[10:35 AM, 12/15/2019] Jiten Patel: Money Printing and Current Market and Behaviour Pattern ......
Friends as we know from 2008 till date all the Government of the World have been Printing Money in their respective currency which till date have resulted trillions of dollars of excess money in the world economy......
Now as one can see these printed money have still not made its way back in the economy because of the Economic Environment which is having a very slow growth.....
Now the reason for such a slow growth rate of economy is because of the human psychology...... because the environment and the atmosphere of business all around are emitting negative news the money which is being printed is not finding it's way to ignite the spending habits and behaviours of the people.....
The money is being kept in the locker of the people and because of the fear of worst days ahead people are not spending and protecting their money by keeping in Vaults and Lockers ......
Sooner or later these habits and behaviours is going to change once the human sentiments changes for good ..... people once have started having faith in the economy improving will start spending and the money which they have stored for safety in Lockers and vaults will eventually finds its way in the form of Spending..... and Spending will result in improving the Economy......
And finally the printed money will start rotating in the economy.....
Once this money comes in Rotation one will not be even able to understand the Boom in the Economy and the changing sentiments of human behaviour and habits......
Once these loop of doom to boom starts rolling which will eventually happen......God help us because this boom will be the mother of all Booms...... because the amount of money which was printed and still being printed is going to create a huge Boom and finally the biggest havoc thereafter.....
But still the time has not arrived as of today but it will surely arrive..... the time period when the above will happen no one knows but surely we are going to see the biggest boom in centuries in coming decade or so.......
The above can be beneficial to long term Investors who have the vision of predicting the future......
IT is my personal opinion and view only and not a recommendation to buy or sell and I reserved to be proved otherwise also.......
[11:21 AM, 12/15/2019] Jiten Patel: Indian Economy Road path of the future.....
One will never ever be able to understand what the Indian Government did and is doing for the good of the Economy....
From 2014 onwards it allowed financial institutions to fail.... Corporate businesses to fail..... Slow end to Corruption..... curbing government expenditure......taming inflation...... keeping a check on black money and shifting the economy to White Economy.....
And there are hundreds of other
reasons......
Now if one believes in free economy and welfare of the economy that what government is doing is exactly what is expected from the country's economy to prosper down the road......
The Money which was easily available to selected few have disappeared and money is difficult to get.....
Basically the transition phase which we are going through in last few years and the tears which we have shed.....in coming few years are going to be just wonderful and imagine with the amount of money printed.......
USA government did not clean up its systems after 2008 crash and started to infuse printed dollars..... while our government took harsh decisions by letting the economy takes its own course and letting it settle in Equilibrium without government interference ......
The path chosen by Indian Government is a harsh one but it will pay off Big Time eventually during Boom and Doom time also......
[1:02 PM, 12/15/2019] Jiten Patel: I sometimes wonder how on earth people with phenomenal visions and outstanding capabilities, building exceptional businesses, get wrecked through their very own blunders and missteps.
Just look at the recent instance of Zee Entertainment creator, the legendary Subhash Chandra, who had to secede his control of his baby, which he created and nurtured since its beginning. Single handedly, he transformed the way Indians entertain themselves through televisions. Even the Indian diaspora the world over, have been hooked on to his wonderful creations for several decades. While he entertained one and all, he could not keep entertaining himself!
There are many instances of such brilliant creators failing to continue to capitalise on their wisdom.
Think about the way Indians fly. The bench-marking of quality and service in the airlines was changed by one man – Vijay Malia. He is now fighting hard to fly away from being imprisoned.
Naresh Goyal, through his airlines Jet Airways, changed forever how the Indian carriers need to function – punctuality with professionalism. His company is now bankrupt, failing to exploit the market he himself created.
Instances are unending.
The man who taught Indians to enjoy their cup of coffee, could not enjoy his life – VG Siddhartha of Coffee Café Day had to end his life untimely.
Hari Sankaran of IL&FS, who innovated infrastructure funding business structure in India, got entrapped in the hubris created by his own brilliant mind. Same is the case of Yes Bank’s Rana Kapoor, who created a great institution almost from a scratch, ending up getting shunned by the country’s central bank, being highly dissatisfied with his actions on inappropriate lending practices.
What could have gone wrong?
These were all brilliant CXOs. They envisioned a plan, ran around to garner resources, invested extraordinary efforts to carry out their intended goals and marketed their products and services with unrivalled zeal. But, yet they failed – miserably, in most cases. The big question is: Why?
Many, could be the reasons. Business environment could have undergone changes; new competitive forces may have cropped up creating significant difficulties; appropriate human resources may not have been found to deliver the plans; international players could have taken the wind out of the sail; and the causes could be plenty.
But would you believe that in most of the cases, market condition was not the sole reason of the business failures.
There were two simple reasons, which made the invulnerable, flounder.
Death Debt Trap
Many entrepreneurs get entrapped in the easy money of debt. There are two modes of business funding – equity and debt. Equity is own money, and debt obviously is borrowed money. When times are good and business plans look bright, money from borrowings often pour in. Many businesses take this easier route, assuming future cash flows will happily enable to pay the debt-liabilities, interest and instalments.
Often, cash flows of the future, do not stack up to the planned levels. Cash flow crisis are then mostly sorted with more debt. That leads to the whirlpool of debts – a virtual debt trap.
From Subhash Chandra to Vijay Mallya, from Naresh Goel to VG Siddhartha, all of them got mired in this quicksand of debt.
Have you ever heard of debt-free or lesser indebted companies going belly up? Perhaps hardly any!
Unethical ethics
There is nothing like practicing sound corporate behavior – good governance, as it is popularly called.
Provide goods and services to customers at a fair price with consistent quality, transparently depict the business performance and honour the commitments to the key stakeholders. This simple stuff, unfortunately, is not practiced many a time.
[1:02 PM, 12/15/2019] Jiten Patel: To gain short-term returns, long-term strategies are often conceded. Short cuts are made - accounting information doctored; quality compromised; debts taken for a cause diverted for non-declared purposes, and there could be plenty more.
From Hari Sankaran to Rana Kapoor and Vijay Mallya to Naresh Goyal, they are all being investigated by some government body or the other, for alleged unethical practices.
Have you ever heard of an ethical company not lasting long? Perhaps not.
Last words
In business schools and management books, long lectures take place and reams get written about dos and don’ts of successful entrepreneurship.
But very little is ever discussed on the botches and bungles which many businesses commit to trip and tumble.
Most infallibles fall on two simple stumbling blocks – excessive-borrowings and immorality. Believe it or not, these can be disentangled with some care and caution. Beware - debt and ethics cannot be taken lightly anymore in this changing world of business.
[1:02 PM, 12/15/2019] Jiten Patel: The above message is forwarded one
Friends as we know from 2008 till date all the Government of the World have been Printing Money in their respective currency which till date have resulted trillions of dollars of excess money in the world economy......
Now as one can see these printed money have still not made its way back in the economy because of the Economic Environment which is having a very slow growth.....
Now the reason for such a slow growth rate of economy is because of the human psychology...... because the environment and the atmosphere of business all around are emitting negative news the money which is being printed is not finding it's way to ignite the spending habits and behaviours of the people.....
The money is being kept in the locker of the people and because of the fear of worst days ahead people are not spending and protecting their money by keeping in Vaults and Lockers ......
Sooner or later these habits and behaviours is going to change once the human sentiments changes for good ..... people once have started having faith in the economy improving will start spending and the money which they have stored for safety in Lockers and vaults will eventually finds its way in the form of Spending..... and Spending will result in improving the Economy......
And finally the printed money will start rotating in the economy.....
Once this money comes in Rotation one will not be even able to understand the Boom in the Economy and the changing sentiments of human behaviour and habits......
Once these loop of doom to boom starts rolling which will eventually happen......God help us because this boom will be the mother of all Booms...... because the amount of money which was printed and still being printed is going to create a huge Boom and finally the biggest havoc thereafter.....
But still the time has not arrived as of today but it will surely arrive..... the time period when the above will happen no one knows but surely we are going to see the biggest boom in centuries in coming decade or so.......
The above can be beneficial to long term Investors who have the vision of predicting the future......
IT is my personal opinion and view only and not a recommendation to buy or sell and I reserved to be proved otherwise also.......
[11:21 AM, 12/15/2019] Jiten Patel: Indian Economy Road path of the future.....
One will never ever be able to understand what the Indian Government did and is doing for the good of the Economy....
From 2014 onwards it allowed financial institutions to fail.... Corporate businesses to fail..... Slow end to Corruption..... curbing government expenditure......taming inflation...... keeping a check on black money and shifting the economy to White Economy.....
And there are hundreds of other
reasons......
Now if one believes in free economy and welfare of the economy that what government is doing is exactly what is expected from the country's economy to prosper down the road......
The Money which was easily available to selected few have disappeared and money is difficult to get.....
Basically the transition phase which we are going through in last few years and the tears which we have shed.....in coming few years are going to be just wonderful and imagine with the amount of money printed.......
USA government did not clean up its systems after 2008 crash and started to infuse printed dollars..... while our government took harsh decisions by letting the economy takes its own course and letting it settle in Equilibrium without government interference ......
The path chosen by Indian Government is a harsh one but it will pay off Big Time eventually during Boom and Doom time also......
[1:02 PM, 12/15/2019] Jiten Patel: I sometimes wonder how on earth people with phenomenal visions and outstanding capabilities, building exceptional businesses, get wrecked through their very own blunders and missteps.
Just look at the recent instance of Zee Entertainment creator, the legendary Subhash Chandra, who had to secede his control of his baby, which he created and nurtured since its beginning. Single handedly, he transformed the way Indians entertain themselves through televisions. Even the Indian diaspora the world over, have been hooked on to his wonderful creations for several decades. While he entertained one and all, he could not keep entertaining himself!
There are many instances of such brilliant creators failing to continue to capitalise on their wisdom.
Think about the way Indians fly. The bench-marking of quality and service in the airlines was changed by one man – Vijay Malia. He is now fighting hard to fly away from being imprisoned.
Naresh Goyal, through his airlines Jet Airways, changed forever how the Indian carriers need to function – punctuality with professionalism. His company is now bankrupt, failing to exploit the market he himself created.
Instances are unending.
The man who taught Indians to enjoy their cup of coffee, could not enjoy his life – VG Siddhartha of Coffee Café Day had to end his life untimely.
Hari Sankaran of IL&FS, who innovated infrastructure funding business structure in India, got entrapped in the hubris created by his own brilliant mind. Same is the case of Yes Bank’s Rana Kapoor, who created a great institution almost from a scratch, ending up getting shunned by the country’s central bank, being highly dissatisfied with his actions on inappropriate lending practices.
What could have gone wrong?
These were all brilliant CXOs. They envisioned a plan, ran around to garner resources, invested extraordinary efforts to carry out their intended goals and marketed their products and services with unrivalled zeal. But, yet they failed – miserably, in most cases. The big question is: Why?
Many, could be the reasons. Business environment could have undergone changes; new competitive forces may have cropped up creating significant difficulties; appropriate human resources may not have been found to deliver the plans; international players could have taken the wind out of the sail; and the causes could be plenty.
But would you believe that in most of the cases, market condition was not the sole reason of the business failures.
There were two simple reasons, which made the invulnerable, flounder.
Death Debt Trap
Many entrepreneurs get entrapped in the easy money of debt. There are two modes of business funding – equity and debt. Equity is own money, and debt obviously is borrowed money. When times are good and business plans look bright, money from borrowings often pour in. Many businesses take this easier route, assuming future cash flows will happily enable to pay the debt-liabilities, interest and instalments.
Often, cash flows of the future, do not stack up to the planned levels. Cash flow crisis are then mostly sorted with more debt. That leads to the whirlpool of debts – a virtual debt trap.
From Subhash Chandra to Vijay Mallya, from Naresh Goel to VG Siddhartha, all of them got mired in this quicksand of debt.
Have you ever heard of debt-free or lesser indebted companies going belly up? Perhaps hardly any!
Unethical ethics
There is nothing like practicing sound corporate behavior – good governance, as it is popularly called.
Provide goods and services to customers at a fair price with consistent quality, transparently depict the business performance and honour the commitments to the key stakeholders. This simple stuff, unfortunately, is not practiced many a time.
[1:02 PM, 12/15/2019] Jiten Patel: To gain short-term returns, long-term strategies are often conceded. Short cuts are made - accounting information doctored; quality compromised; debts taken for a cause diverted for non-declared purposes, and there could be plenty more.
From Hari Sankaran to Rana Kapoor and Vijay Mallya to Naresh Goyal, they are all being investigated by some government body or the other, for alleged unethical practices.
Have you ever heard of an ethical company not lasting long? Perhaps not.
Last words
In business schools and management books, long lectures take place and reams get written about dos and don’ts of successful entrepreneurship.
But very little is ever discussed on the botches and bungles which many businesses commit to trip and tumble.
Most infallibles fall on two simple stumbling blocks – excessive-borrowings and immorality. Believe it or not, these can be disentangled with some care and caution. Beware - debt and ethics cannot be taken lightly anymore in this changing world of business.
[1:02 PM, 12/15/2019] Jiten Patel: The above message is forwarded one
No comments:
Post a Comment