY HAVE TO DOUBT THEIR INTEGRITY AS WELL.</div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com4tag:blogger.com,1999:blog-2258603882855795195.post-52891416394664185402013-08-14T22:43:00.001+05:302013-08-14T22:43:28.935+05:30WPI shoots up where is ready to sell wife lobby?<div dir="ltr" style="text-align: left;" trbidi="on">
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.<br />
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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.<br />
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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.<br />
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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.<br />
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RAISE INTEREST RATES BY 2 PERCENTAGE. SCREW ALL THE REAL ESTATE BROKERS. THE COUNTRY WILL BE OKAY. DO YOU HAVE IT IN YOU RBI?</div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com3tag:blogger.com,1999:blog-2258603882855795195.post-36254959493067238892013-08-11T15:31:00.001+05:302013-08-11T15:31:19.573+05:30Comedy By Indian Government<div dir="ltr" style="text-align: left;" trbidi="on">
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.<br />
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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.<br />
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Now again Monday government will announce some measures during market hours it seems. I love to see it to be bombed. <br />
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Another news is that sebi crackdown on bear cartels. <a href="http://www.business-standard.com/article/markets/bear-cartels-under-sebi-scanner-for-battering-bluechip-stocks-113081100230_1.html">http://www.business-standard.com/article/markets/bear-cartels-under-sebi-scanner-for-battering-bluechip-stocks-113081100230_1.html</a> 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..<br />
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Government is either trying to cheat public or barking at the wrong tree</div>
Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com1tag:blogger.com,1999:blog-2258603882855795195.post-33888956206423063992013-08-10T13:58:00.002+05:302013-08-10T13:58:17.543+05:30What India will do next?<div dir="ltr" style="text-align: left;" trbidi="on">
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.<br />
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However, I think the government next course of action would be:<br />
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1. Banning short selling in currency<br />
2. Banning short selling in equities<br />
3. Can snatch the dollars from traveller coming back from abraod at airport itself :)<br />
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.<br />
5. Another scheme for compulsory going for housing loans and apartments is under purview of Chidambaram.<br />
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Mangomanhttp://www.blogger.com/profile/00091941691188942489noreply@blogger.com1