Friday, March 20, 2009

Just pondering

Again it has been a while since the last post. I am always thinking about things while I am here in India but never seem to put them down on the blog.
I have had a few experiences recently that have made me think that really we, mankind, have gone in the wrong direction when it come to how things are done.....on the other hand it is so refreshing to hear Barack Obama actually stating this. It is by constantly hammering away that things can change.
I was recently in the offices of the DDA or the Delhi Development Authority. I was there with my father in law Dharam Vir Mallick as a witness to the handing over of the freehold of one of his properties. (DDA handing it to him !) The process was long and corrupt. There were many layers of vetting going on. These layers were to firstly check that all the paperwork was in order. Secondly these layers of people were there to assess how much bribe money can be extracted from the applicant. In this case my father in law. They unashamedly ask who the agent is who arranged the freehold as that agent has to pay the officials in the DDA. If you do not make this payment then the process of getting the freehold is long and tiresome. This payment of course being the bribe. So my poor father in law who is 72 years old was made to wait for the whole days while questions were asked and assessments made. There is a lack of seating so he could not always sit. Just when we thought the process was over I noticed someone else picking up the paperwork and taking it away. I questioned him and he then and there asked for more money before the paperwork would be sent. We explained that we had already paid but they had obviously looked at us and decided that they wanted more. We were now in a situation. I was ready to deck the guy but then I would have got arrested as there are an inordinate amount of police in this office.... no doubt they are there to protect the officials who in turn pay them a bit on the side also. The common man does not stand a chance. It is a criminal enterprise that is going on in this place. They are nothing short of a mafia. An official mafia. They had absolutely no compunction about asking this tired 72 year old who had done and paid for everything they had asked for even more money and openly said that he would not get the paperwork should he not pay the extra !!! BASTARDS. Anyone from that place reading this should realise that you are a shameful bunch of scabs on the face of humanity.
Well.......at least I have got that one out of the way:))
Back to the wankers now... oh sorry I mean bankers of course :)) And yes they are still trying it on. Even though they have now got yours and my money to help prop up their failing businesses they are still paying themselves stupid amounts of bonuses and pensions. With our bloody money ! I just find it incredible. Let me put my own very simple persective on this. I run a car making business ... for example. I have borrowed billions which I now cannot pay back. I then ask the government to give me money which they do. In the mean time I lay off lots of hard working low paid staff and then pay myself millions and then bugger off !!! That is about the sum of it. Eh Mr RBS that is about the sum of it isn't it.
Good... another one off my back.
Had a storming day on monday at the Neemrana Fort. There is a zipwire set up there. Have a look at www.flyingfox.asia will tell you more later.
Peace and Love

7 Comments:

Anonymous Anonymous said...

I thought I needed to reply to last comment on bankers. Alas, once again, the British and the US governments have managed to hoodwink people just as they did with WMD. This time, the consequences will be much worse.

The tatters their economies lie in is no accident. They not only encouraged debt-fuelled growth, but chose to ignore the warning signs when they appeared.

However, bankers have become a convenient scapegoat for them to deflect their own incompetence. They are, indeed, chuckling with glee with the media coverage bankers bonuses are receiving as if to say "it was them" and not us.

In the end, banks are just like ordinary businesses trying to maximise profit. If the government reduces the capital requirements that banks need (which is jargon for the amount of readies they need to hold), all banks would lend more money in order to make money (in fact, this is what they did).

This was not, however, the governments' biggest mistake. Their biggest mistake, and it has been continued by the Obama administration, is to "bail-out" banks, i.e. use taxpayer's money to save bankrupt companies. This is incompetence of monumental proportions as they weaken the whole capital structure in order to strengthen the weak. Capitalism is built on Darwin's theory of survival of the fittest.

The best solution would have been "managed administration" of the weak banks (jargon for bankruptcy and selling off the good bits). So, Northern Rock, Bradford and Bingley, RBS, HBOS, Citibank, AIG, Lehmans, Bear Stearns, Merrills would (and should) be no more and NOR would have executives in those banks received any cash. By involving taxpayers, the government not only plays with people's emotion but risks the economy of the whole country.

Unfortunately, we are in too deep now. "Too big to fail" is being applied to most companies now. There is nothing that can be done now, until deleveraging (jargon for debt-riddance) is complete. In my estimates, this will take upto 20 years. The incompetence has been astronomical, and the Obama administration is making things worse, much worse.

Like the Czech ex-Prime Minister said today, thanks to the USA, we're all going to hell.

12:24 PM  
Blogger Sandy said...

Hi Rick,

Thanks for your contributions. I agree with some of what you say.
What I wholeheartidly disagree with is the easy way out of blaming the government for all these ills. You and I have many times had a similar debate ( most enjoyable they have been over the years:) I believe that there should be a moralistic approach to this. If I as a fund manager realise that all the money I was in charge of has sunk I should hold my hands up apologise and get on with things. Afetr all we all make mistakes... Not then go and take a whopping bonus on a fund that has done slightly well. When I first went freelance I cocked up a couple of jobs.... I did not invoice a penny for those jobs. When I did do a good job I charged my normal rate and not and exhorbitant rate just to make up my loss ! A great example of how detached bakers and big business CEO's are is that of the CEO of GM. He went to gongress to beg for a bailout. Hundreds and hundreds of people in his company being laid off... factories closing....How did he choose to go to this congress meeting... ? He took the company private jet. INCREDIBLE !! Absolutely no sensitivity there. He was actually chastised by the senate about this. They said to him "Don't you think first class would have sufficed ?" So you see. You can blame the government all you like. BUT corporate greed is not blameless.

7:48 AM  
Blogger Sandy said...

Of course I mean Bankers and not Bakers !!

7:50 AM  
Anonymous Anonymous said...

Slightly missed my point, GM did not go to the Fed, they were offered funding by the idiots in government to keep a bankrupt company alive. GM should be no more, and therefore, no company jet for the CEO.

1:22 PM  
Blogger Sandy said...

I do not think I missed the point. Whether you want to call it funding or a bailout makes no difference. The fact that the company was in such trouble and yet they were still using the jets shows that these people had totally twisted values thinking that they could go galavanting around like that. This is right to the core of my arguement. GM did not suddenly realise that they were bankrupt they would have known for some time and yet instead of getting rid of the costs of those planes they would rather get rid of people. Sheer materialistic/corporate greed in play.... it is plain and simple !

11:05 PM  
Anonymous Rick said...

Interesting discussion Sand. However, I still feel we are debating two different things. I completely agree with you that failure should not be rewarded, and that Fred the Shred and the GM CEO should have got zero.

That is not what I'm saying. All the companies I mentioned in my first comment and GM, Chrysler etc should have filed for bankruptcy long ago. You will be aware that when this happens, all employees' (including executives) pay and benefits are stopped.

In fact, this is what GM did, however, the govt could not deal with egg on its face as there would have been mass redundancies. So they decided to bail-out the company. They decided to let the employees (and the executives) keep their pay and benefits! This is WRONG. This is not capitalism, it is communism.

Let me explain. Capitalism: If you run a successful company, you have every right to reward your employees and yourself. You would not begrudge Mittal if he indulged in a few luxuries. Executives and employees at Goldman Sachs, HSBC, John Lewis, Microsoft, Reliance etc are well treated, for retention and because of success. If you don't, talent will go elsewhere for better pay. If you run a failing company, the company is wound-up, executives and employees lose their jobs and go elsewhere (if they can). Shareholders lose all their cash.

Communism: You run a successful or a failing company. Doesn't matter as the state owns the company and will fund or wind-up the company. Employees do not have many rights. Good for employees as they don't really get "sacked". Bad for the country as people don't have too much liberty.

You may say capitalism is harsh. It is. I didn't invent the rules, but this is how it is. If you have decided to run a society in this way (as the Western govts have), you have to play by the rules.

If you want communism, then you would have to sell your material possessions and give them to the govt, who will either confiscate or distribute equally to the poor etc.

The mess that the US and UK have now created is a mixture of the two, and it will not work. Bailing-out bankrupt companies (i.e. reward for failure) was tried by Japan 15 years ago, and it still hasn't worked.

We're in this for the long run.

5:26 AM  
Anonymous simon said...

this is all very well and good, but how will this affect my Supersavers denim account, my £48.26 is gaining 19p a year with Barclays, should i move it into an ISA?

5:46 AM  

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