This time its different

If you look at the history of India’s credit cycles, most of the time companies have gone bad, but not their promoters,” Mr Uday Kotak said, referring to the owners of India’s largest industrial houses. “This time the banks must ensure that the pain is shared fairly between the banks and equity owners.”

Vajpayee’s comments on Sonia’s speech

After seeing this clip, feel saddened about Manmohan Singh’s aloofness and silence.Feel he has destroyed the prestige of the office of the PM.Even Deve Gowda had more presence than him !!

Also, why has Vajpayee not given the Bharat Ratna?Lesser mortals and lesser PMs than him have received it.It would have been an easy way for the Congress to score brownie points


The Sahara Verdict and its impact

The Supreme Court in a recent verdict asked the Sahara Group to repay 24,400 crore to investors with interest in the next three months.

The Sahara Group claims that it can do so without any problems.Now the question is from where the money will come from?

The answer can have an impact on various markets:

1.If the money comes from abroad/external borrowings (most likely imho) then it will play a role in supporting the rupee in the currency markets.

2.If Sahara had kept the investors money in the domestic banking sector, then the sucking of the same will cause the domestic liquidity situation to go haywire, depressing the stock markets and impacting the debt markets

3.Sahara has huge land holdings.Selling off the same will involve distressed prices which will impact the realty market adversely.

On the other hand, if Sahara defaults, then millions of small investors (or a handful of politicians?) will be left stricken.

Either way, the markets seems to be taking a very benign attitude towards Sahara’s travails.Perhaps its forgetting what Rajiv Gandhi once said “When a giant tree falls, the earth below shakes”