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Insight: "Top 10 Sporting Moments of the Decade" deleted from your view.
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Insight: "Top 10 Sports Persons of the Decade" deleted from your view.
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The state of the financial sector and whatever is being reported by way of growth in a few economic parameters in almost every developed country, especially the U.S and U.K, are linked to government and central bank support in different forms. Remember such support is effectively paid for by the citizens, especially tax payers.  Intervention of historic magnitude: The overwhelming importance of this aspect to trends in the financial market over the past few months was touched upon briefly last month in the article `Play the liquidity-driven rally with care’ (Please refer The Wise Investor August 2009 available at www.sundarambnpparibas.in ).  The role played by the government and central ...
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Mathew Cherian
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| 2 years ago
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To explain a little further about how the American financial system works, the federal funds are deposited the Fed reserve at the major money center banks from where the smaller banks through interbank operations create the liquidity for their...
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Mathew Cherian
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| 2 years ago
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I probably should explain a little further as to how the American financial system works. Government Office of Budget(GOB) sets the limits on spending and they pass it on to the Treassury department who has to come up with the money. They sell...
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Jyoti Rath
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| 2 years ago
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Nice article sir. What I feel is, in the development of financial markets, one observes a lack of focus, on the part of those involved, including the financial intermediaries that have an interest in the potential business opportunities, on the...
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Trends: "Pointers to the financial sector " deleted from your view.
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Let there be no doubt that the ongoing rally in India is driven in a massive way by a surge of inflows from Foreign Institutional Investors (FIIs). Participation by mutual funds and insurance companies has paled in comparison. As a result, this market has been beneficial for speculators, traders and high-risk taking retail investors.This pattern is no different from what we have witnessed in the past in India. FII flows have recovered by about $ 10 billion from the lows of 2009. They had been net sellers of Indian equities to the extent of about $ 2.5 billion by mid- March,taking equities to a low for the year.Inflows from FIIs since then has been on an upward trend and is approaching $ 9.5...
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Narayan Seetharaman Thathai
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| 2 years ago
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Agree fully with the article. The recent drive in asset prices could see a reverse turn on liquidity dry up, tightening of intt rates on the back drop of increase in inflation. For India, the inflation could spiral especially in the back drop of a...
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Padmanabhan R
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| 2 years ago
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Nice work sir thanks for sharing , yes extra liquidity can heat up discrepancies in valuation to alarming levels if goes unchecked and later correction will dry up liquidity to grave levels. Easy credit and good return will attract speculators.
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suchita Ambardekar
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| 2 years ago
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Wonderful article ...and a very keen observation.....Vaidya, This means the that whole of this century we will be facing one bubble after another.This also means that in principally, the flow of the money into an asset class will give rise to a...
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Insight: "Play the liquidity-driven rally with care" deleted from your view.
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We have had a sharp bounce from the lows of March 2009 in a compressed period of about 45 days. A bear-market rally is underway across global markets. The decisive election outcome for India has, however, probably led to a situation where even when there are corrective phases in the ongoing bear market, Indian equities may not reach the lows of March 2009.We may be having a higher floor in place in India, courtesy the verdict of the people. The key question for investors is how to approach investing in the equity market. We examine this aspect with a quick snapshot of where we are in the worst economic crisis since the Great Depression of the 1930s to do a quick reality check. Macro backdro...
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Veejay Bhatia
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| 2 years ago
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Nice Insight! Keep posting such article at times, just to remind investors, not to chase even the rallies but grab the opportunities of investments on dips As Warren Buffett keeps saying: "Be fearful when people are Greedy and Greedy when others...
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Charles davison
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| 2 years ago
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I have a feeling that there is going to be big crash coming very shortly. All the recovery plans and Hype going on is just cosmetic.More common people are going to be trapped in share business. Pls be aware that market hasnt got up still.Its just...
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Insight: "Do not chase one or two big ideas" deleted from your view.
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The developed world is well on its way to facing up to an economy that will be shrunk in size in a manner unexpected by government, mainstream economy pundits, media and equity markets. It is clear that the ballooned scale of the economy that prevailed till about a year ago - on the back of low cost of money and excessive borrowing is not going to return for several years. If by chance, the massive liquidity being created across these countries works and the scale returns in the short-term, it will not be of a sustainable kind. The still-shrinking and eventual shrunken state of the economy is what is now being referred to as the `new normal’ by those who saw this crisis coming. This world o...
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S. Muralidharan
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| 2 years ago
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The emergence of plastic money has increased the public spending beyond proportions. Per capita debt of an average American was $100,000 in the year 2005. In an economy such as India, per capita income of an average BPL is less than Rs.100 a day,...
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Kumbakonam S Venkataraman
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| 2 years ago
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Thanks for reference Mr. Jacob Mr Vaidya Nathan has painstakingly analyzed this subject. The problem has attained such serious proportions as a result of financial indiscipline, encouraged by governments and some management pundits. The golden...
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Insight: "Life in a shrunk global economy" deleted from your view.
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Sentiment and liquidity in the equity market continue to be impaired by developments in the U.S, and increasingly, parts of Europe. India is not alone in the turmoil; it is, however, among markets that have lost the most in 2008 year-to-date. The phase of consolidation marked by high degree of volatility is likely to continue for the next few months till there is clarity that the worst in terms of news flow from U.S economy and global financial players is behind us. In the domestic context, the market has not taken kindly to the Rs 60,000 crore loan waiver announced for farmers in the budget by the Finance Minister, P Chidambaram. The fear is probably more about a fresh bout competitive pop...
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Esha Johar
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| 2 years ago
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Yes Mr. Vaidya...It was great to read your insight.you are very true. All the points you mentioned really became the real cause for the worldwide recession. The prediction of market depression and India getting least effected by it also became...
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Insight: "The Long Shadow of Global Linkages: Prediction made in 2008 holds true" deleted from your view.
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