India is passing from an interesting phase, you can hear these famous words on everybody mouth Modi, Raghuram Rajan, Rupee, Inflation and not to forget the Onion.
Was just looking on the inflation numbers and realized the food prices are up by 18.2% on the year, and this was led by a mind-blowing 245% annual rise in onion prices.
Sharing some of the crazy things we’ve seen around India in the aftermath of soaring onion prices.
- Onion Groupon Deals: Groupon India offered onions at Rs. 9 for a kg, in response to surging onion prices, and the offer caused the site to crash. This represented an 85% discount to a market price of Rs. 60 at the time the deal went live. It was the first time Groupon India had a deal on onions. Continue reading “India and the Onion”
Yesterday was going through an article on Bloomberg that How UBS Could Survive a Guilty Plea in the Libor Scandal, reading forward the article says the settlement may include $1 billion in fines, and the New York Times adds that a guilty plea on criminal charges may also be part of the deal. That second piece is big news: It would make UBS the first big bank to plead guilty in more than a decade.
I did post almost a year back, but when I see today the scandals are now more in public compare to last year and the post holds true to the words. They are much more bigger now Continue reading “Rogue Trading or The Rogue Banks”
Economic relations in the euro zone amount to a game of chicken. Like car drivers aiming directly at one another, governments are challenging their counterparts to flinch first and give in. Unfortunately, the economic study of strategic behavior — also known as game theory — suggests that if you play chicken too many times, you will eventually crash the proverbial car.
Few months back I did a post Italy was in strong position according to the game theory Continue reading “The Euro Crisis – Game theory”
So the movie Boiler Room was really about Wall Street investment banks all along? Greg Smith’s book “Why I Left Goldman Sachs” comes out few days back. Here are a few quotes from the script.
“Greg Smith: Goldman Sachs, and other firms on Wall Street, started learning how to use the information they were getting from their clients, in order to bet with their own money. At times, betting against their clients. And you know, that’s a real changed mentality from how do we do Continue reading “Why I Left Goldman Sachs: Former VP Greg Smith”
Was going through derivative material universally available and find some interesting facts the (TBTF) Too Big To Fail get Too Bigger To Fail. The top 5 banks of the world holds 97% approx $221 trillion derivative outstanding.
$220 trillion is more than enough for the world to collapse in a daisy chained failure of bilateral netting (which not even all the central banks in the world can offset).
Time and again history has repeated itself unregulated derivatives are prone to catastrophic failure. And yet, nearly four years after the crash, Continue reading “Derivatives Monster”