You can fool some of the people all of the time, and all of the people some of the time, but you cannot fool all of the people all of the time. - Abraham Lincoln.
When the UPA was elected to power the stock market saluted it with a 20% circuit up with a firm belief that this Govt. will put India on a strong growth path through a spate of developmental activities led by second generation reforms. In retrospect the collective wisdom of the market as defined by stock indices was a classic case of fooling all the people some of the time. As time progressed all that the markets saw from the Govt. was mere hope and talk with very little action bringing our belief for a sustained high single digit growth to a virtual standstill. �All talk and no work has made Manmohan a dull Prime Minister�
While all this happened the stock market bulls quickly set themselves up for a long haul. They saw the ticker race towards the earlier top of 21,000 and the first rule for a market participant is that anyone in this market can lie but not the ticker. So they piled up with gusto buying the old beaten down names, stocks that hadn�t moved and waited for the ones that made new highs to collapse �a classic case of what happens in the every market cycle. After two and a half years all that remains of those stocks are memories - both bitter and forgettable.
As the markets kept postponing its expectations and pre-poning the celebration the Govt. kept disappointing through inaction with complete disregard to the irreparable damage that they have inadvertently done to this nation and its economy. These include mindlessly raising interest rates to show en effort towards curbing inflation whereas the source of the problem was elsewhere, trying to be a green man by cutting down mining and developmental work to a point where the Power companies suffer from acute shortage of coal and the lending agencies from risks of non-payments, slowdown in infrastructure activities and finally statement by the RBI of its inability to defend the rupee have taken a toll on our growth momentum as we run the risk of sub 7% growth for the next two years.
A Govt. that is made up of Lawyers at the top seems to do just one thing -argue and postpone. Meanwhile our Prime Minister seems to follow a policy of avoid, delay and defer. Instead of clamouring for FDI in retail with limited support the PM should focus onthe basics. POSCO�s US$ 10Bn project lies stuck between the files, several mining projects have been stopped because the Govt. has suddenly turned green? FDI in retail is a five year plan. How can Wal Mart improve delivery from farm to fork in the immediate future? We did not have FDI in retail when we clocked 9% growth in GDP? The proposed Food security Bill is another of those legislations being introduced with an eye on vote bank politics. It will encourage people to sit back at home and work for three days a week instead of five. This is a colossal waste of public money and is against the basic roots of capitalism. I guess 2G was better because it was a one time expense but this one will continue for years because once done no party can reverse the process once it is done.
The only hope for an investor is that India will survive inspite of the Govt. and its policies and these times could be one of the better ones to invest in but only for someone who has a long term view but don�t ask me how long is the long term? How-ever there are a lot of landmines in the market with a few more live explosives in them so it is better to walk the concrete path (strong names) rather then take the shortcuts (beaten down stocks) even though it would mean taking a little more time in reaching to our destination.
Very interesting article, sir.
In my opinion, current government is facing a policy paralysis. There is no active policy government have to tackle the real world problem the common man is facing but government never forget to say "aam aadmi ki sarkar". If it is an "aam aadmi ki sarkar" then why government lifting subsidies from various household requirements and why government is deregulating petrol prices ?
Really, government has to answer many answered questions.
I think too many people in India especially those who have enough wealth (middle class, corporate)are forgetting how poor people in India actually are.
FSB will be a great thing for everyone if implemented well.
No one , not even a single person should die of hunger.
One thing govt. can do is to have it applicable to everyone in this country (not 62% as proposed) rather than trying to identify BPLs and leaving it open to hoarding and other such malpractices.
If it will be Rs 3 for everyone then no problem of hoarding etc.
And they should increase taxes on individuals(by 20-40%) as they will be already saving by getting cheap food and this will keep inflation in check
[QUOTE=ungboysj1]
FSB will be a great thing for everyone if implemented well.
[/QUOTE]
Have you come across even a SINGLE scheme which has been implemented well in India?? It is most likely to end up as another scheme for transferring tax payers money into personnel accounts!! Sad indeed but true
ungboysj1, It seems you don't understand simple economics. You want to increase tax, then investors will vote with their feet. Even Indian businessmen are loath to put projects here. In that case there is no employment and and no tax at all, forget about increased tax. where do you think Govt. will get money for these utopian schemes? Why do you think Greece is in trouble? And once ppl have habit of getting free stuff and then there is no free stuff we have problem. Let me give one example. In Ethopia, People are getting free food since years and so farmers went out of business. Not only that new generation doesn't know how to grow food!!! So true consequences of this schems are know after years. And then it is too late!! Ask ppl in Greece if they are happy! Rather use money to create opportunities so people can work and buy their food and keep their head high.
[QUOTE=manishdave]In Ethopia, People are getting free food since years and so farmers went out of business. Not only that new generation doesn't know how to grow food!!![/QUOTE]
I agree. Relying on such habitual aid of others (it could be our own government or it could be developed countries giving aid to underdeveloped countries) can cause more harm in the long term.
[QUOTE=nannu_68]
[QUOTE=ungboysj1]
FSB will be a great thing for everyone if implemented well.
[/QUOTE]Have you come across even a SINGLE scheme which has been implemented well in India?? It is most likely to end up as another scheme for transferring tax payers money into personnel accounts!! Sad indeed but true [/QUOTE]
Ungsboy ur staying in a fools paradise.Wake up.
Every Indian shud realise that for every 12 days in a month they work for GOI so they shud be worried about how their money is being spent by GOI.
A lot of poor farmers were indeed dieing of hunger. Hopefully this move will atleast solve that problem.
Mr. Manish , i won't comment on my knowledge of economics , but you have to believe that all politicians of this country and members of NAC aren't dumb , that they are all agreeing in introducing this bill,infact most are highly experienced , qualified & intellectuals There are people dying of hunger and that need to be addressed , we don't need a gdp growth of 10%+ & Sensex at 40000 and people dying of hunger , a growth which isn't inclusive & spread is useless A keyboard warrior like u and me feel we know everything and all politicians running this mammoth country are dumb & corrupt but weak always feel the same about the strong You may close your eyes to poor people around you but those running this country have to think of everyone . They have as much right over resources of this country as you and me have . Why should not they get food for small price if u and me are busy looting the resources of this country as if they belong to us only Although i am thankful for god for what i have , i don't have a iota of confusion that whatever i have is because i was lucky to be born in a capable family and if was born in a very poor family i would most likely be living a miserable life fighting for every meal Do you really think that anyone typing some keyboard button in a.c office producing a luxury item/service deserves better income than say a farmer working in hard conditions producing something essential for human survival i.e food This world is very complicated and no one opinion is 100% correct , whatever u may think or say there is always a other side .
Mr. Manish , i won't comment on my knowledge of economics , but you have to believe that all politicians of this country and members of NAC aren't dumb , that they are all agreeing in introducing this bill,infact most are highly experienced , qualified & intellectuals
There are people dying of hunger and that need to be addressed , we don't need a gdp growth of 10%+ & Sensex at 40000 and people dying of hunger , a growth which isn't inclusive & spread is useless A keyboard warrior like u and me feel we know everything and all politicians running this mammoth country are dumb & corrupt but weak always feel the same about the strong
You may close your eyes to poor people around you but those running this country have to think of everyone . The poor have as much right over resources of this country as you and me have . Why should not they get food for small price if u and me are busy looting the resources of this country as if they belong to us only
Although i am thankful for god for what i have , i don't have a iota of confusion that whatever i have is because i was lucky to be born in a capable family and if was born in a very poor family i would most likely be living a miserable life fighting for every meal
Do you really think that anyone typing some keyboard button in a.c office producing a luxury item/service deserves better income than say a farmer working in hard conditions producing something essential for human survival i.e food
This world is very complicated and no one opinion is 100% correct , whatever u may think or say there is always a other side .
Posted on:12/19/2011 2:26:41 AMpramodjain
Honesty is a costly thing, don't expect it from cheap people.