Are the Bankers new scapegoats.

Generally the incoming government is quick to put its own people in places of power it starts with IAS and goes down to Governers and VC of varasities. But it seems this time it has gone to a new level. The government seems to be scapegoating bankers for the loans they granted to Kingfisher. Former chairman of IDBI and other top officials were arrested recently. Bankers in mumbai definately feels it is vendetta politics. Swaminathan writes in ET a piece on it. He exhorts the government to be pragmatic and set up a bad bank. That possibly the solution to this mess.

 

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Trump disregarding new normal

While it is sad to believe who can not grow forever, atleast in terms of economics, but it is hard reality. Ruchir Sharma offer his two-cents. His contention is that, at the time of Reagan productivity and population growth was both 1.75%, hence US could grow at 3.5%. With population growth declining and productivity at just .75% its hard to achieve purported 3-4% growth. This is the new normal and we all have to adjust to it.

 

How Modi govt lobbied Moody’s for ratings upgrade, but failed

Rating Agencies are major stake holder in international finance. No wonder they were identified as the prime culprit when global finance ran wild. The hallow institutions were tarnished. But not enough, I guess. Recent effort by Indian government to lobby one of the three  major rating agency.

Though it is highly unbecoming of Indian Govt to indulge in this, I guess the practice is quite widespread.

UPA real growth Story

Rajiv Gowda, a professor at IIMB, and a Congress Rajya Sabha articulates in The Hindu, what is the real story behind the growth in UPA.

The story started when previous PM Dr Manmohan Singh, penned a article in The Hindu expressing his concerns on demonetization. S. Gurumurthy, RSS ideologue, published a rejoinder to same, that it was growth of now demonetized money which fuelled the growth. This also fuelled corruption and black money, he argues.

  • In the present of article Prof. Gowda argues:
  • Growth was real
  • The growth in asset price and gold and stock market was in line with norms.

All the three articles are very nice reads.

 

 

Unravelling the mystery behind Rs 3-lakh crore deposits in 15 days

Business Standard

As we go in Post-Demonitized India, Conspirasy theories are bound to follow. But some raise the issue, which warrant further investigation.

Ishan Bakshi & Nitin Sethi has filed this report in BS. The 3-lakh crore deposit in a fortnight is unprecedented and so is withdrawl of 1.2 lakh crore in the following fortnight.

RBI consent in demonitization

In the present days of modern monetary system, independence of Central banks is given paramount importance. FED, ECB every single one has guarded this independence tooth and nail. Demonetization of 85% of currency takes some nerves, just too much risk is involved. Which raises question how much was the involvement of RBI in it. Media states on six people knew about it, RBI governor and ex-governor (erstwhile governor)  from RBI knew of it. Which means it never reached the board. This makes is much more murkier. Dr Rajan and Dr Subbarao put everything inline to protect this independence. I wonder how much is it now. It almost seems North Block is running RBI. Shaktikant Das is making all the announcement, Dr Urjit Patel is not be seen anywhere. Ex- Dy Director KC Chakrabarty spills the beans further. This was proposed during UPA-II time, but was rejected and did not reached the board state.