roobaroo

Prakash: That was some good hot cup of tea!!

Suresh: ok!! lets continue, Now as the interest rates rise, EMIs being variable also increased. Since most of them couldnot afford to pay them back at revised rates, they began to default. The losses of the same were passed onto the financial Institutions who bought the "financial securities" as converted by the brokers. But these losses were not detrimental enough to disturb the US economy initially in times of American economy doing well and soaring housing prices. More and More financial institutions jumped into the Mortgage Market in their zeal to make quick money. This was a arena trading to the tunes of trillions in US markets by 2007 end.

Prakash: The problem started when the Mortgage banking Bubble burst. A slowing US economy, high interest rates, unrealistic real estate prices, high inflation and rising oil tags together led to a fall in stock markets, growth stagnation, job losses, lack of consumer spending, a virtual halt to new jobs, foreclosures and defaults.
Now with defaults stacking up financial institutions relying on them for payback of loans lost their liquidity status. The Securities lost their worth because of a devaluation of real estate prices as most of money was invested in that.

Suresh: Vicious cycle!!

Prakash: Indeed, the firms lost the credibilty to handle the risk. Because of this, the consumer spending further decreased leading to a hurdling of funds with no spending and thus a crumbling of these firms with their backs broken and no funds to cover the risk thus generated.

Prakash: hey Suresh, can u please summarise it for me?

Suresh: the whole crux lies in that a financial asset invented by Mortgage Brokers/Institutional Investors for which money was taken from large banks were repaid out of the securitisation of the same by converting them into financial securities thus hitting them back again. So it was these banks who lost the money with investors trading on it and making profits out of it. The Norms were relaxed down to earth because the investors didnt have to worry about the repayment of loans. So a bad financial system which actually became very popular for its bulk returns had to burst when overinflated. It has been a total systemic failure that has its roots in the US real estate and the sub-prime loan market.

Prakash: Thanks Prakash, it was really nice to be informed by you on this.

In the United States, half a million jobs evaporated last month. Businesses are closing down every day. Banks are afraid to lend, credit market continues to be tight. Consumer confidence is dwindling. Every expert and non-expert has declared that the US economy is in the worst recession since the 1929 Great Depression. But the US dollar is unfazed; it continues to enjoy strong confidence in a world economy shaken by financial turmoil. The greenback is getting stronger every day just as the US economy is plunging deeper into recession. Actually this is the whole point of mystery that remains unsolved. Dollar’s resurgence is a puzzle when compared with how currencies of other countries collapsed in national or regional financial crises in the past two decades. It has happened in argentina in 1999-2002 and with mexico in 1994. Financial crises in these countries not only caused substantial depreciations of their currencies, but also flight of foreign, and sometimes even domestic, capital. So far there is no shine off the value of the dollar, nor any major flight of foreign capital from American shores.

What’s with the greenback? Against all odds, how has it regained in the past four months what it lost against most currencies in the previous three years? Clearly, the dollar has benefited from the fact that it continues to be the international currency of exchange, trade and reserve. The strengthening of the dollar is also helped by the fact that Japan and the economies of the euro zone are as deeply sunk in recession as is the American economy and growth in China and India is projected to be lower than it had been in the previous few years.

Most of all, fright in world financial markets has sent investors running away from risky assets towards the US dollar and US treasury bonds. In the worst financial crisis since the Great Depression, the dollar has regained almost half of what it lost in the past six years. Consequently, American businesses are becoming less competitive as compared to foreign businesses. This will dampen demand for American exports and increase its imports. American multinational corporations will also find that returns to their investments abroad decline, when expressed in dollars. american investors who have suffered decline in purchasing value shall benefit from strengthening of dollar.

While the world economy is looking towards Asia, in particular China and India, for economic growth in the coming five years, Asian economies in turn depend heavily on US consumers. The recent depreciation of the Chinese yuan, said to be triggered by the slackening of export orders, is an indicator. A weak Chinese currency is expected to keep US demand for Chinese goods buoyant, while the recession in the US would dampen it. However, if the US economy remains in a prolonged recession, it would be foolish to expect that somehow the US would continue to increase its purchase of goods from the rest of the world to keep the world economy going, and it would be foolish and even dangerous to keep financing American imports through debt. China can keep its economy growing at double digits by using its $2 trillion reserves. The Chinese government has announced a $600-billion initiative to boost its economy over the next two years. The boost can help China maintain its potential economic growth even with slackening of US imports. It is clear that world economic growth in the next two to three years would heavily depend on Asian economies.

Asian economies have to creatively invest their resources in productive activities instead of parking them in US treasuries. That’s the only way Asia can bring the world economy out of recession.

It was a bit louder than i wanted it to be , yikes!! the whole crowd's attention was suddenly onto someone within themselves. " Who r u to protest ?" said mita, my love interest , playing the role of chief minister of the state to which i guess, majority of our audience belonged. I always hated to hear it in this tone from her, it always made me uncomfortable in rehearsals even.
I.. I am the representative of the people of this nation. I am one of those thousands of indian citizens who have paid a huge cost for the benefits out of moves from some of you and your corporate fellows. Whose world was shaken apart because smoking and doing tobacco is promoted as an act of heroes and studs. "Ahaaa.. here comes one more with his sorry saga to be blamed on us. We are very caring and dedicated for the welfare of the common man who lives in my state. came her reply..
" Madam Chief minister, i am the son of a brahmin from the divine hindu city of allahabad. I was 13 when my Uncle brought me to this city to help him in his work. He worked in the production unit of a toilet soap factory. I was also introduced there to work with some boys of same age in the loading shed. They were quite friendly and cared a lot for my well being. Early days of the work turned out to be so stressful that i couldnt bear it, i started getting bodypains, headache and couldnt sleep because of the pain. The separation from home also made me homesick and added to my severe condition. In such a situation i had no choice but to resort to what rameas and prakaas did to overcome it. That was tobacco chewing. I had to gather the courage of doing it by killing my conscience. It hurted a lot earlier but pumped in so much more energy into my body. The pains were on lesser side but sleep was still a problem. Ahh.. i could give that up" I finished with mine and was followed by kanav dressed in a white kurta pyjama, and a khaki jacket . The role of the social worker was a perfect 10 for him. " Son. you shouldn't blame behanji for this. It was a problem more to be tackled by yourself.
I stopped him midway" Hey, dont comeup with your social ideas bullshit for application into my life. It isnt simple enough for you to be saying that and I have experienced much more than that for it to be a disaster. I havent finished yet.

It was friday. This day at college had been a hectic one. Finally i was done with the Play rehearsals for the Nukkad Natak we were to play this weekend. I was pretty content with the amount of dialogues and the outcome of the script that i had written a day before only. They wouldnt come to know i did it at the eleventh hour. But all is well that ends well. Feeling content and exhaust i reached home at about 10 in the night. Headed straight to me room followed by my mom for the usual . After 30 minutes of goals and ambition talk as she left I took off the jacket and tossed it in air to land onto my pet pluto. It looked pretty odd in an adidas. The tantra landed onto my computer and what was left onto the bed, i dossed off to sleep in matter of secs.

The morning was a rush, i had to reach the nukkad natak spot by 10 and it was already 9 . Rushed up fast and barely managed to make it. I knew keeping my role to appear after 20 mins from start would always be helpful one way or other. The site for the play was carefully chosen in an industrial area for specific target audience. On the outskirts but in chandigarh reaching corner was a affair of half an hour at max. Kanav and Paki were furious already and i could notice a glance directed to me as i silently stood in front of the bunch of guys who had just finished their night shift. What a tragedy, you stay on drugs and cigerattes to keep yourself awake and your morning starts at this view. i was suddenly reminded of my cozy bed. It felt shivery and cold in Jan there. Suddenly i realised this was it, the part of my role entry had come..
" Nahi Chalegi nahi Chalegi Sarkar ki manmani nahi chalegi " i jumped into the human circle they had made.

To Be Continued.....

Enjoy the video!!!

So another red tape organisation has come into being as a result of efforts of the UPA govt. to add extra teeth to its efforts in the so called "war" against terrorism. NIA or the national Investigation agency Bill 2008 calls for establishing a federal agency with exclusive powers to concentrate on investigating terror crimes. Now the debate arises that at first glance what exactly is the purpose of this exhibition of preparedness for "Future" terrorist attacks. The glaring alacrity with which terror has struck parts of the nation that were in earlier years immune to attacks is not only worrisome but also points to the complete inaction by the government to formulate a strategy to address and root out terror.

The UPA has the inglorious distinction of having witnessing under its reign the re-emergence of the Students Islamic Movement of India and emergence of new terrorist groups claiming such horrendous acts. The spate of terror attacks has not only let the nation be seen as a country soft on terror, but has also exposed a Government that lacks a coherent nation wide strategy to deal with internal acts of terror.

The Prime Minister like on all other occasions has been found wanting in addressing the nation at a time of need. Numerous terror incidents have elicited a timid reaction from the premier and that too by way off a press statement or through officials in the PMO. This seeming lack of concern by Manmohan Singh not only further demoralizes the citizens of the country; they also strengthen the arms of the terror groups who see it as a government passive on Islamic terrorism. The lack of a coherent strategy on Islamic terrorism is also seen by some as the extension of the government pro-minority approach. For to adequately address the issue of Islamic fundamentalism, one would have to have a broad ranging discussion on religion, fanaticism and minority representation. These are all areas where the government would much rather maintain a stoic silence and criminal overlook rather than address the root cause of the problem. The tragedy of terrorism in India is not the fact that innocent lives are lost, but the fact that the government in the garb of “terror cannot affect our way of being” notion adopts a ‘back to normal’ approach within 24 hours. Terror attacks after terror attacks have shown the government address, at best, the incident in question, rather than formulate a strategy on how to handle this war that has been declared against the Indian State. With Kashmir fairly secure and peaceful over the past few years, the terror networks have tried to cast their net over the rest of India which has been evident in the sequence of attacks that took place in various parts of the nation at the will of the persons who commit such crimes. Now a terrorist has the guts to attack any area of any city of any state of the nation.

And Lets look at the solution as devised by the UPA govt. which suddenly seems to have waken up with coming elections from the hibernation after the 26/11 mumbai attacks. What exactly is the motive behind identifying another intelligence body to fight this war? Then what would CBI or RAW do? Doesnt it seem to be a simple reaction of saving its image against the outburst of anger in Indian Public keeping in mind the coming elections.It seems like a damage control move on the government's part that has concentrated more on economics of the nation under the guidance of the economist prime minister. Unfortunately it failed in that arena of work also.

Welcome to Cafe de la gossip!!