Perspectives on the global economic meltdown (Jan 26 2010)

Dileep · Post by **Dileep** » 06 Aug 2010 11:13

N^3 guru, the crores per sqft at the big 'round' is an exception. So is the prices near MG Road, Kodakara.

In real Dera Mahabali, the median price for 0.01 acres is 4-5L. The median price for sqft built up flats is 2.2 to 2.5K.

Carl_T · Post by **Carl_T** » 06 Aug 2010 11:23

SwamyG wrote: For America's own good health, for that matter's any country's good health; manufacturing jobs have to return. Employment has to be spread across agriculture, manufacturing and services sector to lend some balance. The agriculture employs 2-3% (let us round it off to 5%) onlee.
In my non-eCONmic mind, it is prudent to have as many employed, as possible, in producing essential goods & services. But then it is not efficient; so the next best thing would be to have a sizable population employed so when people stop spending on non-essential goods & services there is some safety net for the whole society - by virtue of good number of people being gainfully employed.

This might fly against all efficiency or modern thoughts. Definitely, this will keep innovations down & quality/standard of living down. But it will also keep check of all the crazy innovations down too. So instead of a few batters hitting 700 home runs; more batters will hit 100 or 250 home runs. Batters will score more singles and doubles.

SwamyG, serious question. Would you be willing to quit your job and go work in a factory at lower than minimum wage? Would you want your kids to work there when they grow up?

In an age in which people will not work below a certain wage you're insisting that they drop those pretenses and go work in factories...realistic?

enqyoob · Post by **enqyoob** » 06 Aug 2010 12:36

Thanks, very educational and scary.

Meanwhile, desh is advertising $1T Infrastructure Funds to suck in phoren penshun funds etc. as investors. Is desh going to do a delayed version of Rizald capitarism, 1980s- ?

Tough to look forward and imagine, say, Dera Mahabali Khan, with elevated interstate type roads, silent, clean hybrid/electric cars zooming by in orderly manner at 75mph, nuclear plants and all cables and telegraph lines underground, ppl actually waiting for the light to change b4 stepping into the intersection (in Japan there is an excellent reason for this - the cars come at 55mph through narrow lanes, assuming that u r not stupid enough to step on the road), etc. etc.

But I tell you, seeing the red resilient tile pedestrian mall all around The Round, all done in the last 6 months, instead of the Runway-Buster battleground type disaster that existed for 40 years before, was such an eye-popper.

But $1T spent on infrastructure as a down payment just to pump up manufacturing investment?? WHAT economic meltdown???

Presumably, those who invest that $1T will expect, say, 6 to 10% pa ROI, hey?

enqyoob · Post by **enqyoob** » 06 Aug 2010 12:39

SwamyG, serious question. Would you be willing to quit your job and go work in a factory at lower than minimum wage? Would you want your kids to work there when they grow up?

In an age in which people will not work below a certain wage you're insisting that they drop those pretenses and go work in factories...realistic?

Do factory jobs of the future in Khanate or Japan, for example, HAVE to be at such low wages? Isn't automation to such a level that, say, an auto assembly line worker is basically a Robotic Machine Inspector/Accountant/Scheduler (i.e., essentially white collar job)? How much repetitive manual labor HAS to be involved in manufacturing?

Neshant · Post by **Neshant** » 06 Aug 2010 12:58

Hari Seldon wrote:TAE tweets:
A trend that hasn't gone unnoticed even in the khanate. The median wage fell in real terms from the 70s onwards when manufacturing hollowed out and income disparity rose to pre-depression levels.

US is facing a serious problem. Even using the fake govt CPI inflation figures being used, real personal income levels have stagnated since the 70s. This despite a staggering 20% increase in working hours. And that was against the backdrop of a growing economy from 1980 to 2007 (even if you discount the fact that the bubble being blown from 2000 to 2007 had no productive component)!

Now with the lack of any new, productive industry since 2000, and a whole lot of scamming going on in the useless financing & high rolling sector along with money printing and soon higher taxes, its without a doubt living standards are going to crash.

The only good news is that all the idiot keynesian economists, money counterfeiters, central bankers, public sector unions and various other bailout hounds..etc are going to be caught with their pants down. The banking 'industry' has meanwhile done an admirable job of unloading their losses onto suckers down the line who will face huge tax increases pay for it.

vina · Post by **vina** » 06 Aug 2010 13:24

Aha.. Enqyoob-ud-din-al-Gas-Turbiney khush hua!.
Wall St faces scepter of lost trading units

But on Washington’s orders, Goldman is now considering a step that once would have been unthinkable: disbanding the corps of market wizards at the heart of its lucrative trading operation.

Under the new Dodd-Frank financial regulations, Goldman must break up its principal strategies group, the wildly successful trading unit that has helped power the bank’s profits. Goldman is considering several options, including moving the traders to another division or shutting the unit altogether, according to people briefed on the matter.

Raja Bose · Post by **Raja Bose** » 06 Aug 2010 13:31

All this doom and gloom is making a nanha mujahid with his meager savings of a few khota sikkas go

and making him wonder whether to buy a giant freezer and stock it with pork bellies.

ShivaS · Post by **ShivaS** » 06 Aug 2010 13:40

real personal income levels have stagnated since the 70s. This despite a staggering 20% increase in working hours. And that was against the backdrop of a growing economy from 1980 to 2007 (even if you discount the fact that the bubble being blown from 2000 to 2007 had no productive component)!

Now with the lack of any new, productive industry since 2000, and a whole lot of scamming going on in the useless financing & high rolling sector along with money printing and soon higher taxes, its without a doubt living standards are going to crash.

Consumers cut back in western world falling demand for goods.
Falling demands for finished goods and raw materials (commodities)
Surplus production in supplying nations (PRC)
Nations start dumping to scramble for market share (in the short as local demand can be substituted right away) and at the same time adjusting productions rates (cut backs, diversify, alternate applications).
This leads to recession (in the short run) in the developing nations or rapidly developing nations (as they more tightly coupled to western demands) and also stagnation, which leads to further price drops (unless alternative markets start to pick up slack)

So the forecast is general slow down of economies and (tax) revenues for govermads.
Panacea, increase local consumption and develop African markets

Neshant · Post by **Neshant** » 06 Aug 2010 15:02

passing on losses to suckers down the line - that's the sum total of keynesian economics.

---------

An August Surprise from Obama?

Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages – one in five – are underwater with negative equity of some $800 billion. Recall that on Christmas Eve 2009, the Treasury Department waived a $400 billion limit on financial assistance to Fannie and Freddie, pledging unlimited help.

The political calculation is that the number of grateful Americans would be greater than those offended that they — and their children and their grandchildren — would be paying for someone else’s mortgage woes.

http://blogs.reuters.com/james-pethokou ... rom-obama/

abhischekcc · Post by **abhischekcc** » 06 Aug 2010 17:09

Investment banker girls (the ones I know of) are nutcrackers. The ones I met for marriage chit chat were not IBs, they were normal bankers - make money by lending to customers, not scamming them.

One of the great advantage of a banker wife is the loan rates come at concessionary levels.

-------------------------

My idea is certainly not that India is a cheap version of America. It is that urban India is

(a) overpriced

Tell me about it.

(b) dismal in quality of services

Tell me about it. Even the most posh colonies in Dilli suffer from water shortages - can you believe that?

(c) more corrupt than the Wild West and Africa combined

I don't know about this. I do know that the common people do not mind grand larceny at the top as long as they also get to improve their lives.

(d) lacks the basic controls that America instituted because of hard experience over 200+ years

This is completely wrong. If America is so learned about financial controls, why did they repeal the Glass Steagal Act, and that in the year following the LTCM disaster? I mean, when I look back at that sordid affair, I feel regulators and IBs learnt all the wrong lessons. After the LTCM blowout, everybody agreed that GSA was the one thing that prevented the problem from spreading to the general banking sector and the economy. But why did they repeal the act then, did they WANT to have a grand recession?

As long as Indian policy works to enrich Indians at all levels (not just the top), it will do just fine. This is what American policy has forgotten. And yes, I agree that Indian policy under UPA is trying very hard to forget.

SwamyG · Post by **SwamyG** » 06 Aug 2010 18:09

See my reply in blue

Carl_T wrote:SwamyG, serious question. Would you be willing to quit your job and go work in a factory at lower than minimum wage? {Absolutely not, but if they fire me and I don't have any other choice instead of being unemployed and still have some years left in me, I would go and work. If this happens near my retirement age, I would just retire} Would you want your kids to work there when they grow up? {It depends. I think you do not have kids now, so what I say might not make sense. As an aging parent, I like my kids to be first healthy, second happy and be good humans. Yes, I don't see a janitor's job or a menial job very glamorous and appealing. But when manufacturing returns, there would be myraid jobs available. So if these jobs make my kids happy and keeps them fed, then I would have lesser complaints}

In an age in which people will not work below a certain wage you're insisting that they drop those pretenses and go work in factories...realistic? {if manufacturing and IT services come back to USA, the wages for these jobs would increase as well}

SwamyG · Post by **SwamyG** » 06 Aug 2010 18:16

Shiva garu: When the commodities demands fall down because of reduction in Western consumerism; wouldn't commodities become cheaper for India, then? If the domestic consumption, which is becoming American style in the cities, but still shows sanity elsewhere continues to demand, then India could get these commodities at a lower price than what it is getting them for,no? Am I correct?

ShivaS · Post by **ShivaS** » 06 Aug 2010 21:42

Yes they will fall and we often see that Iron ore prices, when steel production dips, copper prices fall when electrical goods / power equipment / electronics demands fall.

But fair market and fair price system will work only when the watch dogs are not sleeping worst case of sharing beds with scamsters we have recently in moody ratings, brokerage firms and Madoff to name a few.

Such price drops may or may not be passed on to consumers unless the commodities off take slow down substantially.

The price of Pamolean oil and Malaysian out put is largely dependent on peanut production in India (remember the days of late 1970s and early eighties when cooking oil was rationed in India and sold through PDS). Now sunflower cultivation is big for oil, Corn also (at least in US for corn oil , peanut cultivation is controlled by permits in US, President Carter holds one such permit, the peanut and sugar {beat and corn Sugar} lobby is very strong as a matter of fact if US normalizes relations with Cuba, cuba will kill all US sugar plants that are dependent on Beet and Corn, the cola and chocolate lobby is fighting this battle for allowing Sugar imports for few decades and losing all the time)

In nut shell yes it will subject to certain (some above mentioned).

By the way please call me Shivas Regal it uplifts my spirits (even if J&K is burning or CWG stadia falls!

)

SwamyG · Post by **SwamyG** » 06 Aug 2010 22:53

Sri Sri Shivas Regal garu: Are you saying, even if the Western demand for commodities fall, because of speculation (and other reasons), commodities will not be cheaper for Desh?

Hari Seldon · Post by **Hari Seldon** » 07 Aug 2010 07:09

Kinda OT.

A series of color pictures from the late 30s and early 40s USA, courtesy the Library of congress.

http://extras.denverpost.com/archive/captured.html

Amazing how unvarnished and real those people and times look. Like SDRE environs almost, in some scenes.

Singha · Post by **Singha** » 07 Aug 2010 07:57

that was a different country. sure it had its racial problem , but most people worked with their hands and the US was a manufacturing and farming superpower. the virus of deploying others money and taking a cut on it as a way to make living hadnt entered the gene yet. I guess the std of living was also way lower and no credit-on-tap was available on buy now pay later basis.
much less consumerist culture.

Sanjay M · Post by **Sanjay M** » 07 Aug 2010 08:30

Neshant wrote:passing on losses to suckers down the line - that's the sum total of keynesian economics.

---------

An August Surprise from Obama?

Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages – one in five – are underwater with negative equity of some $800 billion. Recall that on Christmas Eve 2009, the Treasury Department waived a $400 billion limit on financial assistance to Fannie and Freddie, pledging unlimited help.

The political calculation is that the number of grateful Americans would be greater than those offended that they — and their children and their grandchildren — would be paying for someone else’s mortgage woes.

http://blogs.reuters.com/james-pethokou ... rom-obama/

If Obama did this, it would be absolutely insane. He likes to compare himself to JFK - well, he'll certainly end up like JFK if he betrays so many law-abiding people with such a stunt.

The phrase "moral hazard" would be reduced to a mockery.

I think it's best that the Democrats lose control over Congress, to reign in their power. Otherwise, if they go for stunts like that, they'll cause a civil war.

Hari Seldon · Post by **Hari Seldon** » 07 Aug 2010 08:54

How quaint that our heated discussions here on this dhaga find resonance outside as well.

Raghuram Rajan on India’s ‘Fault Lines’ (WSJ)

Neatly sums up the gists of what we've all been trying to uncover and decipher here only.

Chicago Booth economist Raghuram Rajan said he wanted to get past the “greedy bankers” and “lazy regulators” explanations for the economic crisis that slammed the U.S. in 2008. What he came up with: Income stagnation for the U.S. middle class.

I distinctly recall a video from some yrs ago of Smt Liz Warren making these same points very articulately only.

“From the household perspective it means you’ve got consumption going up, wealth going up and you don’t focus on your stagnant income,” he said, calling it a “populist” solution to growing income inequality in the U.S. that both Democrats and Republicans could live with.

More difficult solutions would have involved figuring out how to increase jobs and real wages for workers with only high school degrees or how to increase education levels and skills to allow more Americans to qualify for higher-paying jobs.

That bolded part is crucial. Not evceryone in however advanced an ekhanomy, when it gets as big as a 100 mil+ population, can be highly educated and qualified. The point is to ensure a decent Q-e-L for the high school grads and dropouts. Else they become part of the problem and not the solution. The so-called 'greatest generation', that fought WWII and who as children witnessed the great depression were lucky that even a high school dropout then could aspire to a solidly middle class existence via a blue collar job in Detroit or Bethlehem steel or something.

When he was in New Delhi Thursday evening for the official release of the Indian edition of the book, which has an extra chapter on India, Mr. Rajan drew parallels between the two nations.

Aha, exactly as we have been doing here on this thread past few days, eh?

The University of Chicago economist, who is credited with being one of the few people to point out looming problems with the previous economic boom while others were still celebrating it, said that in India most people in rural areas still do not have access to transportation to places where there are jobs. They also lack the health insurance and savings they need to deal with emergencies.

“There’s a lot of room to go in trying to bring this population into the growth process,” he said.

He didn’t spell it out, but his remark sounded like a subtle warning to India to be careful about how it addresses its masses of have-nots – an admonition to carry out the difficult long-term investments in its people rather than to offer short-term fixes. He also reiterated concerns he’s raised in the past about India’s rich.

Which is why I say, follow the example of the best practices from India's different states. Most notably, learn what to do from Gujarat and what not to do from the commie utopia of West Bengal.

“I agree there’s a lack of inclusion – too many people are too poor – but there there’s no doubt a huge middle is opening up,” said Mr. [Montek Singh] Ahluwalia. “In the bottom 30 or 40% not as much is happening as it should.”

Read it all.

ramana · Post by **ramana** » 07 Aug 2010 09:19

Forbes:

Why big mistakes happen

Tries to unravel the decision drivers that led to mistakes in complex systems.

ramana · Post by **ramana** » 07 Aug 2010 09:25

Hari Have you read Robert McElvaine's works on the Great Depression and the recent events?

http://en.wikipedia.org/wiki/Robert_S._McElvaine

Read this one:

IF (ECONOMIC) HISTORY DOESN’T REPEAT ITSELF,DOES IT RHYME?

Mind you he is a historian!

ShivaS · Post by **ShivaS** » 07 Aug 2010 09:31

The dwindling middle class aka salaried (blue, white, brown collar) class has been the bane of the US economy for a while. That is why I feel Nixon/Regan/Clinton most importantly Jack Welsch are the villans of US decline. Jack welch sold the snake oil of PRC opening up billions to be raked up in China. No MNC has made dime profit by selling US made product in PRC till date.The big jokers on CNBC touting that PRC market is going to open up for US big were all con artists.
PRC is worst enemy of US compared to the Russians. They (uncle) propped PRC to contain Russia, They propped terrorism (trans national) to beat Russians in Afghanistan... now you see the results.

The property of US was based on making an equilizer society with in ambit of free and fair captalism. Watch the series on National Geographic on the Making of America.

It is the growing income disparity that will lead to the end of US prosperity and equity of American dream.

ShivaS · Post by **ShivaS** » 07 Aug 2010 09:35

Exactly my mantra too ward off recessions and stagnation is develop internal income levels access to markets and products.

Carl_T · Post by **Carl_T** » 07 Aug 2010 09:52

SwamyG wrote:{if manufacturing and IT services come back to USA, the wages for these jobs would increase as well}

Manufacturing and IT services jobs will not come back to USA unless the wage levels decrease until the US worker is paid in a Chinese salary. By insisting that manufacturing jobs come back to US, you're essentially saying that highly qualified people start working jobs for lower wages (AKA get poorer)....something they will never willingly do, the US is far too rich to do that, even in the middle of a recession. The way forward has to be in investing in the education of the lower and lower middle classes to develop a highly skilled workforce that can maintain a competitive advantage in the world.

One of the reasons the wage gap has been widening is because the US has done a terrible job of educating its lower middle classes.

Carl_T · Post by **Carl_T** » 07 Aug 2010 09:55

ShivaS wrote:Exactly my mantra too ward off recessions and stagnation is develop internal income levels access to markets and products.

What do you mean?

enqyoob · Post by **enqyoob** » 07 Aug 2010 10:01

Agree with Neshant 405% on this:

Now with the lack of any new, productive industry since 2000

This is the Core Issue, as Jarnail "Gola" Musharraf used to say.

And it is why BO is pumping gazillions into "Energy" and "Smart Grid" HOPING that a little bit of that may trickle down and water something that actually grows big. Looks quite disorganized yet, but my bet is that in 3 years time, these dhagas will be full of the hype about the New Energy E-Khanomy.

Indicator:

My 6th cousin thrice removed was vijiting NASA HQ in DupleeCity a few mahine past. There was some wait at the entrance because the usual efficiency of NASA Security was in evidence.

The guy his team was going to see came down, and was apologetic about the wait, but then said:

u r lucky u r not visiting DOE - I tried going there recently and the line was an hour long

When the Khanate does things, it really does them on a grand scale.

Mort Walker · Post by **Mort Walker** » 07 Aug 2010 10:24

And it is why BO is pumping gazillions into "Energy" and "Smart Grid" HOPING that a little bit of that may trickle down and water something that actually grows big. Looks quite disorganized yet, but my bet is that in 3 years time, these dhagas will be full of the hype about the New Energy E-Khanomy.

The grid needs to be modernized. With all sorts of taxes on carbon emitting fuels, plug-in hybrid cars and subsidized wind mills will make the grid modernization necessary. I'll take your bet that in 3 years we won't be talking about the new "E-Khanomy", but rather the $3T GDP of the Indian economy. And more than likely BO will be gone.

Hari Seldon · Post by **Hari Seldon** » 07 Aug 2010 10:26

Looks quite disorganized yet, but my bet is that in 3 years time, these dhagas will be full of the hype about the New Energy E-Khanomy.

I certainly hope so.

BTW, the notion that the dhaga will be around in 3 yrs is impresses me even more.

Ideally, the meltdown would be history rather than current affairs by then and the dhaga can be trashed or archived or both. But then, what are the odds of the crisis becoming history by 2013-14?

When the Khanate does things, it really does them on a grand scale.

400%.
And therein lies hope for the world. Genetic engineering, fusion based energy, some such miracle is what we all hope for. Unkil has also shown it makes mistakes on a grand scale too. And it was nice to have the rest of the world eager to foot the bill by rushing ever more capital onto US treasury market safe-shores. Let us not underestimate the power of having a cheap source of capital fund ambitions on a grand scale. Ukstan had one such cheap source o capitive capital - all the way till 1947. We know the wonders it worked for them.

Neshant · Post by **Neshant** » 07 Aug 2010 10:32

Hari Seldon wrote:Kinda OT.

A series of color pictures from the late 30s and early 40s USA, courtesy the Library of congress.

I always wonder why men from that era wore hats. I've seen photographs of downtown US in 1930s/40s and every guy there has a hat on. When did the hat wearing craze die out?

Mort Walker · Post by **Mort Walker** » 07 Aug 2010 10:36

^^^In the early 1960s and onwards after central HVAC became more common. Its the same reason why in desh most people wear full sleeve shirts.

Sanjay M · Post by **Sanjay M** » 07 Aug 2010 11:46

Mortgage Forgiveness? Forget It

enqyoob · Post by **enqyoob** » 07 Aug 2010 12:24

When did the hat wearing craze die out?

When ppl quit having to spend much time out in the sun or cold (i.e., cars), and also after the Zinedine Zedane hair style became halal. Both the Western sun and the Northern cold are swift killers if you don't protect your head.

Anyway, the thread should be around in 3 years, waiting for Acharya's End-e-Duniya Prediction to come true.

BTW, today's E-con-o-comic times says:

Londonabad, Aug. 6:
Copper fell in NY and Londonabad out of concern about the bahar-dekh for real estate markets in China. ..

China's banking regulator told lenders to include worst-case scenarios of prices dropping 50% to 60% in cities where they have risen excessively.. the country is the duniya's biggest user of copper.

SwamyG · Post by **SwamyG** » 07 Aug 2010 18:34

Again read my words, in blue, between your lines.

Carl_T wrote:By insisting that manufacturing jobs come back to US, you're essentially saying that highly qualified people start working jobs for lower wages{first, show me how you reach that conclusion, you seem to be under the impression, if a country has a manufacturing industry then there would be no high-wage jobs} (AKA get poorer)....something they will never willingly do, the US is far too rich to do that, even in the middle of a recession.{you know how many people are unemployed, stopped looking for work; how the median income has been dwindling, right} The way forward has to be in investing in the education of the lower and lower middle classes to develop a highly skilled workforce {to do what?} that can maintain a competitive advantage in the world.{in what?}

One of the reasons the wage gap has been widening is because the US has done a terrible job of educating its lower middle classes.{tell me what kind of jobs do you have in mind for these 'educated' middle classes}

ShivaS · Post by **ShivaS** » 07 Aug 2010 18:54

The forbes article tries to sanatize the deliberate effots of greed and short cuts adopted by corporate honchos

SwamyG · Post by **SwamyG** » 07 Aug 2010 19:04

Hari garu: It is funny how these economics professors fight, especially if the belong to other school or political ideologies. Stiglitiz does not waste time to draw knife on "Chicago Boys". Krugman is the like our Amitab Bachhan - the angry young man, except Krugman is no longer young. But he writes with great deal enthu. All these economy professors are writing books and making money when the depression reigns

As for the standard of living, it has to come down in the West, if the East has to lift itself up even a little. USA is safe as long as it has clean water & air, fertile lands and ensures food safety. It pays to have vast land under control.

SwamyG · Post by **SwamyG** » 07 Aug 2010 19:22

Sanjay M wrote: I think it's best that the Democrats lose control over Congress, to reign in their power. Otherwise, if they go for stunts like that, they'll cause a civil war.

The leaves in your "tea-bag" must be really giving you good strong tea

Fox News will have live footage of the war and analyze the reasons, forgetting it played a role in starting it. So let us get this straight. In America the agriculture corporations* get subsidies, airline industries get bailed out, insurance and banking sector gets money from the government, mortgage brokers, real estate agents, politicians, lobbyists ityadi escape the wrath of public for all the flaws of the system.

Rights? yeah in Amikhan Corporations have more rights than Humans. Imagine, talk of even helping the aam jane and joe, for a change. The horror!!! Tax breaks for the rich. Yaee.....money for the poor...Oye civil war onlee.

So one party talks about stopping outsourcing, bringing jobs back, keeping the environment clean, advocating new energy sources, health care for all, tax fairness, corporate responsibility.....and we see civil war cries. Wow, such is the state of Amirkhan is this what we want in desh and around the globe too? Why can't we gloat when such a system hits hurdles, huh?

* - Only about 2% of American population are in farming. So the subsidies go to a select few, unlike say subsidies in India.

Added: Obama has been a major disappointment. He is in the pockets of fraudsters as much as all the previous Presidents.

Sanjay M · Post by **Sanjay M** » 07 Aug 2010 21:35

^^^ This is called "Race to the Bottom" (aka. "Joe across the street beats his wife, so why can't I?"

Just because some undeserving people got bailed out, you'd argue that more undeserving people should get bailed out?

Those who would be left holding the bag are the people who lived responsibly, and didn't take ridiculous risks or live beyond their means.

As if bailout money is just arriving from the sky, like mana from heaven!

That "money" is being supplied by robbing others who lived responsibly.

vina · Post by **vina** » 07 Aug 2010 21:54

N^3 guru, the crores per sqft at the big 'round' is an exception. So is the prices near MG Road, Kodakara.

Ah , Diyar Enqyoob-ud-din-e-Gas-Turbine, if you are looking for "crores" per sqft, it is the near the MG Road not in Kodakara, Kerala, but Bangalore Kerala.

There area couple of high rises, including a Faux mini Embyre Ishtate Puilding of Noo Yawk replica in Vattal Milagu road in Bangalore Kerala.

There is an ultra swanky mall there with most of the top end designer stuff from anywhere in the world (think Chanel, Coach, Burberry , Salvatore Ferragamo etc) and there are also apt complexes and serviced apts there.

Per what I hear, the price of a top end pad there is hold your breath Lupees Thees Karod onree with maintenance of paanch lakh prati maheena onree.Now even by Manhattan stds, those numbers makes you stop and take pause.From what I hear, one Lt Jarnail (not Full Jarnail mind you, but still Lt Jarnail in the General Staff with chankian strat-e-jees and special projects and outreach activities responsibilities , aka , Raa agint) of one of the IT/Vity companies in Bangalore has picked one up. Kind of takes your breath away really. Those sorts of investments are made solely to diversify into different asset classes.

Kaala dhan cant do much, because those kind of investments are right in your face and will have to be accounted for and kaala dhan there can invite a sure tax raid. Kaala dhan is for Gold biscuits from the friendly neighborhood smuggler or binami txns in land ityadi and at that scale needs political cover. These kind of things will be paisa fully accounted for and as pure as the driven snow.

SwamyG · Post by **SwamyG** » 07 Aug 2010 22:05

Sanjay: So you support bailing out Corporations but not the actual living-breathing people, eh? Were were these arguments when the Corporations were helped to cover their irresponsible behavior? Tab, amirkhan ka dimag gaas charna gaya tha kya?

derkonig · Post by **derkonig** » 08 Aug 2010 00:09

So is it QE 2.0 in massa?

Neshant · Post by **Neshant** » 08 Aug 2010 00:38

SwamyG wrote:Sanjay: So you support bailing out Corporations but not the actual living-breathing people, eh?

Bailouts are nothing more than passing the bill onto suckers down the line. To give a person a bailout is to make someone else pay for it. Eventually there will be a revolt among people who are productive in society who find they are working only to pay off the debts of others.