Classic Raoisms
September 5, 2013 Leave a comment
Thank God RBI Exists
There has been a lot of media coverage on policy differences between the government and the Reserve Bank. Gerard Schroeder, the former German chancellor, once said, “I am often frustrated by the (Deutsche) Bundesbank. But thank God, it exists.” I do hope fi nance minister Chidambaram will one day say, “I am often frustrated by the Reserve Bank, so frustrated that I want to go for a walk, even if I have to walk alone. But thank God, the Reserve Bank exists”
Interesting Times
The Chinese have an adage: “May you live in interesting times.” I can hardly complain on that count. I had come into the Reserve Bank five years ago as the ‘Great Recession’ was setting in, and I am finishing now as the ‘Great Exit’ is taking shape, with not a week of respite from the crisis over the five years.
Getting Out a ‘Padmavyuha
Getting out of an expansionary policy is much more difficult than getting into it. It is like a Padmavyuha in Mahabharata — you know how to get in but not many people know how to get out. Read more of this post
If you are tempted to chase bank deposit rates by investing in co-operative banks,make sure that they are scheduled.
Every time the RBI announces an interest rate change do you start wondering how it will affect the prices of your shares,how much you can get on your fixed deposits,whether it is a good time to buy bonds or bond funds,how much your EMIs will cost etc.?Then reading the following article from today’s ET is a must.It is written by Madan Sabnavis, chief economist of CARE Ratings.
This article was published in today’s Mumbai Mirror.Reading it took me back to another time when India was a very different place.I was then still in school.India was anything but shining.Poverty and shortages were so much a fact of life that few of us really had an idea of how poor we were since everyone around us was in the same situation and most people had very little exposure to what was going on in the rest of the world.There was no talk of India being an emerging/emerged nation.We considered ourselves as belonging strictly to the Third World and few asked why we should not want better for ourselves.Read the article below and if you’re Indian take a minute to pat yourself on the back for how far we have come in 2 decades.Take heart from it and know that we have it in us to overcome out present problems.And remember the story so that we are never again in the same situation. 
wealthymatters 