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

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?