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.
Government is now pushing PSUs for a higher dividend to bridge the subsidy gap.... so much for arm twisting governance Vs hands off governance
Link here :http://timesofindia.indiatimes.com/business/india-business/Govt-seeks-higher-dividend-from-PSUs/articleshow/11259979.cms
Really like the write up...Basantjee is spot on the problems we are
facing. Only the food security bill has the potential to turn India
another Greece in a few years!
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Diablo 3 itemsD3 items
Yesterday in BBC i heard Nigeria has removed subsidies for petrol.
What is harm if the corrupt join BJP? At least they become patriotic!!
patriotism is the last refuge of a scoundrel
[QUOTE=1234]patriotism is the last refuge of a scoundrel [/QUOTE]
In this country its the first...
Our country lacks leaders who are smart and honest. Most of our leaders are smart and dishonest. Remember Buffet's quote about such people? They are the most dangerous people.
Our country is currently ranked at 132 out of 183 countries in the Ease of Doing Business Index maintained by the World Bank. We need reforms and better policies with stronger judiciary to lift us out of this chaos and mess that we find ourselves in.
Nehru, while being an excellent leader, committed the ultimate sin of using socialism to govern our country. His lack of belief in our country's people to chart a better future of themselves set our country back many decades in terms of genuine progress. Needless to say, his model, which was taken many steps further by his daughter, spawned corruption in such a large scale in our country that we have now accepted it as a normal part of our lives.
Even with the little liberalization post-1991, we still have a lot of socialistic tendencies like the NREGA, FSB and an assortment of our subsidies. All this will only serve to block the ingenuity of our people and prevent genuine progress that we, so thoroughly, deserve.
My only hope is that we get smart and honest leaders who realize this and usher in some major reforms that can propel our country to greater heights. Sadly, i dont see anyone capable of this as socialism has become a huge part of our national psyche.
I think part of the cribbing by industrialists is related to the general slow down and the realization that even the super rich may have to go to jail.
Number 132 out of 183. This means our politicians are not smart and dishonest. They are of average intelligence and dishonest.
[QUOTE=kiranr]
Our country lacks leaders who are smart and honest. Most of our leaders are smart and dishonest. Remember Buffet's quote about such people? They are the most dangerous people.
Our country is currently ranked at 132 out of 183 countries in the Ease of Doing Business Index maintained by the World Bank. We need reforms and better policies with stronger judiciary to lift us out of this chaos and mess that we find ourselves in.
Nehru, while being an excellent leader, committed the ultimate sin of using socialism to govern our country. His lack of belief in our country's people to chart a better future of themselves set our country back many decades in terms of genuine progress. Needless to say, his model, which was taken many steps further by his daughter, spawned corruption in such a large scale in our country that we have now accepted it as a normal part of our lives.
Even with the little liberalization post-1991, we still have a lot of socialistic tendencies like the NREGA, FSB and an assortment of our subsidies. All this will only serve to block the ingenuity of our people and prevent genuine progress that we, so thoroughly, deserve.
My only hope is that we get smart and honest leaders who realize this and usher in some major reforms that can propel our country to greater heights. Sadly, i dont see anyone capable of this as socialism has become a huge part of our national psyche.
[/QUOTE]
Posted on:12/27/2011 7:50:58 PMsubu76
On Indian government pledging shares...I wonder if thet will pledge shares to PSU institutes like LIC and then never allow it to sell.