The Investment Thread

Prasham

Armchair Traveller :(
...Americans are getting lazier, stupider and fatter; and want government to take care of them...

This is direct result of desk jobs or no jobs. If you would have kept manufacturing the necessary things, this wouldn't have happened.

By buying local made things, your money is transferred to a fellow american which he will utilize sooner or later and go to another American. This cycle would keep going on if you restrict yourself to buying locally made things.

If you buy foreign made things, your money is transferred to a foreigner. Once a foreigner makes money he will be interested in making more profit and sooner or later will hike his rates by any means. This will make your fellow american what you've said above. Over the time they will loose their capability to work and when foreign companies will start hiking their prices, you will be in soup.

In India we say it "Dhobi Ka Kutta Na Ghar Ka Na Ghat Ka" :)
 

Big Daddy

Super User
Is it just me or does the world gold council seems to be promoting gold a bit too much to the retail customers these days, which at least in my mind means, that the bubble is about to burst!
I think you are correct. This happened to internet stocks in late 90's and real-estate around 2005. People pick an asset sector and keep promoting it till the bubble gets burst. Experienced investors stay away from latest flavor of the day or year for that matter. Diversification helps. I am staying away from gold since 2010 even though gold in my portfolio has performed well.
 

MudgilSushil

DC Junkie ....
Re: Announce Anything here

time for usual rant

RBI hikes key rates again; home, auto loans set to get costlier - The Times of India
MUMBAI: The Reserve Bank of India (RBI) on Tuesday raised the repo rate by 25 basis points to 8.5 per cent. The rate hike is the 13th since early 2010 but the RBI said it was likely to hold off on further increases as it expects high inflation to ease beginning December. The central bank also deregulated savings bank deposit rate with immediate effect.

The hike will make home and auto loans costlier with banks likely to pass on the hike and put further pressure on economic growth.

With food inflation entering double digit figures and headline inflation almost touching the mark, most analysts did feel the central bank would increase repurchase rate by 25 basis points to 8.50 per cent.

The RBI has hiked key policy rates 12 times since March 2010 to control inflationary pressure. However, that hasn't helped in bringing down inflation much.

The central bank hiked repo and reverse rates by 25 basis points each to 8.25 per cent and 7.25 per cent respectively last month.

Food inflation rose sharply to cross double digit levels at 10.6 per cent for the week ended Oct 8 as against 9.32 per cent in the previous week. The headline inflation based on the wholesale price index was recorded at 9.72 per cent in September, according to the latest official data.

Inflation has remained almost near double digit since January 2010, despite an aggressive monetary tightening by the central bank and the claims of a series of fiscal measures by the government.

However, the rate hike has shown its negative impact on the economic growth. Industrial production has slowed down considerably in the past few months. It was registered at a sluggish 4.1 per cent in August rising a bit from the 3.8 per cent seen in July -- its lowest in almost two years.

GDP growth slowed to 7.7 per cent in April-June period, the weakest in six quarters.

With rising cost of inputs and high interest rates, industrial output is likely to remain subdued in the coming months.

According to a recent survey by the Confederation of Indian Industry, business confidence, especially among smaller firms, has declined in recent months.

The CII's quarterly business confidence index has declined by 2.5 per cent in the third quarter of 2011-12 as compared to the previous quarter.
 

Yogesh Sarkar

Administrator
Re: Announce Anything here

Don’t see anything wrong with what RBI is doing, they need to curb inflation and that is the only way they can go ahead and do that. Because at the end of day, as long as inflation is rising in double digit, 8-9% growth isn’t going to make much of a difference and would only end up increasing class disparity even further!

What really needs to be done is putting an end to speculative trading in essential commodities, which isn’t something these economists or analysts would talk about neither something that Politicians funded by companies and businessmen would do anything about!
 

MudgilSushil

DC Junkie ....
Re: Announce Anything here

Don’t see anything wrong with what RBI is doing, they need to curb inflation and that is the only way they can go ahead and do that. Because at the end of day, as long as inflation is rising in double digit, 8-9% growth isn’t going to make much of a difference and would only end up increasing class disparity even further!

What really needs to be done is putting an end to speculative trading in essential commodities, which isn’t something these economists or analysts would talk about neither something that Politicians funded by companies and businessmen would do anything about!
hehehehe you are thinking like a true economists now. what will happen to the purchasing power of people with interests out of roof. so you mean that to curb inflation, force people to stop buying anything in the market. Naturally when no body is buying , inflation will be down . instead what they should do is, stop the black marketing , put their house in order, control the govt spending ...
 
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Yogesh Sarkar

Administrator
But RBI cannot do that! And since Government is unwilling to do what needs to be done, RBI is left with little other choice than to exercise the only real option and power it has in its hand!

As far as controlling government spending goes, that is always a bad thing to do. Because it makes people as well as the government, more and more dependent upon private players, who are only interested in milking the system!
 

MudgilSushil

DC Junkie ....
Needless to say , in the process RBI is Butchering the middle class, some body who will slog his whole life to do away with a 25 lakh loan and end up paying all most more than double the original cost and they add to vote bank politics they are giving 1 % subsidy to all those whose load amount is less than 15 lakh. when a small house costs u north of 20 lakhs...
 

Yogesh Sarkar

Administrator
Bhai it is also the middle class, which is responsible for the high price of housing in the first place, because a lot more people are buying houses as a form of investment and not for their own living needs!

Rich squeeze the middle class, who in turn squeeze the poor. The cycle goes on and all that one cares about is his/her needs, and then we complain about others not caring about our needs!

My 2 cents, kick the FIIs out of our equity and commodity market, make sure there is enough to eat for at least the next 2-3 years for the whole country, before things are allowed to be exported and ensure that real development and production of equipment, including telecom, computer systems and other technologies is done in our own country, at the same time get the government to increase infrastructure spend to ensure not only infrastructure is prepped up, but also so that the development reaches grass root level as well and no one is left behind!

The more people we can add to the middle class each year, the more there will be a demand for things which are being produced in our own country, ensuring better profitability for the companies and more tax collection for government, translating in to higher salaries for the working class and more opportunities for entrepreneurs.

At the same time, thanks to large reserves of essential commodities, food inflation isn't allowed to rise too steeply, thus translating into real growth, rather than a rat race between inflation and growth, where the inflation is winning at the moment!
 
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J.Ravi

Petrol Powered + Diesel Driven
I bought 26 shares of Coal India @ :r: 328.95 each at the muhurat trading a few hours back today.
 

Big Daddy

Super User
My 2 cents, kick the FIIs out of our equity and commodity market, make sure there is enough to eat for at least the next 2-3 years for the whole country, before things are allowed to be exported and ensure that real development and production of equipment, including telecom, computer systems and other technologies is done in our own country, at the same time get the government to increase infrastructure spend to ensure not only infrastructure is prepped up, but also so that the development reaches grass root level as well and no one is left behind!
Things that sound noble rarely work. When you provide resources to humans for nothing they breed to exhaust the resources provided and ask for more. Besides why should government feed people? Just because some is born that does not mean that s/he becomes government's responsibility.

I am a hard core capitalist and free market person, so I know my comments will be rarely popular, but that is a reality and it does suck!
 
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