Cash is Kingg
In the present economic scenario Cash is Kingg. The typical question which looms large in any entrepreneur's mind big & small is what is do now. To spend or not to spend. To do this project or not to do this project. Or in short to quote the famous lines of William S : " To be or not to be " in these times of course.
To quote the last line in a recent Newsweek article the world almost came to an end in 2008 . This epitomises the troubled times we live in. About 8 weeks back the phrase in every businessman's lip was " cautious optimism". Now 8 weeks out all of us ponders these 2 cliched words so much we are not sure if its "confused optimism" or " cautious depression"
Cash is down everywhere. Inventory is piling up. Finance has dried up. Market is uncertain. Can you think of a more toxic combo. All the makings of trouble ahead. The leadership both at the political & central bank levels are clueless at best.
Collective consensus was " crisis of confidence " leads to liquidity problems. More than Rs 1 lakh crores -( yes that is Rs 10,000,000,000,000 ) later neither the crisis has come down or the confidence gone up. Instead the crises has deepened and the confidence nowhere in sight.
The Fin Min is more engrossed in propping up the stock exchanges while the economic fundamentals are shattered. A stubborn gov. Mr Reddy was adamant about quitting pleas from all quarters notwithstanding. And the incumbent Subbarao seems to be nothing more than a text book economist. Reduce CRR and the usual stuff.
Now the media. Agreed media - print , air & the web are business - big business. But in the name of press freedom they simply feed the fear psycosys. Even routine retrenchments blown out of proportion. Falling one over the other to report bad news or distort to make it look bad. Even the elite business press in India needs some basic business education. Barring a handful of editors / reporters have no clue about what they are writing. Sometimes it appears full time journalists are no better than the freelancers / stringer who write for the suppliment. All said and done we talked outselves into this mess.
I have been actively following the US print media thru this crysis and shocked to find they discuss ideology. Less regulation more regulation less governance more governance etc. There is not a single coverage of the plight of the common man. The rogues of the financial markets are bailed out with amounts nearing a trillion dollar of tax payer money for fear of a systamic collapse while describing in finest of details how this systamic fraud was build up for over 18 years tracing it back to Ronald Reagan. What was Alan Greenspan doing all these years. While he shamelessly claims in typical bueracratic fashion that regulating housing market is not in the statute of Fed Reserve Board. Is presiding over the creation of such a mess is in the statute ? Finally there are but sporadic reference pinning the current meltdown to Alan
The present resurrection efforts are headed by Henry Hank Paulson a veteran Street hand. What do you expect him to do ? Understand the plight of the car dweller ? You are not so dumb. Once a Street hand for ever a Street hand. You cant think beyond The Street. So you know for him and the poor little Ben Bernenke bailing out the rogues is end all - save all.
To quote the last line in a recent Newsweek article the world almost came to an end in 2008 . This epitomises the troubled times we live in. About 8 weeks back the phrase in every businessman's lip was " cautious optimism". Now 8 weeks out all of us ponders these 2 cliched words so much we are not sure if its "confused optimism" or " cautious depression"
Cash is down everywhere. Inventory is piling up. Finance has dried up. Market is uncertain. Can you think of a more toxic combo. All the makings of trouble ahead. The leadership both at the political & central bank levels are clueless at best.
Collective consensus was " crisis of confidence " leads to liquidity problems. More than Rs 1 lakh crores -( yes that is Rs 10,000,000,000,000 ) later neither the crisis has come down or the confidence gone up. Instead the crises has deepened and the confidence nowhere in sight.
The Fin Min is more engrossed in propping up the stock exchanges while the economic fundamentals are shattered. A stubborn gov. Mr Reddy was adamant about quitting pleas from all quarters notwithstanding. And the incumbent Subbarao seems to be nothing more than a text book economist. Reduce CRR and the usual stuff.
Now the media. Agreed media - print , air & the web are business - big business. But in the name of press freedom they simply feed the fear psycosys. Even routine retrenchments blown out of proportion. Falling one over the other to report bad news or distort to make it look bad. Even the elite business press in India needs some basic business education. Barring a handful of editors / reporters have no clue about what they are writing. Sometimes it appears full time journalists are no better than the freelancers / stringer who write for the suppliment. All said and done we talked outselves into this mess.
I have been actively following the US print media thru this crysis and shocked to find they discuss ideology. Less regulation more regulation less governance more governance etc. There is not a single coverage of the plight of the common man. The rogues of the financial markets are bailed out with amounts nearing a trillion dollar of tax payer money for fear of a systamic collapse while describing in finest of details how this systamic fraud was build up for over 18 years tracing it back to Ronald Reagan. What was Alan Greenspan doing all these years. While he shamelessly claims in typical bueracratic fashion that regulating housing market is not in the statute of Fed Reserve Board. Is presiding over the creation of such a mess is in the statute ? Finally there are but sporadic reference pinning the current meltdown to Alan
The present resurrection efforts are headed by Henry Hank Paulson a veteran Street hand. What do you expect him to do ? Understand the plight of the car dweller ? You are not so dumb. Once a Street hand for ever a Street hand. You cant think beyond The Street. So you know for him and the poor little Ben Bernenke bailing out the rogues is end all - save all.
posted by YesYes at
11:05 AM
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