We are what we are !!

we are what we are.. You all might have heard about Pendulum theory in physics.If my memory serves me right, it was Galileo who understood and codified this Pendulum theory based on gravity and motion and all the clocks in the world had pendulums which go back and forth keeping up the time interval between their swings. Based on this pendulum movement there is a theory called Pendulum effect. This is applicable for culture, politics, economics and even in our behaviours.When the Pendulum is pulled to one extreme, this Pendulum effect clearly says that pendulum will swing back to the other extreme with force, motion and vengence ! Signs of this effect is most visible in administration. When there is laxity in enforcement of rules of banking norms and when NPAs swelled , RBI and the state banks swung into action. The rules have been overtightened and even good and genuine borrowers are made to feel the heat and sweat so much so that all borrowers are first considered defaulters or a...

We are what we are... Many of my relatives and friends are interested in Vedic astrology and they used to ask how the gaze of planets affect the mortals like us.And now Dec 26th Solar eclipse has kindled all kinds of predictions incl. earth shattering apocalypses and highly disturbing personal experiences.  Is there any scientific basis for this.? Even those who are otherwise theists, do not believe in this planetary influences as there are no direct scientific proof or evidence for this. However many of them from their personal experiences know that Moon/Lunar movements cause disturbances on the mental health of some of their well acquainted persons. Of course they all have witnessed the rising tides in the sea depending on lunar positions which has scientific proof . I used to explain them vedic astrology on the basis of both observations i.e pramana as well as inferences i.e anumana. My explanations are like this: 1) Your horoscope is like your SSLC mark sheet. It shows h...

Many a time whenever Banks lend , they try to cover their risk with a primary security as well as a Collateral security. Collateral as the meaning indicates is only  secondary . It is additional to the primary security. But many banks insist Primary as well as adequate Collateral Security since the Primary security may lose value over time and use. Mostly movable fixed assets like plant and Machinery are given as primary security but these assets get depreciated over the period of their use.As a backup Banks will ask for a Collateral to have sufficient cover for the value of the loan. Banks in India esp. PSU banks adopted a funny logic while lending to King Fisher airlines which went phut after crash landing some years back. The logic was valuing the brand KingFisher Airlines and use it as a Collateral for the loans extended to the airlines.But when the airlines went down the drain , the Brand also lost its value and as a result Banks lost their money. So such Collateral ingen...

We are what we are!! RBI was widely expected to cut the repo rate yesterday but it refrained from it springing a surprise. Central bank should always use monetary policy as a weapon and it is most effective when weapon is wielded with a veil of secrecy and surprise. But to some extent RBI's prognosis of inflation seems to have been influenced in general by food inflation and in particular by onion .The skyrocketing prices of onion caught the eyes of the Governor and his monetary policy team to unanimously decide  against rate cut and push the pause button. Governor justified this decision by emphasising that the mandate to RBI given by Parliament is only to contain inflation. There is a Taylor rule or principle in containing inflation by the Central bank. According to this rule Central bank tends to raise the nominal interest rate by more than 100 bps for every 100bps increase in inflation. So, in simple terms, Central bank will have to use a bigger weapon to tame the animal...

We are what we are! India has a long and rich cultural history. Perhaps it is the one and the only culture which has to its credit Lord Shiva coming down to our world to compose a poem in chaste Tamil , Lord Vishnu going behind a Tamil Poet obeying his command and Lord Ganesha  writing the verses composed by Ved Vyas, using His tusk as pen. Such mystic stories weaved around mythological figures have been a tradition in India to highlight the importance of values and ethics in our day to day life. Ithihasas like Ramayana,Mahabharatha have her oes who have lived a dutiful life as shining examples for the common milieu. Why this long preamble is required is due to the fact that stories have a strong influence on people in shaping their social behaviour .Since man is a social animal and as he is likely to fall prey to bad habits because there is a natural tendency for vile habits to take quick control of him.He has an attraction for such socially unacceptable habits and behaviou...

We are what we are!! There are headlines screaming " Indian economy is in ICU", "India back to Hindu rate of growth" etc.All this scare mongering is to catch your eyes and blame Modi for the economy in dire straits. When official CSO numbers were put out at 8%, some economists continued to say it is only 5.5% as it is overstated by 2.5% with their own back of the envelope calculations. In the past, when UPA was in Govt. its own FM doubted CSO methodology when GDP was down at 4.3% and now we are quoting and looking at him to offer solutions to today's GDP problem. Are we all suffering from dementia or selective amnesia? When former CEA doubts GDP calculations , we tend to denounce CSO nos. but when Govt in power says NSS methodology for estimating consumer spending is not robust, we mock at the Govt. Why such double standards? We collectively want to be "doubting Thomases" always and keep criticizing our own duly elected Govt. making fun of it....

We are what we are! Lot of noise about GDP numbers released yesterday. All TV news in English and vernacular discuss about fall in GDP growth to 4.5% , in ominous tones and words from Economists including former PM,  threatening the people with dire forecasts for the country and the economy. Why should this add to Gross depression, desperation and despondency in the country. And when was the last time we were at 4.5% or thereabouts and that was not too long ago .It was Q3 Fy 12-13. Who were at the helm? our good old Dr.MMS and financial wizard & US educated Mr.PC. Mr.PC suspected CSO numbers and doubted its methodology.link another (link) . There are some methods by which this Growth recession can be tackled.Some of the good measures already brought in by the Govt will kick in with a lag.Many of them like corporate Tax cuts are supply-side and so will not address demand deprivation . 1) "Pump Priming" is a time tested method to boost the demand and consumption.Govt...