Thursday, August 22, 2013

Accounting fraud

RBI allowed banks not to make provisions for restructured loans for infrastructure loans. This along with tweaking in the bond loss accounting saved more than 1 Lakh crore loss in Indian banking industry this quarter alone

Apparently this is done to show(prop) up the bank balance sheets.

Shame on you guys. Why not removing the prudential accounting norms altogether?

Comedy by Economic Times

I read a interesting piece of view in Economic Times editorial few days back.After shedding crocodile tears about the fall in Indian currency in few sentences the newspapers says that

' we knew about this (collapse of rupee and markets) much earlier. But not to make people panic we did not write this in our newspaper. we have ethics blah..blah..blah..'

My comments

Most idiotic statement has come from times. We know times is interested party in propping up the bubble . The own artha property and are neck deep into real estate business also. Be informed that this newspaper always paints a rosy picture about the economy and had a huge role in propping up the real estate  bubble in the country. Many insuspecting news readers would have fell for the advertisements and recommendations given by the paper.

Remember with every monetary easing, this newspaper is used to write 'your home loan rate is coming down' even though the benefits are not passed on by banks. Now they are taking credit on both sides. There is a saying in tamil.

பேய் ஆட்சி செய்தால் பிணந்தின்னும் சாத்திரங்கள்...

Markets slap it on the face

RBI and government are working in tandem to rape the real savers of economy. To help a handful of people who get benefited from the banking system, they keep the entire Indian population to ransom by resorting to keep the interest rate artificially low for extended period for may be about 5 years now.

The system is screaming for rate hike but RBI is resisting the temptation to support the people who are in power. Also the government is successful in creating a section in media and as well as general public who can support rate cut. Most of them are idiots and few of them are interested parties who think that their real estate 'investment' will not lose value if the rates are cut. How pity?

Now yesterday RBI tried something and Mangoman thought that markets may rally for 1-3 days. But markets ( how cunning this animal is..) gave it right back at RBI and fell for about 2%. so now what?

Rupee is touching new low everyday. This is kind of record of sorts.

You have to read foreign media about the real damage to Indian economy.

wall street journal, economist, reuters etc are rapping india down. And many of them in the opinion that India deserve a downgrade. So what? WE WANT TO SAVE OUR REAL ESTATE GOONS. LET COUNTRY GOES TO HELL. am I right?

Wednesday, August 21, 2013

RBI is goofing up further :(

They say Raghuram Rajan is appointed as officer special duty to RBI. But the effects are not visible or shall I say it is working contrary to our belief?

RBI apparently expecting short term results decided to inject money again into the system (yes, the same Indian banking system which they think are punting in Dollar and thus eroding Rupee value) to the tune of 8000 crores. They panicked by seeing the short term bond yields going up. These guys will never learn the lessons.

They say Raghuram Rajan is inteligent and will do the necessary for the economy. But it seems he is panicking more than others.

Equity markets are shaky
Bonds markets are shaky
Commodity markets , the less said it is better

Raghuram Rajan should know one thing. He should not try to emulate Chidambaram's method of talking up the market on day to day basis.

As mango rightly predicted 2 days back, RBI allowed our banks to make adjustments in their bond portfolio so that they need not make provisions for 40000 crores loss they made in 1 month. long live Indian Banking System and RBI.

Now what next?

RBI, Can you save markets for 2-3 days due to this measure? Do you know, by this measures you are still accentuating the issues?

I wonder still nobody in this government is talking about over priced real estate which is the root cause of all the evils. But I salute the real estate brokers for the influence they have in the current establishment.

Sunday, August 18, 2013

Worst fears have come true

Few weeks back mangoman argued that government is looking for some scapegoat for all their mistakes. And they have zeroed in RBI governor Subbarao. This is confirmed now .

Yesterday Manmohan Singh said 'fresh thinking' is needed from RBI in monetary policy. My blood is boiling. He, his finance minister and the people who pays him ( the corporate mafia) all forced RBI & Subbrao into lowering rates and shamelessly now talking about fresh thinking.

Saving Asses of real estate brokers is the single point agenda of Congress and Manmohan Singh by opening his ugly mouth shows what is he.

“RBI was committed to inflation control, not because it did not care for growth; but because it cared for growth,”  Subbarao Said. 

This is like a slap in the face. But still I dont think corrupt stooges would understand the message.

Saturday, August 17, 2013

Bond Yields are rising both locally and in abroad

US 10 year bond yields at closing high of 2.83 and as per technical studies it is poised to touch 3.5 soon. This is going to cause much problems. FII will run for cover from Indian markets as US yields are much better than Indian yields after adjusting to hedging costs.

Indian stock crash yesterday is a precursor for the things to come.

When Mangoman was begging for rate hikes he was ridiculed. Now the history repeats and idiots who decide economic policies are made to eat humble pie. UPA screwed the country handsomely and almost 30% of Indians investing in real estate to neck deep and praying for rate cut. All businesses are involved in real estate and praying for rate cut. My dear stupids, if everybody want to sell the plots and flats at higher prices, who the hell is going to buy from you?

Who is earning nowadays? Do you know for the past 2 years how many jobs created in the country? Do you know 70K engineering seats are vacant in Tamilnadu alone?

Subbarao's parting time bombs starting to burst.

1.  The repo limit controls indirectly increased the rates. Now it is matter of time to increase rate really.
2.  The capital controls measures last week is the last nail in the coffin.

Thank you Dr.Subbarao, you have given back to the government in the same coin. Let us hope the excesses are swiftly blown away.

Next in line. Real Estate of India. The government is hell bent to save the brokers community and now it is time for them to face the hard realities of life.


Wednesday, August 14, 2013

WPI shoots up where is ready to sell wife lobby?

Now since the WPI shoots up and currency is on the verge of collapse the 'ready to sell wife for a rate cut' lobby is conspicuous by their absence. These idiots are responsible for the collapse of economy by forcing the RBI to cut rates or preventing the RBI from raising rates. Now seeing the economy collapsing these idiots are absconding. This is the sorry state of affairs in mango republic.

On one hand RBi still is giving money to banks at 7% (repo) and paying banks at 12% ( latest cash management auction). It looks outright idiotic. The system is screaming to raise interest rates. To satisfy some selfish crooks RBI is not raising the rates.

Government and RBI joined hands to destroy the country. The main opposition party inspite of knowing all this mismanagement keeping mum because they know the impending collapse will help their cause.

Today WPI increases by 1% points than last month and Rupee closes at lowest point. Government and RBI has come up with some panic measures which will be brused aside by markets on Friday. Mangoman again reiterating his view.


Sunday, August 11, 2013

Comedy By Indian Government

Government it seems is resorting to talk up the markets. The idiotic approach which caused the huge problems to the country refuses to go away.

Government few days back stopped releasing GDP and Inflation data duirng market hours fearing market crash. The reason put forward was that the government want to avoid volatility in stock markets. But clever people understood what government is trying to do. The government went on to release feel good news ( or the news they think is good) during trading hours so that markets go up. Markets did not care a s*** and fallen hugely for the past few days.

Now again Monday government will announce some measures during market hours it seems. I love to see it to be bombed.

Another news is that sebi crackdown on bear cartels. It is ROFL comedy.  With the economy in deep shit, why do bear cartels sell your stocks? what are your MF's doing? Will you investigate that also..

Government is either trying to cheat public or barking at the wrong tree

Saturday, August 10, 2013

What India will do next?

3 billion dollars foreign exchange is lost within a week from RBI's kitty. The problem is very serious. This is evident from the fact that the RBI is trying to drain the liquidity from the system. The 22000 Cr auction is necessitated because of this fear.  Now also all is not lost. Raise the Repo and CRR by 2% each. Everything would be solved.

However, I think the government next course of action would be:

1. Banning short selling in currency
2. Banning short selling in equities
3. Can snatch the dollars from traveller coming back from abraod at airport itself :)
4. Passing a law to make car purchase compulsory for all Indians ( Aadhaar card would be used for this). Government want poor car companies also to survive.
5. Another scheme for compulsory going for housing loans and apartments is under purview of Chidambaram.

Kangaroo Court Act by Indian Government

One could not stop laughing after seeing the news which says that the government puts onus on settlement disputes on NSEL Promoter.

Robert Vadra is right in saying that it is a banana republic and we all are mango people. How the NSEL promoter is responsible for settlments.  Settlement is the responsibility of NSEL.  I am not supporting Jignesh Shah. But the point is the manner in which government spoke is interesting. They act as if they are conducting a kangaroo court wherein they settle issues. Whatever may be the issue in NSEL there should be set procedures for any eventualities. What government can do is to strengthen the processes and reduce unnecessary speculations.

If the government itself is speculating hugely and actively encourage speculation for past 10 years then who can save the country. Government lost the moral authority to preach, so that they resort to kangaroo court methodologies.

Tuesday, August 6, 2013

It's celebration time folks

The country which is for the real estate by the real estate to the real estate is busting now.  RBI is helpless.  The corporate mafia who misguided RBI is speechless. It seems the Real Estate brokers are still not aware what is going to hit them. They will know shortly.

Corporate mafia is using Infosys Kris Gopalakrishnan as a front to push their cheap and dirty trick of asking for a rate cut. Kris Gopalakrishnan is a soft guy fell prey to that and where ever he goes he asks for 100 basis point repo cut and 75 basis point of CRR cut. I heard that he inadvertently tells this during his sleep also. My question is since IT or Infosys has no business about rate cut it is better for him to keep quiet as this shows him in poor light.

Rupee crashes today and Nifty index broke down today. Anytime we can see a down circuit in Indian share markets.

Now Subbarao has one last opportunity to restore his credibility. Raise repo rate and CRR by 100 basis points each. In the process you will kill two birds. Rupee will appreciate and real estate will depreciate. Economical collapse will be avoided. Will he do it?

Friday, August 2, 2013

Mango Prediction - 2013

After Anna Hazare episode, middle class will come to street to protest against government about the erosion in their real estate valuations.This would be Indian Middle Class next agitation.


Thursday, August 1, 2013

For Suresh from Mango

Suresh asked me to write the future events ( 6 months to 1 year) in the backdrop of government losing all the ammunition.

This is very difficult to predict especially what would happen with 6 to 12 months.  My long term view is that the Indian Economy screwed to the point of no return and it is impossible to repair the economy without a crash. Let us try to predict.

1.  Rupee will nosedive further. It is possible that we will see 65 Rupees per dollar easily.

2. The effect of Rupee will automatically cause Repo and CRR to go up.

3. Share markets nifty and sensex will crash ( 4500-5000) to (12000-14000) levels respectively.

4. After Anna Hazare, middle class will come to road to protest against the real estate crash. Middle class who invested in speculative real estate will face the heat.

5. Banking system will be hit very badly. NPA will go up hugely.

Since this is something which would happen first time in India ( the sheer size), it would be scary. Be in cash.