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Archive for August, 2013


India Stands on Gold

Even as the Indian capital outflows and current account exodus may be threatening to shut down the economy altogether (except for the threeimages oil companies that received a last ditch USD infusion from the RBI yesterday), the central bank is planning and strategizing. And it appears to have come up with more of precisely the same that has led it to its current unprecedented predicament: prevent the population from converting their wealth into hard money, i.e., gold. But while the government’s attempts to impose capital controls on gold purchases have been well documented, the latest foray is just a headspinner.

So let’s see: dumping India‘s gold kicks the can on the Indian economic collapse and current account , if only for a few months, and kills the price of gold again. Why, this is a slam dunk plan as far as the internal brotherhood of banksters is concerned. Which is why it will happen sooner or later. As for the popular outcry against this move, why cares? It is not as if the popular opinions matter when bankers make decision.  Continue reading

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Books are the best Friends

Too many things said and being anticipated about the Indian Rupee, Indian Economy, Indian Politics that what does India Needs , the food imagessecurity bill , the Current account deficit and the rising prices of the gold. It’s like the puzzle in India is that of finding the middle road, between Gotham City on one hand (a murky world of corruption and criminality) and Jurassic Park on the other (with socialist dinosaurs destroying the economy). Pessimists about India might say that if the goons won’t get you, the dinosaurs will.

Taking a break focusing on the favorite business books that are also fun reads? They can’t be boring, must be Business or Investing related. They also should be informative and/or educational as well.

Here are 10 random business books that I think are especially readable:

• Lords of Finance by Liaquat Ahamed:  “It covers a 50-year period from before World War I and leading up to World War II. Even if you’re not interested in finance, it’s a great read”  Continue reading

Shadow Banking

The Topic is not new but the confusion still prevails to many, In the past have already done 4 post on it , the short link been shared below the article.images

There is much confusion about what shadow banking is. Some equate it with securitisation, others with non-traditional bank activities, and yet others with non-bank lending. Regardless, most think of shadow banking as activities that can create systemic risk. This column proposes to describe

shadow banking as ‘all financial activities, except traditional banking, which require a private or public backstop to operate’.

Backstops can come in the form of franchise value of a bank or insurance company, or a government guarantee. The need for a backstop is a crucial feature of shadow banking, which distinguishes it from the “usual” intermediated capital market activities, such as custodians, hedge funds, leasing companies, etc.  Continue reading

Nassim Taleb’s contribution to the world of finance are two fascinating concepts — essays really — subsequently expanded into book length. The imagesfirst is Fooled By Randomness: The Hidden Role of Chance in Life and in the Markets, which describes the tendency of investors to find patterns where none exist, and to attribute to skill that which might be better credited to luck.

His second book is a corollary of sorts, almost the inverse to Fooled by Randomness: The Black Swan:

He’s vocal about his displeasure with most economists, academics and journalists. He’s usually wearing black. And he’s usually seen not smiling.

His latest status fascinated most of the people tricks to have a great day :

1) Smile at a stranger,  Continue reading

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