Analysis of Indian news dated 04-Jul-2012

In India, bad loans of banks (mostly state-owned) is growing at 44%, while the loans are growing at 16.3%. This means that % of bad loans is rising much faster.
More and more companies are asking banks (mostly state-owned) to restructure their loans. This is called CDR (corporate Debt Restructuring)

Why are private banks not having enough CDR? Because it is difficult to fool a private bank. State-owned bank bureaucrats can easily be bribed for a CDR. This causes losses to tax-payer, but corporates benefit.

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Akhilesh uses to travel on a bicycle at the time of elections to request that people vote for SP. Now, that he is chief minister, he wants to use tax payer funds for a car worth up to 20 lakhs for each MLA and MLC in UP. The official purpose is to development. I say, maximum development will occur if India reduces taxes and expenses.

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Air India’s losses increase. Private airlines (at least few of them) have rising profits. All State-owned airlines have losses.

I say, privatize airlines. These are cash cows for politicians to steal tax-payer money.

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Buy physical gold and silver to protect yourself. If you cannot touch it, you don’t own it. Exit all paper investments including ETFs, stocks, PF, PPF, NSC, etc.

Disclaimer