government borrowings

How government borrowings affect aam aadmi. For the development project and subsidies , government need money.For money,governmnet go for borrowings. The government will incrase the tax and also the base. More taxes led to less liquid money in the pocket of aam aadmi. Less money will affect their spending pattern. people will start spending less . This will lead to less consumption and less production also. It may cause slump in growth. Government fiscal policy of increasing the tax slab from 1,80,000 to 2,00,000 will however,help the indian people to have more money with them. Government also told to decrease the fiscal deficit from 5.9 % to 5.1 %. that means,less subsidy this year and more taxes .It can be seen that service tax has been raised from 10 % to 12%. the government is also considering including transfer pricing in the corporate sector. Regarding transfer pricing structure, please wait for my nest blog which i will publish soon.

financial trends in india post budget

current financial trends in india is highly volatile. Post budget 2013, the Indian service tax structure has been raised from 10 % to 12%. The budget focuses on transfer pricing and tax on mergers and acquitisions.However, the 23rd march,goldman sachs report shows some signs of recovery for indian inc and the share market will revert in the 3rd quarter. the Global market is recovering .US is recovering and european market is also recovering from greece debacle.The current indian scenario is showing signs of recovery. After 3 weeks of stocks showing downturn, the infosys and tcs showed some signs of recovery in terms of 4 to 5% . The Indian central bank also given signal of policy cuts in the recent monetary review. The government recent rajeev gandhi invetsment plans will add millions of dollar to the investors. The stable government in UP also helped the india to come up with its current debacle. Wall street is bouncing back. the overall economic view is somewhat comeing out of its nightmare .

"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.

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.