I say tuh-mey-toh (tomato), you say tuh-mah-toh (tomato) ...

It is interesting to wait and watch till when will the Indian government consider this "temporary decline in economic activity", accompanied by "widespread decline in the GDP, employment, trade, industrial production, and real income," NOT to be a RECESSION, BUT merely an "economic slowdown" that has now lasted for nearly 4 months!!??



Reference:

Chidambaram bats for more economic stimulus

Bailout not for the rich!

There is nothing surprising if this is not what is also running through the minds of Indians when each time the government announces a bailout and the next week nothing happens in real terms to uplift the employment situation. We too need a change!!!



Reference:

House angry at bailout; Obama team makes pledges

Castles into the sand whereforth they rose ...

So the cracks have begun to show. Hope what would Montek say about this. Is it 7% growth story in 2009 or is it just a slower slowdown or a gradual and sluggish movement towards eventual doom?!


References:

Bharat Forge slips into the red...

Ranbaxy reports net loss of Rs 806 cr

Reliance Q3 net profit down 9.8%

Refining margins pull RIL down

Reliance Infra Q3 net dips 16.71 pc at Rs 251 cr

So why does it still live ... let it die?!

There is now a need for an International or Trans-National Regulatory Authority or Initiative to regulate auditors of a non-governmental nature that indulge in promotion of private profiteering and investor and employee jeopardy.


References:

Don't rely on our Satyam audits: Price Waterhouse

Price Waterhouse admits goof-up in Satyam audit

Crumblin' Down ...

Need there be said anything. Crumbling continues, and what is interesting is that both east and west are affecting each other.

References:

Citi plans to shrink itself by one-third

Nortel Networks files for US bankruptcy

Banks told to disclose if they have hired Price Waterhouse (Citi has an exposure of about $70 million (Rs340 crore today) to Satyam)

Auditor, Audited, Auditing, more ...

When the system checks the devious, the devious check themselves. When the checkers of the devious goof up, the system should check the devious and the devious checkers. Hope this results in a proper checking of the devious checkers, because it is not the first time these devious checkers have failed to check.

Below are reference lists of follies including the very recent Madoff and Satyam fiasco. The buck has to stop somewhere, doesn't it?


References:

The men who certified Satyam's fudged account?

PwC may be asked to re-state accounts of Satyam: P Jain

Sebi team reaches Satyam complex and PwC office in H'bad

PwC faces axe from major clients after Satyam fiasco

PwC has a chequered past with taxmen

Bringing Satyam auditor PwC to book may not be easy

----------

Australian cos in disarray over IT export to India

US law firms file ‘class-action’ suits against Satyam

Satyam slapped with 2 class action suits in US

We will prosecute Raju if US laws violated: Vianale

Don't buy, Satyam may go bankrupt: India Infoline

-----------

Fannie Mae sues KPMG over accounting flaws

KPMG to Admit Role in Tax Shelters; No Criminal Charges Expected

KPMG Trying to Cut Deal on Liabilities, Filing...

Spies, Lies & KPMG

Accounting giant KPMG to pay $10 million over Gemstar audit

Madoff Wreckage Bangs Feeder Funds, Auditors

Accounting firms drawn in to Madoff scandal

Future secure, present unsure ...

Short term profitability at the cost of long and medium term instability is inversely proportional to both consumer and employee interest, that we all know. There is also no need to rev up the insurance industry right now when there is need to reduce exposure of customers of ULIP schemes to market instabilities. Has there been not enough onslaught in the name of fictitious speculation ...?


References:

IRDA eases solvency margins for Ulips

IRDA cuts solvency margin for ULIPs by 20%

ULIPs likely to be cheaper by 10-15 pc

The Once and Future Kingdom ...

Just as the legend grew, so did the empire; yet fall did come swift, once the legend showed mortal weakness. There was no Merlyn to guide the economy beyond what it could have achieved, upon its soaring hopes and hollow growth, upon the timid ideals and flaccid zeal. Growth is worth only to the extent of its depth. A tree grows tall and strong only so long as its roots grow wide and deep; lest it stays a climber, ever so dependent upon an and any external support. I am reminded of the Gandhian dream of village as the centre of growth. Unless we are self-reliant, we will always rely on others for our growth and prosperity. What is sad is that this nation, this land has nothing we can not create into wealth and fuel our growth and prosperity. Scientific knowledge used merely for reducing the western cost of production, economic understanding only to fuel the desire of FII driven speculative "growth" and legal knowledge only used for the quelling of rights of our own, instead of upholding the unity and collective rights and growth of all men under the same flag.

But no one heard, and here we are at the twilight of our once "future kingdom" ... whether this twilight is of the setting glory or of the rising new hope, is yet to be seen, and is only in our own hands.



Reference:

Boom to gloom: Indian economy saw it all in 2008

Bailout racism or British ego?!

I wonder what it is? But it certainly is nothing to do with any economic rationale that the US is following. Saving banks was easy for the UK, yet Indian subsidiaries in the UK struggled without even a helping hand or even less any attention towards their rescue.

It was not long ago when UK intended to politically oppose the TATA takeover of the "British icons", yes today they refuse to extend any help; am I just seeing economic prudence by British politicians or is it just that the "Raj" has still not been able to digest the fact of the white man working for the brown man?!


References:

Mandelson downplays Jaguar rescue

Tata must arrange own resources for JLR: Mandelson

Government must not bail out every industry in trouble

Tata runs over critics with JLR buy

... am no fortunate son.

Stratfor is a name that would be one of many to be heard from now on.

The Reason: A NEED TO END THIS RECESSION.

Students of history and economics would recall the way and manner in which the Great Depression of the 1920s and 30s ended. Yes, by the start of a war that would employ many, and be funded by governments and supplied with weapons by private corporations. Demand rose as employment was created in the war machine.

The recent Mumbai attacks at the citadels of wealth have been aptly garbed under the color of nationality, clearly ignoring the fact of internal weakness of India and its ever so weakening political harmony and fraternity among its citizens. Provokes by the US, EU, UK and many other countries, it is not less evident that these two neighbors are being pushed to the brink of a war that may prove a source of livelihood for many corporations and not to mention that it may just help eliminate many hungry and unemployed people and thereby set the demand and supply equilibrium back on course to "growth".

Every once in awhile there spreads a forest fire to once again wipe the slate clean, as destruction lays clear the path to a new beginning, more so to clear the land of burdensome educated ever so demanding youth of today!!!


References:

Military strike on Pak? US company says India ready

One hand giveth ... the other hand taketh away...

So here we are ... wondering whether the prices would go up or down, whether fuel would be cheaper, or our electricity bill slimmer. Who knows, we are but at the hands of the almighty ... Government, is it for us or we for it. Energy, infrastructure and manufacturing would be hit. So how does this compare with reducing inflation, or in as much as even an attempt at reducing it‽


References:

Government unveils stimulus package

Railway hikes freight rates for cement, coal & coke

Rail freight rate hike derails benefits of excise duty cuts

Sensex pares gains, ends up 197pts

Fuel the fire ...

Fuel the fire ... enough to heat, inadequate to burn.

What will we do with so many new IITs, IIMs and Law Schools when we can not quench the thirst of a few. Rightly so, there is only one Harvard Business School, one NYU School of Law and one MIT. Hope NID, Ahmedabad learns a lesson and refrains from expansion. The curve is no more exponential in the right direction.

Reference:

Techies get 4 days to join Wipro BPO

Vivace !!!

I feel upbeat on the revelation that Michigan Engineering University is trying to make wave energy in oceans and rivers plausible. OPEC is and should not be the answer to all our energy needs. Nor should we rely on nuclear energy. The latter is simply like playing with fire.

However, its exactly not wave energy to be precise. It is the ability to harness water movement / natural currents in water bodies like the sea and rivers into kinetic and thereafter electrical energy. It is a process inspired by the technology used by fish to swim. Its aptly called the vortex-induced vibrations for aquatic clean energy (VIVACE).

Such vibrations, which were first observed 500 years ago by Leonardo DaVinci in the form of "Aeolian Tones", can cause serious damage to structures built in water, like docks and oil rigs. It would not be the first time humans are harnessing a powerful and destructive force in nature!!!


References:

Ocean currents can power the world, say scientists

Gomel: Debate still rages over Chernobyl fallout

Govt close to a deal with Belarus on Chernobyl children

A crude cut ... public pays, privateurs profit

Prophetic was the last post, realization comes true. I wonder how's the oil pool deficit doing!!! The government helps private entrepreneurs rather than serving public good. Who does the one chosen of the people, by the people and for the people serve? Entrepreneurial enslavement of government is the new norm. Needn't say more ...

Reference:

Oil companies to earn more profits

As the Taj burned ...

Ever wondered what has happened to us, as a nation? What are we building, what are we representing. We have not had a good run with our policy internationally except economic poise for benefit at all costs. Nor have we strengthened the social fabric internally. Why is it that we are here at this juncture, facing things that would be iconic of the wild west. Are we still in the building phase. Do we need a civil war to correct things out, to sort out the rights of all, the equalities that we want to impose and the promise of inequality free social fabric. We could sure take a cue from our great western partner or just follow our preamble that I keep making reference to. JUSTICE, LIBERTY, EQUALITY AND FRATERNITY. It so happens that my earlier post emphasized on EQUALITY, and this one screams the realization of FRATERNITY. It is only when we take all along that the path that we design, leads, inspires and motivates people to come along. It is only when we listen does the factum of FRATERNITY get realized. After all, it is not the destination, but how you get there is the worthier part (Shepherd Derria Book, Firefly, Ep. 1 Serenity).


मैं अकेला ही चला था जानिबे मंजिल मगर लोग साथ आते गए और कारवां बनता गया।


Reference:

As the Taj burned

Golden fleecing ...

We are being fleeced. It is no secret that a Toyota Camry would cost Rs.10 lacs on full and actual $-Rs conversion and the Honda Civic a mere Rs.8 Lacs, yet the prices are so steep. I kept quiet when Honda launched its Civic Hybrid at Rs.21.5 lacs. The Civic was the flagship Honda car, and still is, but only abroad, an icon of affordability. No, but not in India. This land has seen many average and below average priced cars from the west become status symbols. The VW Jetta. Its no joke that a weaker car without getup or show is priced for the foolish Indian customer higher than the Civic.

But now this recession has convinced me that most manufacturers would certainly reduce their 1000% profits at least down to 300% to woo the customers. With Honda of all doing so, the brand that never ever reduced its prices to boost its sale volume has for the first time stooped. With the Civic hybrid price reduction I hope many other cars would be sold cheaper, at least at prices nearing contemporary western markets.

Live with a man forty years, share his house, his meals, speak on every subject. Then tie him up and hold him over the volcano's edge and on that day, you will finally meet the man.

- Modu Shanyu

We sure need to do the same with these corporations, or once in a while by the cause of recession these corporations would reveal their true selves to both its customers and employees.



References:

Civic Hybrid cheaper by Rs 8 lakh

2009 Toyota Camry

Honda Civic Family - 2009 - the Official Honda Web Site

A crude cut ...

One always wonders, while the private sector makes profits on sliding crude oil prices, why is it that only public sector companies are made to be shown as the loss makers. Whose side are we on, on whose side is the government, for whom does it frame policy, who is running the government, of the people, by the people, but for only a few people!!!???

References:

No cut in fuel prices now because oil cos are bleeding: Deora

Crude prices low but PM says no cut in fuel prices

RIL Q2 net up 7.4% on high crude price

RIL Q2 net up 7.4%; high oil prices push revenue by 39.5%

RIL Q2 net up 7.4%; high oil prices push revenue by 39.5%

November 16, rich get richer ...

Who gets richer, who can afford, is it too late or is it just the IIM grads' kids who will form the elite club like the Ivy league, the principle of self-sustenance now is being redefined.

There is surely nothing like the ever growing business of education, no recession see this one, eh!!


Reference:

CAT on Nov 16; IIMs set to be richer by Rs 23 crore

Is the spirit of '69 back in the USA? ...

Aid to the ailing labor intensive industries rather than the Wall Street cloud money lenders, sharpening of energy policy to gain self-sufficiency ("energy independence"), facilitation of stem cell research, environmental protection (in Utah), and more is to come. Its been heard once before, has it not? This civil rights lawyer has a different resume from the ex-military, oil barons of yesteryears. Hope the path he takes is different as well. We need a difference creator not a line-tower, albeit at the cost of the industrialists but certainly for the one who toils from the sweat of his brow ...

Reference:

Emanuel Urges Speeding Up Aid to Auto Industry

Liquidity or gasification? ...

With job losses and reducing demand where is the liquidity going? RBI has left no stone unturned ... or has it? Talk of growth is futile without sustenance of the already established industry. The currently established industry is slowing down or shutting down, and the Finance Minister talks of FDI.

One does not go boat shopping when one's boat has a hole, he repairs it to reach the shore safely ... is the format skewed or my vision, or is it just that the liquidity is evaporating!!! PLEASE DO NOT REPAY A LOAN WITH ANOTHER LOAN, its been tried once already ...



References:

More companies opt to trim man hours, cut production

Demand slump: Tata Motors may shut Pune unit for 6 days

Ashok Leyland to work 3-days a week

RIL: Margin blues

Reliance Retail recasts operations to cut losses

CITU says RIL's reported closure of units


Government may ease FDI caps

Foreign investment inflows increase 259 per cent in September

India sees huge jump in FDI inflows despite global woes

FDI booster dose to rejuvenate health insurance cos

Tobacco FDI up for review on Thursday