"Occupy Movement"

lets talk about the best names that come in the mind of any finance guys: lehman brothers, morgan stanley, j p morgan chase , federal banks etc..why i told this because all these financial behemoths belong to United States. But, if one looks now at US,an important term come which recently spread like a wild fire in the country. " The occupy movement" . people are frustrated about their financial security ,for which they call 99% insecure. Unemployment,collapsed promisses of obama government,financial insecurity paves the way towards yet another financial crisis like of 2008. Occupy Movement spred like a wild fire.

greek debt crisis.. basically how it happened, here comes the story behind by mr thinker.....

Before starting the Greek story, lets us unwind the series of events in Europe :-
1. adoption of euro as a currency by greece. The European union is controlled by european cental bank.The countries enjoy debt at lower interest rate than what is prevailing in the market.
2. reckless spending by greece government , huge amount of loans and government spending on the development causes havoc in the market. the debt to GDP ratio ,since 1993 is above 100 %.
3. Involvement of goldman sanchs in greece financial market. Goldman sachs introduced complex swapping of different derivatives in various markets.
4.lack of faith in investors who want to invest in the greece market.

Chain of events............

Greece Debt Crisis started majorly after October 2009 when the new socialist government, led by Prime Minister George Papandreou, revised the estimate of the government budget deficit for 2009, nearly doubling the existing estimate of 6.7% of GDP to 12.7% of GDP. This seriously questioned the ability of Greece to repay its debt. the status of "JUNK" by three rating agencies(moody's,S&P,Fitch) also added fuel to fire.

Rescue plan:-

Since after the crisis, papandreou govt introduced many norms and reforms in the government arena. but,these steps does not bring confidence in the investors.
The European union came out with the bail out plan of more than 100 billion euros for the Greece. They also vowed to take tough financial regulations against Greece and piigs countries.
America is also taking keen interest in the Greek crisis as European union is its largest trading partner. imbalance in euro currency may lead to trade deficit to USA.

the business of credit rating agencies

world financial market ,in today scenario, much depends upon world rating agencies. the three rating agencies which dominated the ratings (AAA,AA etc...) are moody's,standard and poor's (earlier called standard statistical)&fitch (owned by fimalac). After downgrading of us rating by S&P,eyebrows is being raised on the rating agencies. the credentials of their rating is being questioned. Today, the credit rating agencies are not following the buyer model which they did in early 70s.an important to note is that all the rating agencies belong to publisher copanies like mcgraw hill. the person behind the rating are not financial expert but common clerck who do daily routine work and withought analyzing the bond health in terms of ytm face value, premium to discounts, its risk level ,the rate the bonds. credit rating agencies are deeply entrenched into the finacial world market. they need proper government regulations prior to rating.A rating is essentially an opinion and is fraught with caveats galore: Standard & Poor’s warning at the end of every rating- “any user of the information contained herein should not rely on any credit rating or other opinion contained herein in making any investment decision” . do not you think it is an irony in itself.

lonliness

i am in my collage hostel alone. i am with myself. no body is here. i do not know how i can sense this time. but, this time is of different nature and i am sometime fully annoyed and some time fully enjoying. sound of cricket and sound of other insects ....
what is life. sometime i think it is not the daily hustle and bustle of the days . it is full of nature and full of energy. i am revitalizing myself . i want to write as i enjoy writing but i hardly get time. i am on a mission as i know i have to put in much effort. i have to give my best. life is not same always. form collage to tce to mba , i had made a long journey in this 3 years. lots of pm, lots of sites and lots of people . there is a fight everywhere. i must know myself and i must know myself.
life is a journey. i had achieved a lot and i have yet to achieve a lot.