You must be thinking why i have written most in capitals and not things. Lets find out why I've written it like this.
There is a beautiful Quote I would like to share with you:
"Most of the things that we desire in life are expensive. But the truth is that the things that really satisfy us are absolutely free
Love, Joy, Laughter and Friends..."
Isn't it that we already know??
But in order to LIVE our lives we forget the most necessary things in life. Those things cannot, and can never be bought with money. Yes the most simple things in our life give us happiness, satisfy us, make us feel content are the things which everyone can give everybody.
Love: The most important thing in out life is love. Money can buy a lover but it cannot buy love. You cannot force anyone to love you. No. It is the most beautiful emotion ever a heart can experience. Love can only be felt in one's hearts. The most simple way to feel this emotion is to be lovable, be caring towards your loved ones. The emotion that are getting lost in the race of life in order earn bread and butter, we havent stopped to look back at those for whom we are earning.
Laughter: Laughter is said to be the best medicine. And indeed it is the best medicine. We need a reason to be sad, but we dont need a reason to smile. Infact the most common language spoken all over the world is "SMILE". We can look for small small things in life which gives us joy. For instance, a hug from a best friend can be the most joyful moment.
Relationships: Relationships are the things which matter in life not money. We earn money for relations and in order to earn money we forget those relationships. If there is no one by your side at your deathbed, what will you do of that money?? You won't even be able to go to the cemation ground on your own. Money will come and go. But relations are here to stay, stay with you forever.
In life, it becomes very important to be with your loved ones beacuse they are the one's who make your life worth living. bE compassiontae towards your freinds, and most importantly your parents. No one can love you more than your parents in this worlds. Respect them. Spend time with them, the time you spend with them becomes theiir most precious moment. Make them feel special.
Invest in the most precious things in your life; Love, Laughter, Joy, Frrriends, Relations,... because these are the things that combine and make your life a LIFE.
Have a Good Day!!!
Saturday, June 13, 2009
Saturday, April 11, 2009
A comparison of the 1929 Recessions to 2008
To understand the ongoing recession of 2008-09 it is important to compare and contrast it with the Great Depression of 1929. The 2008-09 recession is the worst recession since 1929 which has not turned into a depression as of now.
There is no single cause for The Great Depression, while there were number of causes.
1. Stock Market Crash
Stock Market is always acting as a barometer of any Economy. The Great Depression started with the stock market crash on October 29, 1929. Within two months of the crash in October, the stockholders have lost $40 billion. Even though the stock market started regaining some of its losses by 1930, but this was not enough and America entered into what is called The Great Depression.
Similarly, it took 28 years for Sensex to reach at the level of 12000 in year 2007 and Sensex took only one year to reach at the level of 21000 from 12000. The crash occurred in 2008, though it was not the reason for the recession to begin. But it was the effect of causes of recession. The housing bubble in the US has busted which forced the foreign investors to pull out their money from the stock market which was the cause of the Sensex jump from 12000 to 21000.
2. Bank Failures
Many people think that stock market crash was the reason of Great Depression, but the crash only set the stage for the Great Depression. It was after the crash that people became insecure about there money in the banks, and started withdrawing money from the banks resulting in bank failures. In all 9000 banks failed in the 1930s, and in the first 10 months of the recession as many as 744 banks failed. Those people who left money in the failed banks lost it. The surviving banks stopped lending money, in fear that if they lend they would also fail.
In 2008, there have been only 19 bank failures. Also the 1930’sfailure of banks led to the creation of Federal Deposit Insurance Corporation (FDIC). When the banks had a run in deposits in the early 1930’s, there was no deposit insurance and there was no requirement that a bank keep a percentage of reserves for just such a run. Now, a bank that offers FDIC insurance must keep a percentage of assets available, with the FDIC kicking in the rest required to return the insured limit (usually $250,000) should a run occur.
3. Reduction in Purchasing Across the Board
In 1929, the stock market crash has already set a fear in the hearts of the investor as well as the non investors, and the fear of further economic difficulties, ceased them from purchasing new items. This resulted in reduction in the number of items produced and thus a reduction in workforce. As people lost their jobs, they were unable to keep up with paying for items they had bought through installment plans and their items were repossessed. More and more inventory began to accumulate. The unemployment rate rose above 25% which meant, of course, even less spending to help alleviate the economic situation.
These days a similar position is prevailing, people have stopped spending because of which the jobs are getting reduced and the unemployment is increasing. The unemployment rate hit 6.1% in September 2008 a 5 year high & the prevailing unemployment rate in the US is 8.5%.
4. Trade and industrial production
Most historians and economists partly blame the American Smoot-Hawley Tariff Act (enacted June 17, 1930) for worsening the depression by seriously reducing international trade and causing retaliatory tariffs in other countries. Foreign trade was a small part of overall economic activity in the United States and was concentrated in a few businesses like farming; it was a much larger factor in many other countries.
In middle-October 2008, the Baltic Dry Index, a measure of shipping volume, fell by 50% in one week, as the credit crunch made it difficult for exporters to obtain letters of credit.
In February 2009, The Economist claimed that the financial crisis had produced a "manufacturing crisis", with the strongest declines in industrial production occurring in export-based economies.
In March 2009, Britain's Daily Telegraph reported the following declines in industrial output, from January 2008 to January 2009: Japan -31%, Korea -26%, Russia -16%, Brazil -15%, Italy -14%, Germany -12%.
There is no single cause for The Great Depression, while there were number of causes.
1. Stock Market Crash
Stock Market is always acting as a barometer of any Economy. The Great Depression started with the stock market crash on October 29, 1929. Within two months of the crash in October, the stockholders have lost $40 billion. Even though the stock market started regaining some of its losses by 1930, but this was not enough and America entered into what is called The Great Depression.
Similarly, it took 28 years for Sensex to reach at the level of 12000 in year 2007 and Sensex took only one year to reach at the level of 21000 from 12000. The crash occurred in 2008, though it was not the reason for the recession to begin. But it was the effect of causes of recession. The housing bubble in the US has busted which forced the foreign investors to pull out their money from the stock market which was the cause of the Sensex jump from 12000 to 21000.
2. Bank Failures
Many people think that stock market crash was the reason of Great Depression, but the crash only set the stage for the Great Depression. It was after the crash that people became insecure about there money in the banks, and started withdrawing money from the banks resulting in bank failures. In all 9000 banks failed in the 1930s, and in the first 10 months of the recession as many as 744 banks failed. Those people who left money in the failed banks lost it. The surviving banks stopped lending money, in fear that if they lend they would also fail.
In 2008, there have been only 19 bank failures. Also the 1930’sfailure of banks led to the creation of Federal Deposit Insurance Corporation (FDIC). When the banks had a run in deposits in the early 1930’s, there was no deposit insurance and there was no requirement that a bank keep a percentage of reserves for just such a run. Now, a bank that offers FDIC insurance must keep a percentage of assets available, with the FDIC kicking in the rest required to return the insured limit (usually $250,000) should a run occur.
3. Reduction in Purchasing Across the Board
In 1929, the stock market crash has already set a fear in the hearts of the investor as well as the non investors, and the fear of further economic difficulties, ceased them from purchasing new items. This resulted in reduction in the number of items produced and thus a reduction in workforce. As people lost their jobs, they were unable to keep up with paying for items they had bought through installment plans and their items were repossessed. More and more inventory began to accumulate. The unemployment rate rose above 25% which meant, of course, even less spending to help alleviate the economic situation.
These days a similar position is prevailing, people have stopped spending because of which the jobs are getting reduced and the unemployment is increasing. The unemployment rate hit 6.1% in September 2008 a 5 year high & the prevailing unemployment rate in the US is 8.5%.
4. Trade and industrial production
Most historians and economists partly blame the American Smoot-Hawley Tariff Act (enacted June 17, 1930) for worsening the depression by seriously reducing international trade and causing retaliatory tariffs in other countries. Foreign trade was a small part of overall economic activity in the United States and was concentrated in a few businesses like farming; it was a much larger factor in many other countries.
In middle-October 2008, the Baltic Dry Index, a measure of shipping volume, fell by 50% in one week, as the credit crunch made it difficult for exporters to obtain letters of credit.
In February 2009, The Economist claimed that the financial crisis had produced a "manufacturing crisis", with the strongest declines in industrial production occurring in export-based economies.
In March 2009, Britain's Daily Telegraph reported the following declines in industrial output, from January 2008 to January 2009: Japan -31%, Korea -26%, Russia -16%, Brazil -15%, Italy -14%, Germany -12%.
Wednesday, March 25, 2009
A Matter of Perception
Have you ever thought why we treat everyone differently when God has made evryone equal??
There are many reasons for everyone being equal yet behave differently with different people. Let me try and make an elaboration on some of the aspects.
When people treat you badly
1. When someone lies to you- It means that things are not always what they seem. The truth is often far beneath the surface. Look beyond the masks people wear if you want to know what is in their hearts. Remove your own masks to let people know who you really are.
2. When someone steals from you it teaches you that nothing is forever- It means always appreciate what you have. You never know when you might lose it. Never take your friends or family for granted, because today and sometimes only this very moment is the only guarantee you may have.
3. When someone inflicts injury upon you- It means that the human state is a very fragile one. Protect and take care of your body as best as you can, it's the one thing that you are sure to have forever.
4. When someone mocks you- It means that no two people are alike. When you encounter people who are different from you, do not judge them by how they look or act, instead base it on the contents of what is in their hearts.
5. When someone breaks your heart- It means that loving someone does not always mean that the person will love you back. But don't turn your back on love, because when you find the right person, the joy that one person brings you will make up for all of your past hurts. Times a thousand fold.
6. When someone holds a grudge against you- It means that everyone makes mistakes. When you are wronged, the most virtuous thing you can do is forgive the offender without pretense. Forgiving those who have hurt us is often the most difficult and painful of life's experiences, but it is also the most courageous thing a person can do.
7. When a loved one is unfaithful to you- It means that resisting temptation is Man's greatest challenge. Be vigilant in your resistance against all temptations. By doing so, you will be rewarded with an enduring sense of satisfaction far greater than the temporary pleasure by which you were tempted.
8. When someone cheats you- It means that greed is the root of all evil. Aspire to make your dreams come true, no matter how lofty they may be. Do not feel guilty about your success, but never let an obsession with achieving your goals lead you to engage in malevolent activities.
9. When someone ridicules you- It teaches you that nobody is perfect. Accept people for their merits and be tolerant of their flaws. Do not ever reject someone for imperfections over which they have no control.
What happenes when people are nice to you
"When someone loves us, it teaches us love, kindness, charity, honesty, humility, forgiveness, acceptance, and all of these can counteract all the evil in the world. For every good deed, there is one evil deed. Man alone has the power to control the balance between good and evil, but because the lessons of love are not taught often enough, the power is too often abused.
When you enter someone's life, whether by plan, chance or coincidence, consider what your lesson will be. Will you teach love or a harsh lesson of reality? When you die, will your life have resulted in more loving or more hurting? More comfort or more pain? More joy or more sadness? Each one of us has the power over the balance of the love in the world. Use it wisely!"
It depends on the person how one sees the things and how you react, and how you balance your life.
it is vey important to strike a balance in your life, to have a peaceful & happy life!!!
There are many reasons for everyone being equal yet behave differently with different people. Let me try and make an elaboration on some of the aspects.
When people treat you badly
1. When someone lies to you- It means that things are not always what they seem. The truth is often far beneath the surface. Look beyond the masks people wear if you want to know what is in their hearts. Remove your own masks to let people know who you really are.
2. When someone steals from you it teaches you that nothing is forever- It means always appreciate what you have. You never know when you might lose it. Never take your friends or family for granted, because today and sometimes only this very moment is the only guarantee you may have.
3. When someone inflicts injury upon you- It means that the human state is a very fragile one. Protect and take care of your body as best as you can, it's the one thing that you are sure to have forever.
4. When someone mocks you- It means that no two people are alike. When you encounter people who are different from you, do not judge them by how they look or act, instead base it on the contents of what is in their hearts.
5. When someone breaks your heart- It means that loving someone does not always mean that the person will love you back. But don't turn your back on love, because when you find the right person, the joy that one person brings you will make up for all of your past hurts. Times a thousand fold.
6. When someone holds a grudge against you- It means that everyone makes mistakes. When you are wronged, the most virtuous thing you can do is forgive the offender without pretense. Forgiving those who have hurt us is often the most difficult and painful of life's experiences, but it is also the most courageous thing a person can do.
7. When a loved one is unfaithful to you- It means that resisting temptation is Man's greatest challenge. Be vigilant in your resistance against all temptations. By doing so, you will be rewarded with an enduring sense of satisfaction far greater than the temporary pleasure by which you were tempted.
8. When someone cheats you- It means that greed is the root of all evil. Aspire to make your dreams come true, no matter how lofty they may be. Do not feel guilty about your success, but never let an obsession with achieving your goals lead you to engage in malevolent activities.
9. When someone ridicules you- It teaches you that nobody is perfect. Accept people for their merits and be tolerant of their flaws. Do not ever reject someone for imperfections over which they have no control.
What happenes when people are nice to you
"When someone loves us, it teaches us love, kindness, charity, honesty, humility, forgiveness, acceptance, and all of these can counteract all the evil in the world. For every good deed, there is one evil deed. Man alone has the power to control the balance between good and evil, but because the lessons of love are not taught often enough, the power is too often abused.
When you enter someone's life, whether by plan, chance or coincidence, consider what your lesson will be. Will you teach love or a harsh lesson of reality? When you die, will your life have resulted in more loving or more hurting? More comfort or more pain? More joy or more sadness? Each one of us has the power over the balance of the love in the world. Use it wisely!"
It depends on the person how one sees the things and how you react, and how you balance your life.
it is vey important to strike a balance in your life, to have a peaceful & happy life!!!
Wednesday, January 28, 2009
Peace of Mind
Mind is a very unique thing in this world... its there but no one can see it...just like god... mind it am talking about "mind" not brain....
The mind has the power to control your body & you have the power to control your mind (with your heart). Its strange no, how your mind controls your actions??
Just give it a thought what happenes when there is a lot of chaos in your room... when you sit in a room filled with chaos how irritatedyou feel?? when you are not able to find anything in that room?? when you are not able to walk in the room because of the clutter...how does it feel??/ messy?? irritated??
How would you feel when there is a lot of chaos in your mind?/?
Even more irritated...when your mind is handling a chaotic situation...you forget to be happy.... you forget to be nice...you take tension...
when you are with friends you are not enjoying their company... when you are with your lover you are thinking of an assignment to be done..you are there physically..but mentally you are somewhere else... You are not able to fully enjoy the moment you are in ...this is where peace of mind comes in....
If your mind is at peace...you'll enjoy with your friends, you'll enjoy everymoment with your loved one's... you'll be able to do your work, assingnments etc...in half of the time...you wont have to search for a reason to be happy when you are at peace with yourself... having peace in your mind is a state of happiness in itself...
You dont have to look for happiness in material things...
There are few tips by which you can achieve peace of mind to some extent...
1. Do not interfere in others' business you have your own life and things to take care of..why get one more burden on that???
2. Do not procrastinate and never regret stop procrastinating things , it only adds to the guilt feeling deep inside your mind...
3. Never leave the mind vacant Empty vessels make most of the noise...so dont keep your mind free..
4. Stay away from negative conversations and from negative people.
5. Don't hold grudges. Learn to forget and forgive. Nurturing ill feelings and grievances hurts you and causes lack of sleep.
6. Learn to be more patient and tolerant with people and events.
7. Don't take everything too personally. Some emotional and mental detachment is desirable. Try to view your life and other people with a little detachment and less involvement. Detachment is not indifference, lack of interest or coldness. It is the ability to think and judge impartially and logically. Don't worry if again and again you fail to manifest detachment. Just keep trying.
8. Practice some concentration exercises. This will help you to reject unpleasant thoughts and worries that steal away your peace of mind.
9.Learn to practice meditation. Even a few minutes a day will make a change in your life.
The mind has the power to control your body & you have the power to control your mind (with your heart). Its strange no, how your mind controls your actions??
Just give it a thought what happenes when there is a lot of chaos in your room... when you sit in a room filled with chaos how irritatedyou feel?? when you are not able to find anything in that room?? when you are not able to walk in the room because of the clutter...how does it feel??/ messy?? irritated??
How would you feel when there is a lot of chaos in your mind?/?
Even more irritated...when your mind is handling a chaotic situation...you forget to be happy.... you forget to be nice...you take tension...
when you are with friends you are not enjoying their company... when you are with your lover you are thinking of an assignment to be done..you are there physically..but mentally you are somewhere else... You are not able to fully enjoy the moment you are in ...this is where peace of mind comes in....
If your mind is at peace...you'll enjoy with your friends, you'll enjoy everymoment with your loved one's... you'll be able to do your work, assingnments etc...in half of the time...you wont have to search for a reason to be happy when you are at peace with yourself... having peace in your mind is a state of happiness in itself...
You dont have to look for happiness in material things...
There are few tips by which you can achieve peace of mind to some extent...
1. Do not interfere in others' business you have your own life and things to take care of..why get one more burden on that???
2. Do not procrastinate and never regret stop procrastinating things , it only adds to the guilt feeling deep inside your mind...
3. Never leave the mind vacant Empty vessels make most of the noise...so dont keep your mind free..
4. Stay away from negative conversations and from negative people.
5. Don't hold grudges. Learn to forget and forgive. Nurturing ill feelings and grievances hurts you and causes lack of sleep.
6. Learn to be more patient and tolerant with people and events.
7. Don't take everything too personally. Some emotional and mental detachment is desirable. Try to view your life and other people with a little detachment and less involvement. Detachment is not indifference, lack of interest or coldness. It is the ability to think and judge impartially and logically. Don't worry if again and again you fail to manifest detachment. Just keep trying.
8. Practice some concentration exercises. This will help you to reject unpleasant thoughts and worries that steal away your peace of mind.
9.Learn to practice meditation. Even a few minutes a day will make a change in your life.
Monday, January 19, 2009
Values : Personal Treasure
What are Values??
Values are the beliefs of a person,The priciples one follow in life are the values of a person. These are inherited by the family & one can even have their own value set different from their family.
Values of Indians are different from anywhere else in the world. Value is what you mean to others & value is what you see in others. Make yourself valuable for others.We are here in this world for a purpose & not for the material wealth. This will remain here we have to take with ourselves our karma. Our karma will decide our faith after this life is over.
We had a subject in school "DIVINITY" a word derived from the word Divine which means something which is sacred just like GOD.... This subject was devoted for our religios knowledge. That time we used to think that why is this?? This is such a waste of time & all...but now I've realised its Value. The value of the knowledge given in those classes. Once our techer told us that there are "84,00,000 junia" that means 84 lac species of living beings including the smallest insect living in this world. We have to take birth again and again to pay back our Debt of Karma . Debt of karma is nothing but or bad karma, it can be concious or unconcious. Our teacher also told us a way out of this cycle or birth n rebirth.
She told us to pray to GOD daily. When we pray to GOD daily, In our Balance Sheet of Karma he Credits us with the good deeds & Writes - off our Debt.
You must be thinking why I am telling this story in a write describing value?? right??
Now Let me tell you the importance of Prayer in Ceating your personal treasure that is value.
While we pray, God sits on his Chair and listens to our prayers himself & he listens to everything that is going inside your mind. He shows you way out for everything. Value comes when you value others presence, others feeling. Everyone is unique,everyone is special. You have to accept everyone as they are. when you accept others you are happy. When others accept you as you are you are happy.
When you see a problem don't take tension, You'll get a solution & if you won't then what is the need to worry.Right.
Now when you pray to HIM he listens to your problem & solves it in the best possible way..
Value is Valuing yourself & others.
Value is Respecting yourself & others.
Value is Being patient when talking to your parents even when you know they are wrong and you are right.
Value is Giving happiness to others.
Value is Making someone smile [:)]
Values are the beliefs of a person,The priciples one follow in life are the values of a person. These are inherited by the family & one can even have their own value set different from their family.
Values of Indians are different from anywhere else in the world. Value is what you mean to others & value is what you see in others. Make yourself valuable for others.We are here in this world for a purpose & not for the material wealth. This will remain here we have to take with ourselves our karma. Our karma will decide our faith after this life is over.
We had a subject in school "DIVINITY" a word derived from the word Divine which means something which is sacred just like GOD.... This subject was devoted for our religios knowledge. That time we used to think that why is this?? This is such a waste of time & all...but now I've realised its Value. The value of the knowledge given in those classes. Once our techer told us that there are "84,00,000 junia" that means 84 lac species of living beings including the smallest insect living in this world. We have to take birth again and again to pay back our Debt of Karma . Debt of karma is nothing but or bad karma, it can be concious or unconcious. Our teacher also told us a way out of this cycle or birth n rebirth.
She told us to pray to GOD daily. When we pray to GOD daily, In our Balance Sheet of Karma he Credits us with the good deeds & Writes - off our Debt.
You must be thinking why I am telling this story in a write describing value?? right??
Now Let me tell you the importance of Prayer in Ceating your personal treasure that is value.
While we pray, God sits on his Chair and listens to our prayers himself & he listens to everything that is going inside your mind. He shows you way out for everything. Value comes when you value others presence, others feeling. Everyone is unique,everyone is special. You have to accept everyone as they are. when you accept others you are happy. When others accept you as you are you are happy.
When you see a problem don't take tension, You'll get a solution & if you won't then what is the need to worry.Right.
Now when you pray to HIM he listens to your problem & solves it in the best possible way..
Value is Valuing yourself & others.
Value is Respecting yourself & others.
Value is Being patient when talking to your parents even when you know they are wrong and you are right.
Value is Giving happiness to others.
Value is Making someone smile [:)]
Tuesday, December 23, 2008
Responsibility
Responsibility is a big word no?? and Being responsile is a big task.
Taking responsibility is actaully a big task, it makes you realise who you are?, what you can do?, and what are your powers...
If you take responsibility of your mistake & admit it ,that means you have an internal locus of control. you what you are doing & you know what went wrong.
Even if you dont know what went wrong, & you know that it was because of you take responsibility. It hels you gain respect in society.
You'll gain respect from people.Be careful not to repeat that mistake , 'cause it can go against you as well.
We often hesitate taking responsibility, taking responsibility for something makes you more reliable and dependable. reliabe and dependable people are oftenb looked at with respect and have commendable position in society. Why we respect or elders because they have our responsiblity. Imagine if they would have backed out of our responsibility what would have happened to us. right???
So take responsibility & enjoy the results.
Taking responsibility is actaully a big task, it makes you realise who you are?, what you can do?, and what are your powers...
If you take responsibility of your mistake & admit it ,that means you have an internal locus of control. you what you are doing & you know what went wrong.
Even if you dont know what went wrong, & you know that it was because of you take responsibility. It hels you gain respect in society.
You'll gain respect from people.Be careful not to repeat that mistake , 'cause it can go against you as well.
We often hesitate taking responsibility, taking responsibility for something makes you more reliable and dependable. reliabe and dependable people are oftenb looked at with respect and have commendable position in society. Why we respect or elders because they have our responsiblity. Imagine if they would have backed out of our responsibility what would have happened to us. right???
So take responsibility & enjoy the results.
Monday, October 20, 2008
Immunity of India to Global Financial Crisis(GFC)
Global Finacial Crisis.. A buzz word today on everyones mouth.. Everyone is taling about it, the market is crashing, meargers and aqusitions of leading firms of U.S.,bankruptcy of Lehmen Brothers. All this is related to GFC.
What is GFC?
It started with the sub prime crisis which tiggered out in the U.S.
sub Prime lending crisis was when banks started giving loans for buying propert to the people in U.S. without ensuring their secured return. This Carelessness resulted in defaults, the initial few defaults were overlooked which resulted in a increasing number of defaults. The increase in number of defaults meant that the money that was given as loans by banks has sunk. This created a Bad debt for the banks and the amount of bad debt was so big that it lead to huge losses to big banks.
This sub-prime Crisis was jus a trailer and the big picture was yet to be seen.
The sub prime crisis showed its effects after a year which can be seen in the crash down of the U.S. economy.
The losses to the U.S. banking system has gone up to $1.4 trilion ( source: IMF), the figure is still rising. The crisis has jus hit the west coast of India till now. The sensex rose to about eight folds since 2003 to the begining of 2008, but now it is down by 40% from its peak. (ET).
GFC Impact on India
First effect has been seen on the sensex. The banking system is also influenced by the global finacial crisis.
" The Collapse of Lehman Brothers can lead to some tightness in credit in India, but the government will provide coordinated funding where needed. " - Finance Minister , P. Chdambaram.
The effect in India is yet not that pronounced as it has been in countries like U.K. , Belgium , Ieland, Spain, japan. This can be due to India's proximity to the U.S. market as well as its closed economy.
Before the GFC hit the Global Market , india was facing a problem of inflation , rising cost of living, increase in crude oil price.
This has been tackled by the RBI, It has reduced the Repo Rate from 9% to 7.5%. This cut has injected 1.25lac crore rupees in the indian market to ease liquidity.
The inflation has eased a bit.
Despite the GFC & its impact, India is seen as a growing and promising economy. Indian emerging markets has attracted more importance from all over the world.
"The Asia-Pacific region, particularly India, is one of the attaractive places for grwoth. There is a lot of wealth created in India."
-John Thain, Chairman & CEO, Merrill Lynch, May 2008
"We have been active in advisory, and in private equity (in India), where we have invested over a billion dollars over the past year… the thing that attracts us is not the size of an economy but the growth of an economy”
- Lloyd Craig Blankfein, Chairman & CEO, Goldman Sachs, November 2007
“Our management has told me that, in a very controlled, healthy and gradual way, they would like to significantly expand the Asian operations”
- David Martin Darst, MD, Morgan Stanley, September 20, 2008
It started with the sub prime crisis which tiggered out in the U.S.
sub Prime lending crisis was when banks started giving loans for buying propert to the people in U.S. without ensuring their secured return. This Carelessness resulted in defaults, the initial few defaults were overlooked which resulted in a increasing number of defaults. The increase in number of defaults meant that the money that was given as loans by banks has sunk. This created a Bad debt for the banks and the amount of bad debt was so big that it lead to huge losses to big banks.
This sub-prime Crisis was jus a trailer and the big picture was yet to be seen.
The sub prime crisis showed its effects after a year which can be seen in the crash down of the U.S. economy.
The losses to the U.S. banking system has gone up to $1.4 trilion ( source: IMF), the figure is still rising. The crisis has jus hit the west coast of India till now. The sensex rose to about eight folds since 2003 to the begining of 2008, but now it is down by 40% from its peak. (ET).
First effect has been seen on the sensex. The banking system is also influenced by the global finacial crisis.
" The Collapse of Lehman Brothers can lead to some tightness in credit in India, but the government will provide coordinated funding where needed. " - Finance Minister , P. Chdambaram.
The effect in India is yet not that pronounced as it has been in countries like U.K. , Belgium , Ieland, Spain, japan. This can be due to India's proximity to the U.S. market as well as its closed economy.
Before the GFC hit the Global Market , india was facing a problem of inflation , rising cost of living, increase in crude oil price.
This has been tackled by the RBI, It has reduced the Repo Rate from 9% to 7.5%. This cut has injected 1.25lac crore rupees in the indian market to ease liquidity.
The inflation has eased a bit.
Despite the GFC & its impact, India is seen as a growing and promising economy. Indian emerging markets has attracted more importance from all over the world.
"The Asia-Pacific region, particularly India, is one of the attaractive places for grwoth. There is a lot of wealth created in India."
-John Thain, Chairman & CEO, Merrill Lynch, May 2008
"We have been active in advisory, and in private equity (in India), where we have invested over a billion dollars over the past year… the thing that attracts us is not the size of an economy but the growth of an economy”
- Lloyd Craig Blankfein, Chairman & CEO, Goldman Sachs, November 2007
“Our management has told me that, in a very controlled, healthy and gradual way, they would like to significantly expand the Asian operations”
- David Martin Darst, MD, Morgan Stanley, September 20, 2008
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