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.

125 .... technology and science ... connect the dots

How a technocrat, an industrialist, an automobile engineer connect himself from 125? Seems very awkward, right! What is this sentence all about? But, think! Ok, I will help you. Lets start with Coca cola, Mercedes Benz, Bike industry,Bosch systems. What is in their common. A very thin line . A number , multiple of 5, which , hardly anyone notice in this world.
Yes, I am talking about the 125 years of their technological innovation which led them to their current position. Take the case of any big technological players in the world, they all have either completed 125 years of their existence or their stupendous progress in this world.
Take the case of coca cola. The secret recipe that lists the ingredients of every bottle of Coca-Cola is a thing of legend. It is often described as one of the best kept secrets in the world, people around the world says that few people knew about the formula. Some told that it is kept deep within Coke ‘Atlanta, Georgia facility and armed guards keep vigil for 24 hour a day.
Of course, while for fun, all of these stories are too implausible to be true. There is no way a company can spent millions of dollars in keeping the formula secret. Importantly,Coke is made of different ingredients in different countries (example: in Germany, it uses cane sugar; in America, it uses corn syrup), there’s no such thing as a universal secret recipe.
In spite of all this, It is pretty impressive that after around 125 years, the secret recipe to Coca-Cola has finally been published by Ira Glass and his cohorts in the American Life, a (fantastic) weekly radio program on Public Radio International.
Hmm…after a hundred years of secrecy, you would expect the secret ingredients to be pretty esoteric, but in actuality, it’s all stuff you might have in your kitchen, including: alcohol, orange oil, lemon oil, nutmeg oil, and cinnamon. Seems quite interesting! With constant innovation and mixing of basic ingredients, coke not only sustain in the market but, became a market leader also.
Bosch Group, world leader in automotive segment...
They are celebrating their 125 years of fascinating existence as well as the 150th anniversary of its founder's birth in 2011. On Nov15, 1886, Robert Bosch established his "Workshop for Precision Mechanics and Electrical Engineering" in Stuttgart, Germany, thus, laying the foundation for what has become a leading global supplier of technology and services in automotive and aviation segment. According to Peter Marks, chairman, president and CEO, Robert Bosch LLC and member of the Bosch board of management, Bosch's 125 years of success is being driven by innovative solutions that enhance the quality of life, their dedication and commitment towards their customers. The Bosch Group comprises Robert Bosch GmbH and its more than 350 subsidiaries and regional companies in over 60 countries.
I think now coca cola and bosch , different players in different business arena have one thing in common,125. But, more players are in the pipe line.

Benz……..Yes I am talking about Mercedz benz…
It was 125 years ago from 2011; Carl Benz taught the world to play, as he filed an application in Berlin for a patent on his three-wheeled motor car.
However, the automobile never turned up and gone out of style. The interesting fact is that it was considered the official birthday of the automobile. Carl Benz once said “The love of inventing never dies”. Mercedes-Benz has, therefore, remained true to these guiding principles for all of those 125 years. The spirit of innovation is one of the key driving forces, and is firmly rooted in its corporate culture.
The point here is almost all the innovations in this world that has happened took almost a century to grow and flourish. Take Tata group, which is moving slowly towards its 125 years of existence. The group with 90 operating companies in seven business sectors having total revenue of $83.5 billion started with a steel mill in 1905 in Jamshedpur.
The important point to think is that for a company to become global in operations and diversification, they need to evolve from inside. It surely takes a huge amount of time and 125 suits it the best.

corruption and economic progress

India is a land of unity in diversity. Foreigners who visit the indian cities always think of growing india , developing infrastructure and financial stable markets. However ,the pic is not rosy on the other part. Still, poverty and unemployement looms large at the national scale. Take the case of china,since 1990, shanghai come out of the shackles of socialism and created manhatton of east for himself. They are having city and town planning museum. With growing intellectual capital, the infrastructure growth plays a crucial role. Some statistics about China and India, drawn mainly from the World Bank and the United Nations, are relevant here. Life expectancy at birth in China is 73.5 years; in India it is 64.4 years. The infant mortality rate is fifty per thousand in India, compared with just seventeen in China; the mortality rate for children under five is sixty-six per thousand for Indians and nineteen for the Chinese; and the maternal mortality rate is 230 per 100,000 live births in India and thirty-eight in China. The mean years of schooling in India were estimated to be 4.4 years, compared with 7.5 years in China. China’s adult literacy rate is 94 percent, compared with India’s 74 percent according to the preliminary tables of the 2011 census.
Still, we are only madly following the economic growth. Financial inclusion and sustainable growth is also needed for the overall economic growth of rhe nation.
The Slew of corruption tarnishes our global image . The whole nation is put on shame when our telecom minister, top executives from top mnc indian companies caught in the national 2g scam. This is really a bane for us.
We must take vow to lift our image .

indian nuclear deal . why it happen so fast?

indo us nuclear deal led india to start procuring nuclear fuel for its nuclear plant. however, the way it has been introduced in the parliament, then cash for vote scam ,wikileaks etc cause havoc for the upa gov. Apart from that , the nuclear reactors that has been imported to india are in the testing condition. these nuclear reactors are yet to be operated in the other european countries.It is only after fukushima nuclear disaster , indian nuclear bosses think about the tsunami or earthquake . why they had not considered these issues before. india is not having its central safety plan. we still depend upon foreign agencies for industrial safety audit. The drive to build clean nuclear energy even without proper bidding, proper allocation, untried instruments only create some sort of corruption in the indian energy sector. The nuclear regulatory authority ie atomic energy regulatory board also come under department of atomic energy . All these agencies must take into account the very benefits of indian citizen.

indian labors and their soceital condition

Indian labors comprises of mainly women and children. They need utmost attention as they have to be brought to the Indian mainstream. According to ilo, domestic work ranges from 4 % to 20 % of the current total work force in the developing world. This section of the society is undervalued and underpaid and overworked and unprotected. Indian govt is taking necessary steps to bring these people to the mainstream. Some steps of Indian govt like enforcement of minimum wages, no frills account by the banks etc are like a drop in the ocean.
The remedial steps taken by govt is not enough to bring these section of society to the mainstream.
govt must understand that in order to achieve developed status by 2020, govt must consider seriously about their dilapidated condition.

tips to decrease infaltion, can be done only by rbi .

rbi controls the indian economy by introducing the concept of repo rate and reverse repo rate. repo rate:- it is the rate at which banks borrow from rbi and reverse repo rate is the rate at which rbi lends money from banks. an increase in repo arte and reverse repo rate means an increase in interest rate which causes lower demand and which in turn causes lower inflation.
cash reserve ratio:- banks has to keep some money with rbi as per this policy. by increasing crr, banks has to keep more amount of money with rbi . this results in lowering of liquidity in the market. lowering of liquidity in the market means less money to borrow or to invest which means less demand which finally causes decrease of inflation.
higher growth means higher demand for credit which means higher inflation. rbi regulate the indian market by regulating the repo rate and reverse repo rate,crr and slr(slr does not mean self loading rifle but statuary liquidity ratio).
In order to sustain indian economy, monsoon this year play a vital role । Al nino effect which was prevelant during 2009 will not happen this year. Strong monsoon result in good production during kharif and rabi seasons which will bring huge agricultural prduction which again will boost the demand and finally the prices of food will go down leading to decrease in inflation.