Time has answers


GOD yes , this word comes out of us daily. The one who controls everything in this world. The one who influences everything in this world.  Exactly same is happening in last 3 months. There are 3 elements which are controlling, influencing the Indian economy. GOLD, OIL and DOLLAR. What a coincidence.  Rupee has been falling almost daily. OIL prices have been spiking almost daily and Dollar $$$$ i guess i don’t need to mention anything about dollar. And last but not the least the unrest in Syria.

Thousands of people dying and thousands protesting. Are we looking at a potential third world war ? I don’t know. With America scratching its head for attacking Syria. We already are hearing about Chemical weapons being used by the government of Syria against its own people. I never thought that a government would ever thing of doing it. How true this is , i dont know . But if it is true, its against humanity.

This Syrian unrest has actually shaken the whole world economy. Countries are already grouping together. With some against attacking Syria and some for. All we need is one small trigger to mess up the whole thing and what i was talking about as a potential third war will take its shape. We all know for fact that wars come with expenses and when i say expenses . Its not something about economy but also human lives. I dont know if this war is going to solve all the troubles or bring more. Time has all the answers. But do we really need a war ?

Remember the abottabad incidence where Bin laden was finally taken down. I am sure it has done justice to those who died in 9/11 but has it eradicated terrorism across the world . I guess we all know the answer.  So what is going to stop all this ? I guess all we can do is pray. Pray for humanity to survive and take its course to future.

For now this is Shwetal Signing off from this place.

Shwetal – An Avid writer.

The scariest moment is always just before you start.
Stephen King


By innovateinvestmentbanking Posted in Economy

Senators Move to Create 21st Century Glass-Steagall Act – Money Morning – Only the News You Can Profit From


Senators Move to Create 21st Century Glass-Steagall Act – Money Morning – Only the News You Can Profit From.

Warren, John McCain (R-Ariz.), Maria Cantwell (D-Wash.), and Angus Kin (I-Maine) introduced legislation that would again separate bank’s traditional activities (like deposits currently backed by the Federal Deposit Insurance Corp.) from riskier activities like investment banking, insurance underwriting, swap dealing, and hedge funds.

Glass-Steagall was repealed by Congress back in 1999.

When the news broke of Warren’s determined attempt to bring back Glass-Steagall last week, it covered front pages across the country and instigated a firestorm of commentary on the future of the U.S. economy.

The problem, of course, is the ability to cut through the hype and understand if financial reform is necessary to fix the U.S. economy.

Rarely do I find myself championing regulatory efforts by the Federal Government, but the financial sector is an entirely different beast from energy, agriculture, and other resource sectors.

But reinstituting key elements of the Glass-Steagall Act is just one step on a long return to sanity for the economy.

The End of Too Big to Fail

In 2008, as the financial crisis unfolded, many in Washington wanted to reduce the size of the banks, because they had grown too large and were considered “Too Big to Fail.” The government was about to throw billions of dollars into the bailout of the Big Banks.

But during the financial crisis, in order to stave off more bankruptcies, the Treasury Department actually made it easier for banks to grow even larger in a swath of mergers and acquisitions that led to a staggering concentration of wealth among the largest banks in the country.

“The four biggest banks are now 30% larger than they were just five years ago and they have continued to engage in dangerous, high-risk practices,” Warren said during a Senate Banking Committee hearing.

Meanwhile, attempts to curb Wall Street excess in 2010 with the Dodd-Frank Bill did little to clean up the system.

In the end, Americans ended up with a piece of toothless regulation. The law was quickly watered down by remarkable lobbying efforts by the financial sector, including an unprecedented effort to limit even the Volcker Rule, which aimed to curb proprietary speculation.

Now, Warren and her colleagues are aiming to create the 21st Century Act. According to our Shah Gilani, this new proposal would “would separate institutions with savings and checking accounts, in other words FDIC-insured depository commercial banks, from investment and trading ‘banks’ engaged in capital markets activities, most of which are on the border between speculation and manipulation.”

Here Come the Lobbyists

The reaction from Wall Street is predictable. The banks will say that increasing regulation on their activities will help facilitate another financial crisis.

Of course, this was also predicted by the banks in 1997 when regulators proposed overseeing the derivatives markets. After they lobbied to kill any regulation, 10 years later these toxic assets facilitated a major crash.

Instead, we should have listened to those who opposed the repeal of Glass-Steagall, because they too predicted a financial crisis would eventually result because of this deregulation.

At the time of its repeal, opponents of repeal argued that unshackling financial companies from regulations would enable them to shift their focus into unchartered areas of banking activity. As a result, these critics said, economic crisis was not just possible, it seemed inevitable.

Perhaps the most chilling prediction came from former Senator Byron L. Dorgan, Democrat of North Dakota just two days after the repeal of Glass-Steagall.

”I think we will look back in 10 years’ time and say we should not have done this but we did because we forgot the lessons of the past, and that that which is true in the 1930’s is true in 2010,” Dorgan said.

”I wasn’t around during the 1930’s or the debate over Glass-Steagall<” he added. ” But I was here in the early 1980’s when it was decided to allow the expansion of savings and loans. We have now decided in the name of modernization to forget the lessons of the past, of safety and of soundness.”

For many, this statement is a chilling reminder of how vulnerable the U.S. economy had become by deregulation of the banking sector in the late 1990s.

Just a Starting Point

Our Shah Gilani isn’t entirely optimistic that the law or reform will be passed. He cites the obvious problem in Washington that would essentially make it impossible to fix: Lobbying.

Wrote Shah: “The only problem with trying to make banking 21st century safe is that we live in the new old age of robber barons, and they are the bankers and politicians they’ve bought.”

But the another important aspect of the conversation is that other types are reform would be needed as well.

Real financial reform requires more than just reducing the size of the banks and limiting their commercial and investment activities. Canada, for example, had only a mild economic downturn despite having a highly concentrated banking sector.

It also requires the willingness to address other factors that played a key role in the financial crisis and were essentially ignored or gutted from the Dodd-Frank Act of 2010 after extensive lobbying efforts and threats that the sky was falling.

Perhaps it isn’t the size of the banks that matters, but instead the types of securities that banks are allowed to invest in and the amount of leverage they may possess.

Congress seems to be overlooking the fact that it was massive derivative positions that led to this crisis, acting like weapons of financial mass destruction. But Congress also must recognize that banks were allowed to return to pre-Depression levels of leverage in 2004.

While Warren is getting the spotlight, a more important matter is happening in the Senate. Two Senators are looking to pass legislation to reduce leverage and increase capital-holding requirements.

Sens. Sherrod Brown, D-Ohio and David Vitter, R-La., recently introduced a bill that would force “Too Big to Fail” institutions to hold more capital, thus reducing leverage and protecting against significant losses.

This will be a very hard fought battle with a lot of misinformation being spread about the impact that such regulation would have on the economy. Stay tuned, as we continue to weed through the lies in order to deliver the truth on what reform in Washington would really mean to Wall Street.


5 Warren Buffett tips


1. Spend wisely

If you buy things you don’t need, you will soon sell things you need. – Warren Buffett

Rule No. 1 : Never lose money. Rule No.2: Never forget Rule No.1 – Warren Buffett

2. Saving: Save for the unexpected

Don’t save what is left after spending; spend what is left after saving. – Warren Buffett

3. Think long-term and be patient

Life is like a snowball. The important thing is finding wet snow (opportunities) and a really long hill (long term). – Warren Buffett

4. Borrowing: Limit what you borrow

I’ve seen more people fail because of liquor and leverage – leverage being borrowed money. You really don’t need leverage in this world much. If you’re smart, you’re going to make a lot of money without borrowing. – Warren Buffett

5. Risk

Investing without knowing increases risk. However, instead of shying away from investing one should acquire knowledge to get it right.

Shwetal – An Avid writer


Change is constant…


Change is constant , everything else is variable. True it is. Its been what a decade , that we have seen a tremendous amount of changes in this world economy. Yes we have, especially after we were hit by the turmoil that began in 2007. Interestingly we not only saw the turmoil in the financial world , but we had a ripple effect of this on other areas. Fiscal deficits rose, imports and exports were hit, currencies started loosing their . It was hard to believe for me to see dollar hitting Rs38,Rs39. What more?

Every situation demands a change. This one too. I myself being into investment banking world thought about. Although i am just a pawn in this game of chess , but i think its our thought process that makes a lot of difference in this world. So i started thinking about it.


Cover (Photo credit: Wikipedia)

Now whats the most important thing for any company in this world ? Think about it . Its very obvious . Well the answer is its shareholders , investors. The key to remain stable or successful is to retain the confidence of the investors even if the water has reached the deck of your ship. This confidence will only can save your sinking ship. Well yes, didn’t we see many ships sinking. I don’t need to take names. 🙂 .

So , i thought of a platform. A platform where investors could interact with each other. More of networking. It was all about being social on a individual investment. So, think of a facebook page where individual investors would have access to each other .  This would give an opportunity for investors to interact with each other. May be your company might end up attracting more investors. A competitive way to get your sinking ship back to sailing. 🙂

Let me think more on it.

Shwetal – An avid writer.




Too crazy to be believed 50 economic stats…from 2011 courtesy below website.


The following are 50 economic numbers from 2011 that are almost too crazy to believe….

#1 A staggering 48 percent of all Americans are either considered to be “low income” or are living in poverty.

#2 Approximately 57 percent of all children in the United States are living in homes that are either considered to be “low income” or impoverished.

#3 If the number of Americans that “wanted jobs” was the same today as it was back in 2007, the “official” unemployment rate put out by the U.S. government would be up to 11 percent.

#4 The average amount of time that a worker stays unemployed in the United States is now over 40 weeks.

#5 One recent survey found that 77 percent of all U.S. small businesses do not plan to hire any more workers.

#6 There are fewer payroll jobs in the United States today than there were back in 2000 even though we have added 30 million extra people to the population since then.

#7 Since December 2007, median household income in the United States has declined by a total of 6.8% once you account for inflation.

#8 According to the Bureau of Labor Statistics, 16.6 million Americans were self-employed back in December 2006.  Today, that number has shrunk to 14.5 million.

#9 A Gallup poll from earlier this year found that approximately one out of every five Americans that do have a job consider themselves to be underemployed.

#10 According to author Paul Osterman, about 20 percent of all U.S. adults are currently working jobs that pay poverty-level wages.

#11 Back in 1980, less than 30% of all jobs in the United States were low income jobs.  Today, more than 40% of all jobs in the United States are low income jobs.

#12 Back in 1969, 95 percent of all men between the ages of 25 and 54 had a job.  In July, only 81.2 percent of men in that age group had a job.

#13 One recent survey found that one out of every three Americans would not be able to make a mortgage or rent payment next month if they suddenly lost their current job.

#14 The Federal Reserve recently announced that the total net worth of U.S. households declined by 4.1 percent in the 3rd quarter of 2011 alone.

#15 According to a recent study conducted by the BlackRock Investment Institute, the ratio of household debt to personal income in the United States is now 154 percent.

#16 As the economy has slowed down, so has the number of marriages.  According to a Pew Research Center analysis, only 51 percent of all Americans that are at least 18 years old are currently married.  Back in 1960, 72 percent of all U.S. adults were married.

#17 The U.S. Postal Service has lost more than 5 billion dollars over the past year.

#18 In Stockton, California home prices have declined 64 percent from where they were at when the housing market peaked.

#19 Nevada has had the highest foreclosure rate in the nation for 59 months in a row.

#20 If you can believe it, the median price of a home in Detroit is now just $6000.

#21 According to the U.S. Census Bureau, 18 percent of all homes in the state of Florida are sitting vacant.  That figure is 63 percent larger than it was just ten years ago.

#22 New home construction in the United States is on pace to set a brand new all-time record low in 2011.

#23 As I have written about previously, 19 percent of all American men between the ages of 25 and 34 are now living with their parents.

#24 Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.

#25 According to the Bureau of Economic Analysis, health care costs accounted for just 9.5% of all personal consumption back in 1980.  Today they account for approximately 16.3%.

#26 One study found that approximately 41 percent of all working age Americans either have medical bill problems or are currently paying off medical debt.

#27 If you can believe it, one out of every seven Americans has at least 10 credit cards.

#28 The United States spends about 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States.

#29 It is being projected that the U.S. trade deficit for 2011 will be 558.2 billion dollars.

#30 The retirement crisis in the United States just continues to get worse.  According to the Employee Benefit Research Institute, 46 percent of all American workers have less than $10,000 saved for retirement, and 29 percent of all American workers have less than $1,000 saved for retirement.

#31 Today, one out of every six elderly Americans lives below the federal poverty line.

#32 According to a study that was just released, CEO pay at America’s biggest companies rose by 36.5% in just one recent 12 month period.

#33 Today, the “too big to fail” banks are larger than ever.  The total assets of the six largest U.S. banks increased by 39 percent between September 30, 2006 and September 30, 2011.

#34 The six heirs of Wal-Mart founder Sam Walton have a net worth that is roughly equal to the bottom 30 percent of all Americans combined.

#35 According to an analysis of Census Bureau data done by the Pew Research Center, the median net worth for households led by someone 65 years of age or older is 47 times greater than the median net worth for households led by someone under the age of 35.

#36 If you can believe it, 37 percent of all U.S. households that are led by someone under the age of 35 have a net worth of zero or less than zero.

#37 A higher percentage of Americans is living in extreme poverty (6.7%) than has ever been measured before.

#38 Child homelessness in the United States is now 33 percent higher than it was back in 2007.

#39 Since 2007, the number of children living in poverty in the state of California has increased by 30 percent.

#40 Sadly, child poverty is absolutely exploding all over America.  According to the National Center for Children in Poverty, 36.4% of all children that live in Philadelphia are living in poverty, 40.1% of all children that live in Atlanta are living in poverty, 52.6% of all children that live in Cleveland are living in poverty and 53.6% of all children that live in Detroit are living in poverty.

#41 Today, one out of every seven Americans is on food stamps and one out of every four American children is on food stamps.

#42 In 1980, government transfer payments accounted for just 11.7% of all income.  Today, government transfer payments account for more than 18 percent of all income.

#43 A staggering 48.5% of all Americans live in a household that receives some form of government benefits.  Back in 1983, that number was below 30 percent.

#44 Right now, spending by the federal government accounts for about 24 percent of GDP.  Back in 2001, it accounted for just 18 percent.

#45 For fiscal year 2011, the U.S. federal government had a budget deficit of nearly 1.3 trillion dollars.  That was the third year in a row that our budget deficit has topped one trillion dollars.

#46 If Bill Gates gave every single penny of his fortune to the U.S. government, it would only cover the U.S. budget deficit for about 15 days.

#47 Amazingly, the U.S. government has now accumulated a total debt of 15 trillion dollars.  When Barack Obama first took office the national debt was just 10.6 trillion dollars.

#48 If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt.

#49 The U.S. national debt has been increasing by an average of more than 4 billion dollars per day since the beginning of the Obama administration.

#50 During the Obama administration, the U.S. government has accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office.


Polinomics…. A lovely relationship


I was into a relationship few years back , and i learned many things out of it.  The most important part in any relationship is , you have to complement each other . As i have read this many times that a relationship is not about two perfect people coming together but its about two imperfect people coming together and complementing each others qualities and eventually falling in love to build a relationship. Even science says the same ” Opposites attract” 🙂 . Else you got a bumpy ride coming your way. In this world , do relationships apply only in our personal lives. I am sure the answer is no. And so you all will agree.

Economics , a beautiful concept which the whole world is working under. A framework. But Economics doesn’t work alone , every thing in this world is related. But now the best part is with whom. I say “Politics”. Both Politics and economics are not the same thing. They are exactly opposite concepts but they influence each other. And if a country’s economy is prospering , they complement each other. Not many people might agree to this. We have reforms , both political and economical.

I remember, in India until 1994 or may be 1995, i would only see either fiat or Maruti 800 CC , vehicle running on roads. And it used to be luxury , now  i am talking from a common mans perspective. Thanks to Dr. Manmohan Singh whose implementation has actually exposed Indian Economy to other countries. And that is why we have Honda , Volkswagen and BMW running on the roads.

Economic reforms, the way they are implemented , a lot depends on the political leadership of a country. A good leadership would lead to good reforms and eventually a good GDP.  India today is largely seen as a economy , which every country is eying. Right from the point of resourcing and outsourcing.

A good political leadership will lead to a good economic reforms for a country.

Now doesnt it automatically says, politics and economics are related. So let them be into a good relationship. And i call this relationship “Polinomics”

Enjoy reading and keep liking.

Shwetal- An Avid writer.


Innovation a cut throat competition


Each time i think of a product , there is only one question that comes into my mind . What next ? If this product is here. How long would it sell ? One year 2 or maximum 3 years. And after that you need something new. But what. We have so much of competition around in the market . That you cannot survive without innovation.

Lets take a classic example. Apple Inc. Now who knew the products apple made would be so hit in the market that people are ready to spend that much money on that i-phone or i-pod. After i-pod, Steve Jobs did the classic work combining i phone and pod together to make an i phone. That’s called innovation. But during this period there were loads of competitors in the market. Now why would i buy their product , there has to be something different . And there came a company called Samsung. Well Samsung was not a new firm but with the cut throat competition in the market , they had to do something  to survive.

And they came with smartphones which were easily affordable. And that’s the key affordable. Now just raise your hands and tell me how many of you can afford a apple I phone 5 . Let me tell you honestly . I Cannot. I mean i think thats too much of a money to be spent on a phone. I know I – phone is classy and all that jazz but i got to see my pocket as well. Likewise there are many people in this world , who would give the same statement what i gave.

And my understanding is Samsung took care of this part. Now an I- phone 5 would easily cost around 50000 Indian Rupees. Now i bought the Samsung smart phone a year and half back for Rs 8500 and tell you its got both touch and qwerty keypad and the most classy look . Almost giving it a look of a blackberry curve and i am enjoying all possible functionality of a smartphone.

Now to stay in market. Samsung , Smart Camera. Now tell me guys who would have even thought about it. Isn’t it amazing . I mean that’s what i call innovation.

Click a picture share it on Facebook , or wherever you want.

Innovation is all around , all we have to do is , find it in the simplest of the simple things.

Now signing off

Shwetal An Avid writer.


By innovateinvestmentbanking Posted in Economy

Thats what i call grabbing opportunity


I have a habit of reading , and this morning i Google some investment banking news and there came a link to an article from business today. It said the rise of boutique investment banks in India. Time and again markets have gone under water , almost to the level of sinking. But why ? The why is not for why markets sunk but for why when things turned sour they did not come under control. Why the intelligent minds don’t try to turn around things and grab a opportunities.

I saw so many people loosing their jobs and are out of work. Some selling newspapers outside. Some opening their shops. Not that i am saying that they are doing bad , but there are some people who are different . Who are recognized for grabbing opportunities.  One such set of people whom i read about in business today were outstanding. Even when things turned bad for markets these innovative brains have implemented the concept which i would say big giants would think twice to implement . Just because they don’t want to make small profits. Well these small profits act like an umbrella for the rainy days. When the storm is already there you cannot have grilled fish in the kitchen, rather you got to work on the deck of the ship to save the lives of 100’s that are on board.

The concept of boutique investment bank that was implemented in India is amazing. I am not sure if it was implemented or how it was implemented in other countries.

Small line of customers (presumably anxious in...

Small line of customers (presumably anxious investors and savers) outside a branch of Northern Rock – a Mortgage specialist and a top UK mortgage lender – in North Street, Brighton, East Sussex. The business (a former “savings and loan” type Building Society which was demutualised in 1997) has been affected in part by problems in the US “subprime” lending market. Picture taken late on Friday afternoon on 14th September 2007. (Photo credit: Wikipedia)

Post the aftermath of global financial crisis around in 2008 , investors had started loosing trust on the big giants or the big investment banks. This was the opportunity for a concept to rise. That is where these boutiques scored over the big investment banks. The specialty of these boutique investment banks was that they started making profits on a smaller scale initially with a bunch of research folks and analysts. Yes profit margins were slow but as things progressed the deals were flowing in sm0othly and that is the profit margins of these boutique investment banks went high and that too in billions. And this made me realize that you want to reach billions you still have to start from 0. And hats off to these entrepreneurs who showed the courage to take the risk and turn around things for themselves.

If you ask me boutique i would say boutique investment banking no one researched but it already was inside a human brain , someone had to take the courage to implement this concept. The one who takes the courage is the one who succeeds. And that is very true from these examples set. Please refer more the business today article for more.



Limitations on Social Media …Is it right


I was reading a book the other day it talked about Socialnomics. Interesting term isnt it. I didnt finish reading the book yet but whatever i read actually engrossed me and made my thinking caps on. While readin this book i went back in time, where i was kid in a school. And this reminded me of how my day used to be. Each day i used to reach school by 09:00 and leave by 03:30 . And i had so many friends to interact and we used interact in person day in day out. And that was our social media. And this iam talking around 1994 when we were not even exposed to internet . Talking about facebook and linked in would even sound stupid at that time. But who knew that there would be a time when we would have millions of users networking on socially on web.

This book said a very interesting line. It said if facebook would have been a country it would be the third largest country in the world after China and India. So can you imagine how many people are currently active and networking on it. Socialnomics is nothing but a socio economic shift in the paradigm of people , process and business. Its all about social media how it is driving our lives and the way we do our business.

Social media is everywhere these days. Because of our hectic lifestyles where we are not able to see a friend in person we have something called as facebook . Professional networking linked in. If you are a writer then you have a writers community on web. Wanna get married go to a matrimony website. Its a information superhighway. But with great power comes great responsibiltiy . Unfortunately with this power in our hands some of us have forgotten our responsibilities and thats where we loose the control . And debates like these whether we should limit social media or not begin. It is always that a choice we make which leads to the results. Many of the cyber cirmes have happened via networking websites. Some are very brutal .

It is very important for us to realize that we have a power in our hands. We need to use the good sides of it to benefit the mankind , country , citizesn , economy . Just because we have some bad things happening because of social media doesnt mean that we should limit it completely. If we do that we are going to hit the billion dollar economy. If you want these crimes to reduce make the laws stricter. You cannot talk about reducing the crimes where limiting the social media. Even if you do that the crimes would still continue to happen. Its the stricter laws that make the difference and reduce the crime. There is not point in hitting the billion dollar economy by limiting the social media.

Social media is not restricted to facebook but it goes all the way to ad media to anyother thing you can think off. Let me ask this question to you. While you are watching a movie on star movies and suddenly we have a commercial break . How many of you actually see these commercials ? I will tell you . None of you would sincerly watch it unless its written on top of your screens that ” Back in 2 mins ” and the clock is ticking.  So that is why we have social media on web where we have advertisements.  Today you see an advertisement from e bay and you find the offer great  . what you do ? Pull out your laptop and just open the website and order . This wouldnt happen if you are watching a commercial between movies.

Today we have upcoming or rather already existing concepts like Social banking where there are firms thinking of implementing social banking . If you put limitations on social media how are these ideas going to born. Innovation will die. And this way you are actually killing jobs and birth to a great idea. We have blogs on internet , which gives birth to great writers.  Who are not only able to express themselves but share the knowledge they have . Where would this all go if you limit he social media.

So think about it .. Lets not limit the social media and hit ourselves. Rather be aware make our choices right and believe in progress.


By innovateinvestmentbanking Posted in Economy