Going Bust For Growth – Dr Raghuram Rajan

wealthymattersHere is the full text of the speech made by Dr Raghuram Rajan. As usual his speech has caused a flutter and consternation in some quarters. Assurances have been extended to people to calm them and reassure them that Acche Din will happen and not be a pipe dream. Believe whatever you choose to, but do read the speech below to get an idea of the world economy ,the problems in other countries and the constraints politicians round the world face. Then decide what you need to protect yourself from the shit floating round and then get ahead.

There are few areas of robust growth around the world, with the IMF repeatedly reducing its growth forecasts in recent quarters. This period of slow growth is particularly dangerous because both industrial countries and emerging markets need high growth to quell rising domestic political tensions. Policies that attempt to divert growth from others rather than create new growth are more likely under these circumstances. Even as we create conditions for sustainable growth, we need new rules of the game, enforced impartially by multilateral organizations, to ensure countries adhere to international responsibilities. Read more of this post

Kick The Blues


 I have realised that we are born with a sense of resilience, which activates when one is in despair. But you have to get out of that zone and move on. Even heartbreak has an expiry date……I am not a weak-minded person, who enjoys being depressed. I think self-pity is a great luxury. It is like a massage — it has a soothing and calming effect — but at the end of the day, you realise it’s not serving any purpose. I believe, instead of moping, confront your problem or pick up the phone, say what’s in your heart and sort it out. Sulking is only great between couples, if it leads to make-up sex! Otherwise, it’s a waste of time.-Karan Johar

Stock Market Cycle


The Lipstick Index

wealthymattersRecessions mean that Ferraris stay in showrooms and designer dresses on shop racks, but lipstick bucks the trend: in hard times, women buy more of it, as it is an affordable indulgence. That, at least, is the idea behind the “lipstick index”, a term coined by Leonard Lauder, the chairman of Estée Lauder, a cosmetics firm, in the 2001 recession. Believers in the theory trace the phenomenon back to the Depression, when cosmetic sales increased by 25%, despite the convulsing economy. But reliable historical sales figures are hard to find.

The growing popularity of lipstick in India seems to bear out this hypothesis.

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