hiee friends...
first of all..A good news..I am placed in Infosys....
now next thing comes...where are we heading too..not we actually...our economy specially Euro-Zone and USA.......Euro-Zone is on the verge of collapse..
the pressure if we see is increasing tremendously...the reasons may be
1.Market pressure on Italy and Spain rises with borrowing costs 
 2.The United States' top credit rating is cut for the first time ever, triggering turmoil on the financial market
3.Concerns emerge that France could be the next country to suffer a top credit-rating downgrade.
4.European stocks have tumbled by about 4.0 percent. and Euro zone inflation steady at 2.5 per cent
5.Gold jumps to a record high price of $1,921.17 an ounce. 
6.Greece announces new budget cuts totaling about two billion euros, with renewed rumours of a debt default or Greece's possible exit from the Eurozone. 
7.The eurozone's current account balance worsened in July to a deficit of 12.9 billion euros 
deficit-difference over earnings and expenditure..i.e, earnings is less by 12.9 billion euros than expenditure...
hope I made my point clear...
n the question..what's aggravating the situation ..??
Italy -- the euro zone's third largest economy but these Italy's struggling to get back the investor's confidence and moreover they have asked help from China.So that China may buy Italian assets and stabilize the euro-area.According to the new data,Italy has sold its assets worth 3.9 billion USD.
Expert statements
Polish FM said "if the economic conditions would not recover ,then world war III is expected."


IMF chief Christian Lagarde said "our economy is a dangerous new phase,worsened by feeble political leadership, with deepening uncertainty over the most heavily indebted governments."


European Central Bank chief said "threats to the euro region have worsened and growth rate is reduced to 1.6 %.
Now comes the other news which came into picture was...Other Countries are saying that Greece must exit from euro-zone.
For recuperating from this crisis a strong base is needed.The most strong economy is euro-zone is Germany and second is France. They have already given certain bail-out packages for this crisis and they have ensured their further support too along with that The IMF is taking a key part in last year's 110 billion euro ($151 billion) bailout of Greece, but is still analyzing Athens's progress before releasing a new tranche of funds to the government. 
Let's hope the situation does not get bad to worst...
Take Care...:)

Hey friends..

Hope you all are having great time...!!

So wats up these days....

rather my question should be...

Whats up with Slow down or Recession that was expected..??

First talking about the Recession or Slowdown that has hit the economy world wide let it be USA or Euro -Zone..

In the last post as I stated that S&P has reduced USA ratings from AAA to AA+ on account of debt-ceiling crisis..

One thing I can Say is US, European economies still tenous. In USA The growth expectations are downgraded because of expected slower pace of income and spending growth and the rate of U.S. hiring slowed and the jobless rate,exceeds 9 percent.

About Euro-Zone crisis I can say that The GDP growth estimates are reduced by a full percentage point for this year and the next year owing to softening domestic demand in the core countries. This could affect the euro area as a whole, slowdown in global trade momentum marked by deceleration in manufacturing indicators, difficulties faced by banks in accessing term funding at reasonable rates and likelihood of increased funding costs that could impact investment projects.

The saviour factor for USA would be last round of Quantative Easing(QE),which will keep the interest rates low till 2013 and thereby lifting the economy and Federal Cheif Ben Bernanke has stated Strong fundamentals will drive US out of recession.Their exporting market is largest,and the recovery there is modest.

and the redeeming factor for Euro-Zone would be they have taken very important steps. Many countries have announced additional austerity measures and are accelerating their deficit cuts. The other thing they have done is to agree to increase the flexibility of the European stabilisation fund and according to European Financial Stability Fund and Deutsche Bank central bank toolkits will be able to keep banks alive, at the cost of interest margins and reduce the amount of investment funds that are borrowed.There banks may likely face some problem but Liquidity crisis unlikely to hit European banks.

and and and other thing..gear up for placements..All the Best...Do well..!!!!

There is an old saying on Wall Street that the market is driven by just two emotions: fear and greed.

One of the best sayings by Warren Buffet is :"Be fearful when others are greedy, and be greedy when others are fearful."

The situation may be critical to understand but then the message conveyed over here is that

Scenario 1

When people are greedy and things go higher.There is a desire in people to make money which ends in selling and when it reaches a saturation level.It starts coming down.Investors get caught up in greed (excessive desire).

Scenario 2

In simple words I can say that the lower things go, or When stocks suffer large losses for a sustained period, the overall market can become more fearful of sustaining further losses and taking advantage of such situation an intelligent investor can buy.

In my previous post as I said USA will lose its AAA rating that means the best one..

It happened actually S&P has reduced their ratings from AAA to AA+ which resulting in plunging of stock markets world wide.

Now i think i should throw some light on AA and AAA+

What Does AAA Mean?

It means the country who holds this rank has extremely strong capacity to meet its financial commitments. 'AAA' is the highest issuer credit rating assigned by Standard & Poor's.

what does AA+ means ?

The meaning remains almost the same but it shows high quality, with very low credit risk, but susceptibility to long-term risks appears somewhat greater.

and the bottom line is whether US hold an AAA or AA+ rating, the difference didn't seem to matter and chances of recession happening are 1 in 3 in next coming 6 months.

As far as Indian markets and companies are concerned I think they just over-reacted to the US downgrade.

But they recovered well which was driven by a combination of factors:

The government's efforts to reassure the market with talk of the limited impact of the downgrade on our own growth, some dutiful buying by domestic state-owned players like LIC, UTI and nationalized banks.

Moreover we don't have depreciated currency value and reserves like USA.

Indian economy as well as the world economy wont be hit so hard with this event.Although I came across the fact that hiring by Indian IT's and other banks will be reduced only by 10 % on account of this world crisis.

But this wont have much of the adverse effects on India..

So relax and we should be proud on what we are..

HAPPY INDEPENDENCE DAY...n good luck..:)

Hey friends..

Presently we can see us grappling with debt crisis...

When Bill Clinton left the white house the American govt had surplus..n so had the title of super power..but after that when George bush came into power the expenses were like

1.Medicine -$180 bn

2.TARP -$224 bn

3.Discretionary -$608 bn

4.Stimulus -$773 bn

5. Defense-$1469 bn

6.Tax cuts -$1612 bn

and the projected spending of Barrack Obama includes

1.Medicine -$152 bn

2.Discretionary -$278 bn

3.Stimulus Tax cuts -$425 bn

4.Stimulus Spending -$711 bn

What Does Default Mean?

In simplest words i would say the failure to promptly pay interest or principal when due..

What is Debt Ceiling ?

The legal limit on borrowing by the federal government.The United States Constitution gives the Congress the sole power to borrow money on the credit of the United States.Before 1917, Congress had to approve borrowing each time it came up. In order to allow for more flexibility as the nation entered World War I, lawmakers agreed to give the federal government blanket

approval for most types of borrowing — as long as the total was less than an established limit.

problems affecting now.The nation’s debt is nearly closer to the legal limit of $14.3 trillion.

In the near time if this will be breached then I think effects will be worst which includes:-

1.The new debt deal formed by Barrack Obama raises the debt ceiling by $900 billion to $17.7 trillion.

2.It cuts spending by $917 billion over the next decade and a special congressional committee will be assigned to find another $1.5 trillion in deficit savings by late November.

3.If Congress comes up with the savings, or passes a balanced-budget amendment to the constitution, the government will accrue another $1.5 trillion boost the debt ceiling - sufficient to pay the country's bills through 2013.

4.If Congress fails, the president will be granted a $1.2 trillion debt-ceiling extension - but automatic, government-wide spending cuts (half of which will come from the defense budget) will take effect in 2013. There will be no automatic tax increases.

But this debt crisis is the best thing that has happened in a very long time!

Why?

Because it woke up the world, especially Americans. We gazed in astonishment as the blind idiosyncrasy of the USA,unfolded. The truth spilled out, covering the loopholes of the government along with that USA is threatened to lose its AAA rating...basically world's super power rating essence on Indian Economy primarily US debt crisis unlikely to impact Indian economy but as far as I see the domestic economy is not insulated from the world economy, there will definitely be some tremors here in India. Both imports and exports will be impacted. India’s exports to the US, particularly IT services, will have an adverse impact.

Any slowdown in the US will have an impact on India in terms of our ability to export..as during 2008-09 there was a sharp decline in Indian exports..but at the same time we can see appreciation of the rupee, which in turn will help bring down the current account deficit...

But still we can see downfall of economy as well as politics tooo...

so hope for the best and next time when the share markets falls there is an amazing opportunity to buy and make profits...

good luck...take care...:)

Metamorphosis of Indian Economy

contd....

In 1991 when Dr. Manmohan Singh became the finance minister there were numerous changes which are as follows:-

1. Companies were freed from unnecessary restrictions and import of raw materials, machinery as well as consumer goods became much easier.

2. Foreign investment became popular leading to rise of foreign currency in India.

3. Securities and Exchange board of India (SEBI) and other Public Sector Units (PSU) also became integral part.

4. The term Liberalization, Privatization, Globalizationc(LPG) changed the aspect of Indian economy, because it restored the confidence of creditors and also maintained the currency reserves and rates.

5. Enhancing productivity promoting an employment oriented pattern of industrialization thereby attracting foreign investment.

	Variable	1993-94	1999-2000
1.	Total employment	375 Million	397 Million
2.	Unemployment rate as measured on the basis of current daily status C.D.S	6 %	7.3 %
3.	Rate of growth of employment per annum	2 % (1983-93-94)	1 % (93-94-99-2K)
4.	Number of employed workers in the agriculture sector in Millions	242	238

After that Privatization of banks and telecommunication sector flourished in the late 1990’s under administration of Mr.Vajpayee. India’s Gross National Income is only $477.4 billion till 2003-04.The real GDP growth in 2007-08 to be around 8.5 per cent before recession. Cities like NOIDA, Gurgaon, Gaziabad,Bangalore, Hyderabad, Pune, Chennai and Ahmedabad have risen in prominence and economic importance, become centers of rising industries and destination for foreign investment and firms.

Presently as we all know india is the second fastest growing economy after China and already the fourth largest economy in 2001 after the U.S., China and Japan.

As far as I see India would be the financial super power by 2040 because of its huge human resources, rapidly upcoming service sector, availability of large number of competent professionals, vast market for every product, increasing impact of consumerism, absence of controls and licenses, interest of foreign entrepreneurs in India.

Metamorphosis of Indian Economy

Recently there was a very popular message circulating on cell phones

In 1990-samosa was 1 rs and call was rs.7

In 2011-samosa is rs.7 and call rs.1

Inflation is same but rates are shifted somewhat….

Message was nice though…

No doubt we have seen a paradigm shift as compared to 1990 to the present time..

We all are aware of India’s condition after independence.we were totally ruined and our economic condition was at its worst.

Welfare of the country and making and economic democracy was the main thing in India at that time.Our first prime minister pundit Jawaharlal Nehru wanted India to be a self sufficient company and started central govt planning on account of soviet union(Russia).The first five year was started in 1951.no doubt they tried to make lots of changes in terms of industry and growth.

But as far as I see the major reforms started in 1971, under Nehru's daughter, Indira Gandhi, the Government tried to eliminate poverty by promoting small, labor intensive enterprises. One of the most wonderful things to happen to the world was the genetic development of high-yielding grain varieties, the Green Revolution, under- ground nuclear tests and development on defense took place in 1974 along with development of various large scale industries.

All these changes were followed by economic reforms by Rajiv Gandhi.as he himself was Imperial college pass out, so when he came to power he increased government support for science and technology and associated industries, and reduced import quotas, taxes and tariffs on technology-based industries, especially computers, airlines, defense and telecommunications.

India was a latecomer to economic reforms, embarking on the process in earnest only in 1991, in the wake of an exceptionally severe balance of payments crisis which will be covered in the next post..or I can say coming up soon…..

hey...:)

Cabinet is reshuffle again after january.........

some ministers are promoted and some are thrown out too like Dayanidhi Maran (Textiles) resigned in the wake of his being named in the 2G scam and Murli Deora(Corporate Affairs), M S Gill (Statistics and Programme Implementation), B K Handique (DONER), Kantilal Bhuria (Tribal Affairs) are the others who were dropped out of the cabinet..

Heading the annoyed Congress ministers Gurudas Kamat resigned as Minister of State after the reshuffle as he was unhappy after the decision made.

List of new cabinet ministers are...

1. Parliamentary Affairs- Rajiv Shukla

2. Railways-Dinesh Trivedi

3. Science and Technology, and Earth Sciences-Vilasrao Deshmukh

4. Steel-Beni Prasad Verma

5. Environment and forests-Jayanthi Natarajan

6. Health and Family Welfare-Sudip Bandopadhyaya

7. Home-Alwar MP Jitendra Singh

8. Communication and IT-Milind Deora

9. Rural Development-Jairam Ramesh

Manmohan Singh did not touch the 'big four'--finance, home, defence and external affairs--and also kept four ministries, including telecom and civil aviation...

hope this change is for goood.......!!!!!!!!!!