Subtle Jealousy?
We, the people of India, hate taking risk – so we will not invest in equities, nor will we do our own business. It does not just stop at that, we will celebrate the people whose business fails or those who are in trouble.
So people are very happy when Vijay Mallaya gets into trouble or when the papers of Future Group are down graded. Let me make it clear – I have no clue about the competencies of both these gentlemen (Mallaya and Biyani), but it takes a lot of guts and effort to do business in this country. So those who do business and are successful deserve outsized gains. So when Intrapreneurs and Entrepreneurs succeed, we are jealous of them and keep spreading stories.
When a fund scheme of a mutual fund closes down, there is so much pleasure among the other mutual funds, that I could not even believe it. Not that it matters to me, but it feels disgusting. Of course I have no role to play in naming the other people whose glee was too obvious – and could not be hidden. So when Santosh Kamath’s funds closed temporarily, people who did far greater crimes were suddenly sounding like paragons of virtue. Amusing, this too is subtle jealousy. Chalo, Jalte hain to Jalne do..After all the Amar Prem song..”kuch to log kahenge..logon ka kaam hi”
When DHFL was putting together a Chapter 11 banruptcy, we saw the vultures, alligators moving in and making sure that the company could not get up.
We the educated people who understand INFLATION and have a surplus will not invest in equities. We have no guts to do business, but are very jealous of the people who do business! We expect a mutual fund to make out “equities investing” easy and smooth – as if that is possible, and as if that is what is equity funding.
We hate risk taking #$%^^& and will happily rubbish them. When a businessman fails, we all know how – he had no ethics, morals, had too much debt, had issued too many shares to the ‘funders’ etc. etc.
It is going to take us a very long time to catch up with China for sure.
All the best.
rkhgajjar
It is age old legacy with Indians,that is why we are not so successful in team events.
Even in Shri Krishna times,there was Shishupal,in Ramayan there was Manthra,They are eternal,they Never die.
To be honest,partly corrupt practices at management levels,if at all they are responsible,are also to be blamed.
SS
Sir, the venue of this game has changed from stock markets to elsewhere. More than jealousy, people are afraid to lose hard earned money. It is observed that if FIIs, holding 25% of sensex, their money inflows, then markets go up and vice-versa. Promoters share of sensex being 50% is not participating. FED is printing money like there is no tomorrow, 2 Tn $. India and China are de-valuing money as and when printing happens so that our Exports do not fall. Money printed is going to the dangerous “Quadrillion US$ Derivative market” game (1000x times Tn $ stock market, can be googled), where people are dangerously gambling money on heavy leverage and cheap Tn $ credit offered by banks. So, when unemployment rising, lockdowns happens, quarter results fall, US Stock markets move in opposite direction without any regard to fundamentals. I suspect prices in (US) stock markets could be even rigged. FIIs are gambling in Indian markets correspondingly & proportionately.
SS
Indian kids earn 100Rs, buy potato and rice for 50Rs and save the other 50Rs. US Kids earn 100$ and spend 200$ on potato, rice and Mercedez. US Govt will simply print money to loan them at 0% interest. Rest of world will export our goods and services at a cheap cost to them (compare IT professional salaries US-India). Then all of us will devalue our money to US$. US$ will get AAA rating and Rs will get BBB. Then to take care of the ‘inflation’, Indian kids need to invest the balance 50Rs in things they do not understand fully.
Francis
mr (or ms).ss, me too think in the same line.
SS
Thanks Francis. This is the game just FYI: You have 10$ Total net worth. If you put in stock market, you will get 11$. But I want more. So, I go to banks and take 1000$ loan at 0% interest, needs to be re-paid 20$ per month in 50 instalments. Then, I go to derivative market and wager 10 bets 100$ each say Apple stock price will go up by May or something like that… Each bet, if you win, you get to keep your 100$ and the other’s 100$. If you lose, you lose your 100$ on that wager.
Suppose, I win 6 and lose 4. My gain is (6×200)+(4×0)= 1200. That is a clean 200$ profit compared to 11$ in stock market. On the other hand, suppose I lose 6 and win only 4. Then my gain is (4×200)+(6×0)=800$. (200$ loss). Hey but, you must pay back bank only 20$ a month. I will go to bank and borrow another 200$ and spread my bets again. In the bell curve, the odds to win:loss are 50-50 and you will have 10$ you originally started with + 1000$ that you borrowed and game can go on. The interest is 0% and you do not lose anything. If you end up on either side of the tail, you could be either very very rich. OR you could come out broke. If you are broke, US Govt will bail you out.
Derivative exposure of Banks: JPMorgan Chase held $54.9 trillion; Goldman Sachs Group accounted for $50 trillion; Citigroup $49.4 trillion; Bank of America $39.3 trillion while Morgan Stanley sat on $36.2 trillion as per reports. Just to give a comparison, recent FED revival is $2 Trillion. Google it you will see…
Krish
A guy in my hometown went with a business proposal to PSU bank seeking loan and one bank or other turned him down. He was a persistent guy and he understood how loan system works and after sometime, succeeded to get a loan from state financial institution meant for SME promotion after offering 30% cut under the table. Once he got the loan and got some heavy machinery, it was a successful story all around our circles. After knowing how funding in India works, 3-4 more business proposals followed and he grew quite big in no time and went on to become VIP. Everyone of our relative and even distant friends were falling at his feet to invite him for various events so that they can plead for jobs, loans and what not. One fine day he nurtured political ambition and his rival got to know how this guy grew big and pulled strings. Kingdom collapsed in no time.
I have lot of respect for any budding entrepreneur and I admire them taking path that we couldn’t dare to do but with only one caveat. Let them not fool around with ‘others money’.
SS
Hi Krish, In India, interest rate is not 0%. Besides Banks do a thorough check before advancing loans to Tom, Dick and Harry.. If one defaults on loan, goondas will come home..
The distinct thing about US is brand value of $ as reserve currency. No matter how much money FED prints, it is acceptable for all countries and all go in like zombies. The oil price is racing to 0 per barrel and opec countries as such are facing issues. There are oil tankers stranded in the ocean not knowing where to go. (see maratime traffic). Yet markets are intact. There is some foul play in economy. US banks compete against each other to advance Loans without any background verification. Indians are hard working and fiscally responsible. Our work is not inferior in any manner. But yet… .. Unless make in India, consume in India works (just a slogan is not enough) we will depend on other countries and they will take us for a ride.
ck
Fake money (US$) is being printed on such a scale that it will blow the doors of the entire world economy. All this printed money has opened the door to hyperinflation…