Hi,
I just got this on my email and felt like sharing here.
Dad used to give us a measly Rs. 20/- per month,in that we were not only able to eat stomachs fill,but we were able to save too!! Now we earn a sum of 20K, we have no idea where it goes, let alone saving it!!
Which is better, the former or the latter?
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6 subjects per year, 6 different teachers!One project since we joined and just one manager!!
Which is better, the former or the latter?
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We used to make notes;we used to study for ranks! Now we scan through our mails;we struggle for our ratings!!!
Which is better, the former or the latter?
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We have still not forgotten the people in the next section! Now we don't even know who sits in the next cubicle!!!
Which is better, the former or the latter?
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After getting back from a tiring play,we used to do our home work! Now who knows/cares about home;all we do is just work!
Which is better, the former or the latter?
------------ --------- --------- --------- --------- --------- -
We knew our history and economics!!Now let alone reading books,we don't even catch up with the daily news!
Which is better, the former or the latter?
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We had an aim in life;behind our backs we had our teachers!!Now we have no idea about the future nor do we find anyone who would tell us anything!
Which is better, the former or the latter?
Think about it.
~ Navjot Singh Sohanpal
Dec 28, 2007
Dec 12, 2007
SAVE the Dollar!!
Greetings,
I will be astonished if somebody has not heard about Sub Prime issue in US. But is it really the bad mortgage/loans that people need to worry about? I think there's more to it and it could get even worse. The credit crunch, the weakening economy, dollar slide in addition to the sub prime woes add more to the belief that US might be ready for recession. Some people are not ready to buy-in the recession compleletly but nobody is denying the possibility either.
Fed has resorted to the rate cuts to save the markets and infuse more liquidity into the market but if the dollar slide continues, Fed may even be forced to instead increase the rates even when recession lingers around the corner. Fed needs to balance the both.
YTD, Dollar as a currency has fallen significantly. Exporters to US, who did have contracts in USD have taken the major hits. The impact can be very painfully seen in the stock prices of Indian IT companies and other exporters as Indian Rupee has appreciated almost 15% against the dollar in this year. Airbus has already called Dollar's slide as *life-threatening*.
The decline in Dollar is led not only by economic weakness in US but there's more to it. The biggest problem with Dollar is that it has been the hegemonic currency for nearly 50 years; it sort of replaced Gold to become the common money for trade across the globe. It's not that dollar would lose it's place and countries would resort to some other currency as world's reserve currency. There are costs associated with it and is very difficult to choose any ONE currency; which could promise to give similar solidarity for decades as Dollar did. However, Euro and China's Yuan seems to be next best contenders. But let's see what could be leading to this threatening decline...
a. Dollar seemed to have gained the reputation of being stable currency for past many decades. Also, there was greater confidence of being well-regulated and transparent market in US. With that conviction gone now, net capital inflows to America seemed to have washed away.
b. Dollar is also effected by the consumer's sense of crisis leading to the all-time high speculative selling of dollars. This is one of the recent comments by Morgan Stanley's economist.
c. Central banks for many countries have kept their foreign-exchange reserves in the dollars. China alone seemed to have close to $1.4 trillion in reserves followed by Japan with $1 trillion. Imagine what can happen to dollar if all these countries think about cutting their losses and dump their dollar reserves.
d. Many countries, more importantly Gulf countries had been asked to peg their currencies by virtue of buying dollars. This would not let the Gulf currencies appreciate and US would still been able to buy the OIL in almost same price for years. But now, with dollar weakening, Gulf countries are finding it hard to curb their inflation and they would also like to change their exchange-rates; especially those countries whose currency is pegged against a basket rather than dollar alone.
So, there's more to dollar-decline than mere currency depreciation. I think American policy makers are smart enough not to let the dollar crash. I also think that other countries would also do their jobs to help the American's policy makers.
Outcry remains same...SAVE the Dollar!!
~ Navjot Singh Sohanpal
I will be astonished if somebody has not heard about Sub Prime issue in US. But is it really the bad mortgage/loans that people need to worry about? I think there's more to it and it could get even worse. The credit crunch, the weakening economy, dollar slide in addition to the sub prime woes add more to the belief that US might be ready for recession. Some people are not ready to buy-in the recession compleletly but nobody is denying the possibility either.
Fed has resorted to the rate cuts to save the markets and infuse more liquidity into the market but if the dollar slide continues, Fed may even be forced to instead increase the rates even when recession lingers around the corner. Fed needs to balance the both.
YTD, Dollar as a currency has fallen significantly. Exporters to US, who did have contracts in USD have taken the major hits. The impact can be very painfully seen in the stock prices of Indian IT companies and other exporters as Indian Rupee has appreciated almost 15% against the dollar in this year. Airbus has already called Dollar's slide as *life-threatening*.
The decline in Dollar is led not only by economic weakness in US but there's more to it. The biggest problem with Dollar is that it has been the hegemonic currency for nearly 50 years; it sort of replaced Gold to become the common money for trade across the globe. It's not that dollar would lose it's place and countries would resort to some other currency as world's reserve currency. There are costs associated with it and is very difficult to choose any ONE currency; which could promise to give similar solidarity for decades as Dollar did. However, Euro and China's Yuan seems to be next best contenders. But let's see what could be leading to this threatening decline...
a. Dollar seemed to have gained the reputation of being stable currency for past many decades. Also, there was greater confidence of being well-regulated and transparent market in US. With that conviction gone now, net capital inflows to America seemed to have washed away.
b. Dollar is also effected by the consumer's sense of crisis leading to the all-time high speculative selling of dollars. This is one of the recent comments by Morgan Stanley's economist.
c. Central banks for many countries have kept their foreign-exchange reserves in the dollars. China alone seemed to have close to $1.4 trillion in reserves followed by Japan with $1 trillion. Imagine what can happen to dollar if all these countries think about cutting their losses and dump their dollar reserves.
d. Many countries, more importantly Gulf countries had been asked to peg their currencies by virtue of buying dollars. This would not let the Gulf currencies appreciate and US would still been able to buy the OIL in almost same price for years. But now, with dollar weakening, Gulf countries are finding it hard to curb their inflation and they would also like to change their exchange-rates; especially those countries whose currency is pegged against a basket rather than dollar alone.
So, there's more to dollar-decline than mere currency depreciation. I think American policy makers are smart enough not to let the dollar crash. I also think that other countries would also do their jobs to help the American's policy makers.
Outcry remains same...SAVE the Dollar!!
~ Navjot Singh Sohanpal
Dec 4, 2007
Investors enjoy IPO Blitzkrieg
Greetings once again. Apologies that I was away for some time but it was festival season in India and it is the best time to invest in yourself and your family.
Hmm...talking about investments!! For last few years, Indian stock markets have seen blitzkrieg. If we just go by 2006's data, India had the 8th largest volume of IPOs in the world with Indian companies raising US$ 7.23 billion in the domestic stock markets. 2007 data is yet to be released but it's anybody guess that 2007 will be bigger and better than the previous one. As per NSE website, in 2006, 73 companies raise funds through primary market by launching the IPOs and in 2007, 86 companies have already raised funds and we still have one full month to go.
Raising money is good for business growth, expansion and diversification. But in recent past, it seems to me that some IPOs are being filed just to raise money for the promoters and the primary stakeholders. It seems to be easiest route to take some portion of the company to the public, dilute the promoter's stake and in result, hefty cash flows in to the promoter's bank accounts. FIIs, Corporates and even retail investors have such a frenzy over the recent IPOs that companies have been asking for higher valuations and still the issues are getting subscribed 30+ times.
One of the classic example seems to be much touted Reliance Power IPO from ADAG group. Their company Reliance Energy is already bidding for good number of projects, sitting pretty on investments by retail, FII and DII investors, holding on to huge cash reserves of Rs 9000 crore. God knows why they wish to rush to stock markets once again to raise Rs 2 billion so early. They could raise this money later as well when they will have visibility into their UMPP projects, which seems to be sole motive of Reliance Power. I really don't know what is it that they can't do within Reliance Energy that they want to create another arm Reliance Power when the UMPP leg hasn't even started their operations. Typically, a company creates separate arm when the arm has done enough and calls to be a separate entity. Now a days, companies live 2-3 years ahead in future.
Whatever, IPO market remains hot. Frenzy will continue to be seen among all kind of investors for all kind of IPOs. Keep raising chunks for yourself and help few Indians to feature on the "Forbe's Richest people in World" list.
~ Navjot Singh Sohanpal
PS - I will be investing in BGR Energy even though asking price seems beyond valuations ;-)
Hmm...talking about investments!! For last few years, Indian stock markets have seen blitzkrieg. If we just go by 2006's data, India had the 8th largest volume of IPOs in the world with Indian companies raising US$ 7.23 billion in the domestic stock markets. 2007 data is yet to be released but it's anybody guess that 2007 will be bigger and better than the previous one. As per NSE website, in 2006, 73 companies raise funds through primary market by launching the IPOs and in 2007, 86 companies have already raised funds and we still have one full month to go.
Raising money is good for business growth, expansion and diversification. But in recent past, it seems to me that some IPOs are being filed just to raise money for the promoters and the primary stakeholders. It seems to be easiest route to take some portion of the company to the public, dilute the promoter's stake and in result, hefty cash flows in to the promoter's bank accounts. FIIs, Corporates and even retail investors have such a frenzy over the recent IPOs that companies have been asking for higher valuations and still the issues are getting subscribed 30+ times.
One of the classic example seems to be much touted Reliance Power IPO from ADAG group. Their company Reliance Energy is already bidding for good number of projects, sitting pretty on investments by retail, FII and DII investors, holding on to huge cash reserves of Rs 9000 crore. God knows why they wish to rush to stock markets once again to raise Rs 2 billion so early. They could raise this money later as well when they will have visibility into their UMPP projects, which seems to be sole motive of Reliance Power. I really don't know what is it that they can't do within Reliance Energy that they want to create another arm Reliance Power when the UMPP leg hasn't even started their operations. Typically, a company creates separate arm when the arm has done enough and calls to be a separate entity. Now a days, companies live 2-3 years ahead in future.
Whatever, IPO market remains hot. Frenzy will continue to be seen among all kind of investors for all kind of IPOs. Keep raising chunks for yourself and help few Indians to feature on the "Forbe's Richest people in World" list.
~ Navjot Singh Sohanpal
PS - I will be investing in BGR Energy even though asking price seems beyond valuations ;-)
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