Lesson from 2008 economic debacle: Live without debts!

Buying freedom without spending:

Year 2008 was a disaster for Middle Income group and for investors. People lost Money, homes, jobs and their way of living. The people who had gained from investments in few preceding years saw the tsunami of debacle wiping out gins within a span of few months.  However seeing the things so closely, it did make me think as to what lessons can be learned from the entire episode of collapse. I realised that the only lesson which can be learned, is to live without debts. That must sound incredulous to most. Actually there are billions of people who still do not borrow besides the other millions who are in debt right upto their nose. Continue reading

Borrowers' trap: Lend me money against my cheque, I shall return in 10 days!

Rupee-INR-Gandhi-1000-currency-note

© sandeepbhalla.com

Ever heard the preposition “Lend me money against my cheque, I shall return in 10 days!” or something similar. Borrowers are all around us. Often such preposition causes a dilemma. Accept or not to accept? What should be the excuse? If amount is small it is even more embarrassing. If a person from whom it is being borrowed is ill or indisposed, it should be embarrassing to borrower but it is not.

The debt business:

Long time ago I met a publisher who told me that ‘Borrowing’ is a latest business. Presently I am suing him in court for counterfeiting my books. But as an unscrupulous person, he knew the mentality very well. But it can not be generalized. But as far as strangers are concerned lending money is complete NO. But there are people around us act to be friends, neighbors, relatives etc. After are we are not going to sue them if they default. What about them? So the question is how to decide to lend or not to lend money? Continue reading

Borrowers’ trap: Lend me money against my cheque, I shall return in 10 days!

Rupee-INR-Gandhi-1000-currency-note

© sandeepbhalla.com

Ever heard the preposition “Lend me money against my cheque, I shall return in 10 days!” or something similar. Borrowers are all around us. Often such preposition causes a dilemma. Accept or not to accept? What should be the excuse? If amount is small it is even more embarrassing. If a person from whom it is being borrowed is ill or indisposed, it should be embarrassing to borrower but it is not.

The debt business:

Long time ago I met a publisher who told me that ‘Borrowing’ is a latest business. Presently I am suing him in court for counterfeiting my books. But as an unscrupulous person, he knew the mentality very well. But it can not be generalized. But as far as strangers are concerned lending money is complete NO. But there are people around us act to be friends, neighbors, relatives etc. After are we are not going to sue them if they default. What about them? So the question is how to decide to lend or not to lend money? Continue reading

Tacit Confession of guilt by Prime Minister Man Mohan Singh on economic crises

The guilt:

The Congress Government headed by Prime Minister Dr. Man Mohan Singh has completed 8 years in office. Before that BJP was in Government for mere five years. Since independence of India in 1947 different Congress Governments have ruled for about five decades but to tackle with inflation has been its dismal failure on all occasions. The fact that Prime Minister admits that situation of the nation is as worse as it was in 1991 amounts to an admission of guilt because in 1991 he had blamed the misrule of other parties in last 3 years for the escalating fiscal problem. The fact that he and this Government is in power for 8 years and it could do nothing to prevent the situation, is nothing but an admission of guilt of mis-governance.

The proof of guilt of mis-governance of nation and economy: Continue reading

Economy: Are we rushing towards Depression with help of Federal Reserve and RBI?

Rejoicing Stock Markets:

On 9th of October 2007, Dow Jones Industrial Index was 14164.53. That was the highest ever. In less than a year on July 15th 2006 it fell to 10962 and eventually hit 6626 on March 2, 2009. Last weekend on 14th September it hit a new recent high of 13593. Rejoicing that fed is keeping the interest rate at near zero and that Govt. will buy out the mistakes of private Corporations.

Zero rate interest:

Japan’s economy is in depression for more than a decade even though it is maintaining the rate of interest at less then 1%. Now the problem of prolonging the near zero (0.25% to be precise) rate of interest: Continue reading