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All News Analyses by this Author

MTM- Does Not Represent True & Fair Value

June 19, 2009

Analysis of:SEC won't suspend mark to market - source | money.cnn.com

Mark To Market(MTM) basis for valuation of INVESTMENTS made by BANKS shall distort Balance Sheets and published accounts of the Banks, and may Strangulate Economic Growth, particularly in periods when GOWTH is needed. Financial Institutions\Investment Banks\Pension Funds and BANKS make longterm investments in shares/stocks/govt. securities for long term growth benefits. Requiring them by law to value these investments at MTM principles regularly at weekly/ monthly/quarterly/yearly intervals is just like calling upon their managements to become market participants like speculators/hedge funds/derivative operators or BROKERS in CDS. BANKS are trustees of PUBLIC DEPOSITS. This is  the perception of the PUBLIC .  Unfortunately some banks mixed up the domain of their operations because of poor regulation or deliberate oversight by the REGULATOS.The need of the hour is Strict Surveillance, not making rules that kill the GOOSE that laid the GOLDEN EGGS that is-BANKS, Institutions of Growth

Private Equity Shall Return

April 13, 2009

Analysis of:Private equity money dries up for India Inc | economictimes.indiatimes.com

Fundamentals of the Indian Economy are intact. Temprorary withdrawal of funds has happened. GDP is still expected to grow at 6% in 2009 and reach 10 percent in 2011. India needs large amount of funds, which would give sustainable returns and growth. Nation is stable. Current account deficit is temprorary, particularly in 2008 because crude touched $147 a barrel at one time. Now it has stabilised at about $50- it is a bullish factor for the Indian Economy. Growth shall be strong in Motor Vehicle Industry, Steel, Banking & Services. No where else this sustainable/stable growth is possible. China, largely dependent on exports to USA shall be volatile, directly linked to revival in USA . It may not be a big competitor to India, for PE investors. India has young population, english speaking, very good at software services, banking. Moreover Indian Economy serves and depends on internal demand to the tune of 90%. Economy is slowly, but surely becoming competitive.

MTM- May Strangulate World Economic Growth

March 23, 2009

Analysis of:SEC won't suspend mark to market - source | money.cnn.com

Mark To Market(MTM) basis for valuation of INVESTMENTS made by BANKS shall distort  published accounts of the Banks, may Strangulate World Economic Growth particularly in periods when GROWTH is needed. Financial Institutions\Investment Banks\Pension Funds and BANKS make longterm investments in shares/stocks/govt. securities for long term growth benefits. Requiring them by law to value these investments at MTM principles regularly at weekly\ monthly\quarterly\yearly intervals is just like calling upon their managements to become market participants like speculators\hedge funds\derivative operators or BROKERS in CDS. BANKS are trustees of PUBLIC DEPOSITS. This is  the perception of the PUBLIC .  Unfortunately some banks mixed up the domain of their operations because of poor regulation or deliberate oversight by the REGULATORS.The need of the hour is Strict Surveillance, not making rules that kill the GOOSE that laid the GOLDEN EGGS that is-BANKS, Institutions of Growth

Auto Industry to come out of recession very soon

March 20, 2009

Analysis of:Bank makes company borrowing cheaper | www.ft.com

With the lowering of Bank rates in U.K and so also all over the World, our analysis confirms that the AUTO/AUTO Anciliary Industry segment shall be in the forefront as the economy turns around. Bank of England and so also many other Central Banks through out the World have started buying back Goverment Securities to flush the market with cash that is more liquidity. This shall lower the lending rates for the Industry, infrastructure projects, new plants , and also generate demand .Many projects/products would become viable for manufacture within UK. Auto industry is the one in UK, now under acute stress, like in USA. With revival, more employment, more jobs, demand for cars/motorcycles would be the first, particularly small cars, as it is the essential commodity for all commuters. UK is the competitive hub for auto parts also. Consequently when demand revives in USA/INDIA, large quantity of parts would also get exported- particularly the high tech items for autos/railways/airways.

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