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.