Scams, Stock market and a cup of 'Sudh' darjeeling tea!
After a hot cup of 'sudh' darjeeling tea, I looked at the paper, rather papers (as I read TOI and ET both). Nothing unusual; the scams, sedation charges against Geelani and Arundhity Roy and again the scams. I wondered at the multiplicity of scams appearing every now and then, few of them in the range of more than a lac crore! I doubt those involved in the scams will be able to use all the money in their lifetime. Probably they are securing the life of their future genaration. Now that's what u call vision with a difference!
Where does the money come from or where does it go either? Difficult to say, my dear Watson!, Holmes would have pondered. However, a smoky idea can be made for sure. Let us dissect 'scam'. Money flowing in wrong hand at the expense of others in a sophisticated way becomes a scam. However, a series of events like these become scam only when it is known. So, we can deduce that many of the scams are still to be unearthed (in india, most of them, I am sure). Now, I am not going to the nitty gritties of scam as that will made my 'sudh' darjeeling tea insipid! Let's talk about the money. Now, we are interested enough!! Do we think they are in india? Naah.. they are parked elsewhere. One of the Swiss bank directors have metioned recently that Indian have money somewhere in the range of 280 lac crore! That is HUGE!
Being a finance person I sometimes try to put the effect of almost any damn event on stock market, bad habit I realized later. But scams? Do they have a bearing on our economy? Those are tax-payers money going out of the country. So, we are losing out, right? Think differently. Most of these money are into tax havens including Mauritus and Cayman Islands, parked safe and secure. Now link it to the amount of inflows we are getting form these countries, mostly in the form of Foreign Institutional Investor (FII). If we see the stock market is influenced heavily by FIIs; and stock market, for a layman, is the barometer of an economy, do we get the whoel picture now?
Money is moving out to tax havens and we have heavy inflows of FII's as NRI deposits every year on stock market making it look healthier than ever before. Then we say, Indian economy is shining and stuffs! Aren't we getting our own money back in the form of FII?
So, what does it percolate to? More the scams, healthier the stock market! It sounds bizzaire but true! This means stock market has decoupled itself with Indian economy and is 'NOT' a barometer of the economy any more! Think about it dear friends.
Ohh.. I neeed another cup of 'SUDH' darjeeling tea.
"Ogo suncho.. amake aar ek cup cha diye jabe plz.."
Where does the money come from or where does it go either? Difficult to say, my dear Watson!, Holmes would have pondered. However, a smoky idea can be made for sure. Let us dissect 'scam'. Money flowing in wrong hand at the expense of others in a sophisticated way becomes a scam. However, a series of events like these become scam only when it is known. So, we can deduce that many of the scams are still to be unearthed (in india, most of them, I am sure). Now, I am not going to the nitty gritties of scam as that will made my 'sudh' darjeeling tea insipid! Let's talk about the money. Now, we are interested enough!! Do we think they are in india? Naah.. they are parked elsewhere. One of the Swiss bank directors have metioned recently that Indian have money somewhere in the range of 280 lac crore! That is HUGE!
Being a finance person I sometimes try to put the effect of almost any damn event on stock market, bad habit I realized later. But scams? Do they have a bearing on our economy? Those are tax-payers money going out of the country. So, we are losing out, right? Think differently. Most of these money are into tax havens including Mauritus and Cayman Islands, parked safe and secure. Now link it to the amount of inflows we are getting form these countries, mostly in the form of Foreign Institutional Investor (FII). If we see the stock market is influenced heavily by FIIs; and stock market, for a layman, is the barometer of an economy, do we get the whoel picture now?
Money is moving out to tax havens and we have heavy inflows of FII's as NRI deposits every year on stock market making it look healthier than ever before. Then we say, Indian economy is shining and stuffs! Aren't we getting our own money back in the form of FII?
So, what does it percolate to? More the scams, healthier the stock market! It sounds bizzaire but true! This means stock market has decoupled itself with Indian economy and is 'NOT' a barometer of the economy any more! Think about it dear friends.
Ohh.. I neeed another cup of 'SUDH' darjeeling tea.
"Ogo suncho.. amake aar ek cup cha diye jabe plz.."
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