1.Nationalizing Toxic Asset
This solution is invariably preferred by the banks themselves.It consists of either the government (in the initial Paulson bailout plan, for example, it is the U.S. Treasury Department) or a specially created institution funded by the government buying assets from the banks that they now want to jettison.Of course, determining the price at which these assets are purchased is a very tricky issue, particularly when a liquid market for such assets has dried up completely, as is the case now. If the government buys the assets at too high a price, it will be seen as a straightforward subsidy for previous bad behavior, and accentuate the "moral hazard" problem (defined below), something that is politically unpalatable.
2.Nationalizing the Banks
The second way to buttress the banks is by governments providing capital directly to banks themselves, either by buying stocks, or by acquiring a newly issued preferred stock. For example, this is what Warren Buffet did for Goldman Sachs in September 2008 in the US: He injected $5 billion in the form of preferred stock that would give him not only 7% of the capital, but also a guaranteed 10% dividend forever.
In Europe, governments have typically taken the bank-nationalization road, although with less demanding terms than what Warren Buffet obtained. Nationalizing the banks was the option taken for instance in Sweden in 1992, and in 2008, first for Northern Rock in the UK, and then for a wide range of banks in all countries by mid-October 2008.
Friday, February 13, 2009
Thursday, February 5, 2009
Transforming the Energy
I have an opportunity to meet Swami Sri Ramji .He runs the Keshav Ashram in Ujjali,Uttarkashi .
I was deeply touched with his presence and the energy, which he radiates . We had a very wonderful interaction . I am putting this interaction, online, that you can also be a part of it.
1. Do you think transformation can happen to human beings ?
Yes it can . The approach essentially has to be from Body . You see the humans, when they are young , had a natural state of concentration . But, when they matures these concentration evades . It might stay for some selected . But, in general people losses the ability to concentrate . This lack of concentration often results to different form of disease . One can approach to these disease, with different Yogas I teach , where we help people to concentrate, and cure from the set of diseases they faces.
2. Normally, we see the child is not concentrated at all . They seem to us very fickle minded . But you say that the child and the young people are very concentrated ?
The child is concentrated , but not in a manner the society wants him to be.
3. What is the difference between societies perception of concentration, and the natural concentration you talk about ?
The natural concentration is there, with every human being, when he was child . But, when he grows up, then the society perception of concentration, is projected in the mind of child . He looses his own natural concentration, and starts moving in the direction of the society . Society starts regulating his life , and the inner joy of living is lost . However , he always seeks for this natural concentration, through out his life , through accomplishment , expecting that the inner joy which he had, will come back to him .
This search for joy , continues throughout the life time , and the majority, does not find that state of consciousness again . For example, a forest seems to be disorganized, and not in the levels of human utility from outside . The garden, can look to him very organized . However , the fact remains that any garden is an artificial forest, made by human effort, which satisfies the needs of beauty around human habitat. The forest has his own natural beauty , which obviously cannot be remade by the artificial beauty of garden . Same way , child has a natural concentration which cannot be remade.
Yoga helps a person to connect with the natural concentration, which he had been gifted , when he was child . It is like , getting back to the state of child in you .
Why do we loose the natural concentration ?
We are gifted, with certain state of natural concentration. We loose it because deluded by the projection of the society . Still, an understanding deep down, remains, what the natural state of concentration is . So we keep searching , on different people , different things, this natural state of concentration . However we don't find it . When we comparatively access our state of natural concentration , with others we find ourselves less fortunate, and loose appreciation of it. That’s one reason we start loosing it . Because we think the others have it , and we don't have .
What are the education models you provide to get the natural concentration ?
There are some Meditation ,Asanas and Pranayama , I teach for transformation of energy.
Krishna –I – Pranayam with Meditation and 11 Asana
Krishna II – 25 Asanas ( Sitting)
Krishna III – 15 Asanas
Krishna IV – 12 Asanas
Krishna V – 25 Asanas (Standing)
One can come in my ashram in Uttarkashi ( email –swamishriramji@gmail.com ) to learn this set of asanas and Pranayams .
Sometimes I also conduct different training camp around India . So one can join there also to learn ,how to transform energy by bringing back the natural concentration thru Yoga.
Monday, February 2, 2009
Transformational Paintings
“What is an well organized World State ? “ . After hearing such a revealing music with one disciple of Pandit Ravishankar I was wandering , that it should be the ability to flow with things . While listening the sitar , I was completely into the process of hearing .For sometime, all the concerns and, thoughts and other afflictions were gone.
In the morning, I was talking about this flow with ‘Ongkie Tan’ and Indonesia born artist, and his insights where very revealing.
He has spend a long time in US, .At the same time , he has done his solo and group exhibitions, with different group of peoples and places around the world .
“An well organized state is a mental state, and it has nothing to do with the physical condition . I draw pictures of different shapes and types of my own spiritual experiences and lot of people come to ask me , why have you drawn this . I say , I don’t understand , I don’t know, I don't have to know ? .” –Ongkie says me .
I said , “sounds interesting”. He continues . “ I have seen a lot of people who doesn’t meditate ,however they remain in a deep spiritual state . Art is a form of meditation , I don’t draw just because , I think , I should draw. I draw because I love it, and it transforms me giving, new experience of life and living .Painting is a part of my being , I can’t live without it.”
Wednesday, January 28, 2009
Rebuilding India's Economic Excellence - My New article in CEO Insight
Recently , I wrote my insights on SME's role in Nation building.CEO Insight ,a web journal published it in there CEO Talk Column in Indian 60th Republic Day. In the wake of Global financial crisis , when large Indian corporates , are failing to sustain there performance,
it is important to re-instate the major role of SME's and startup entrepreneurs, on rebuilding our economic excellence.
http://theceoinsights.com/joomla/index.php?option=com_content&view=article&id=129&Itemid=132
Thursday, January 22, 2009
The Comming Age of Subjective Finance
To start with, we have three primary function of financial management – Investment decision , financial decision , and dividend decision . In the case of Investment decision, one has to decide on a capital investment proposal, whose net present value (NPV) is positive, and rate of return should exceed the marginal cost of capital. In the case of capital rationing, where the available capital is low , the investment proposal are selected, on the base of maximization of net present value. Further, those business plans, should be selected, as an individual project which should lead to an overall profitability of firm, enabling creation of wealth . Now, there are question on it ? The whole thing is dependent on human faculty of making decisions, by objectively looking at the facts, and analyzing the pattern. Obviously the question is of using the intellect, and creating right perception. However, often when an entrepreneur, develops a business plan, and moves to an investor, for making an investment decision, sometimes inside and sometimes outside the organization, he projects his thoughts on the entire planning process. The strength of his thought formation, can actually lead to an new form of reality . It could even change the perception of investor, and also influence the investment decision. This reflexive methodology, how individual with their thought projection , changes the reality is something could come in the domain of subjective finance . As, most decisions in real life both on the terms of capital investment proposal ( Investment decision ), and Capital allocation Proposal ( Financing decision on debt and equity ), and later Distribution of funds ( Dividend decision ), depends mostly on how an individual investor, or a collective investor, perceives the situation or potentiality of the proposal .
The reality of the fund allocation based on principles of financing management, of putting the funds in a situation , where the owners wealth, would be maximized, is a myth . As nobody knows, where and which forms of fund investment, allocation and distribution will maximize the wealth. They can predict, and the prediction will depend on the collective perception of the market, at that point of time . This collective perception of the capital investment proposal, is not always the reality of the capital investment proposal. It is how, the reality is perceived by certain group of people. For instance , the financial principle ,says that the liquidity available in the fund allocated in organization ,is reciprocal to the profitability of that fund at that point of time, in that organization . This do means that the fund, which is invested for a long period of time, has better changes of profitability. That’s how housing finance was seen as a most profitable area, as the funds are allocate for long term, and the available liquidity was low. But now with the housing prices depreciating , and the subprime crisis still there ,people are even questioning, about the reciprocal relation on liquidity, and profitability .
The root of any financial management is acquisition, ,maintenance and growth of the fund . There are process defined, for this objective, and one of the most significant process is to make right decision . Now, that is equally very subjective and depends on the psychological and the environmental condition, an individual is facing which will build his perception . Infact ,how he is comprehending his perception is also important . If he is seeing, around him, an widespread greed for wealth maximization, his comprehension, will be more reluctant to go the other way around . The agency theory points out, that managers are agents to shareholders, whom the shareholders give there power to make decision. So the power of decision making his very well distributed around the organization, at least in terms of theory. Though professional managers are expected, to move from higher interest , generally they are guided by self interest . Looking things from pragmatic point of view , if you have agents in the top of the financial institution , who is organizing the financial fate of people around number of nation ( given the fact that all these financial institution are present in number of nations), whose perception are deluded by self interest and greed , what kind of financial decision do you expect ? Don’t you think on such conditions a global financial crisis of this scale is a natural extension of a human psychological defect ?
Is it not the time, when we start talking about ‘subjective finance’ – which seems to be a very important of Ancient Indian Financial Schools of thought – based on Atharva Veda?
The subjective finance would be very different from behavioral where the characters of the financial decision maker could behave in according to certain policies ,but inwardly would sustain that ‘self interest and greed ‘. Behavioral finance could significant short term effects but not long term ‘character overhauling’ which the subjective finance could help . As it bring the real character of funds in front of humanity.
The reality of the fund allocation based on principles of financing management, of putting the funds in a situation , where the owners wealth, would be maximized, is a myth . As nobody knows, where and which forms of fund investment, allocation and distribution will maximize the wealth. They can predict, and the prediction will depend on the collective perception of the market, at that point of time . This collective perception of the capital investment proposal, is not always the reality of the capital investment proposal. It is how, the reality is perceived by certain group of people. For instance , the financial principle ,says that the liquidity available in the fund allocated in organization ,is reciprocal to the profitability of that fund at that point of time, in that organization . This do means that the fund, which is invested for a long period of time, has better changes of profitability. That’s how housing finance was seen as a most profitable area, as the funds are allocate for long term, and the available liquidity was low. But now with the housing prices depreciating , and the subprime crisis still there ,people are even questioning, about the reciprocal relation on liquidity, and profitability .
The root of any financial management is acquisition, ,maintenance and growth of the fund . There are process defined, for this objective, and one of the most significant process is to make right decision . Now, that is equally very subjective and depends on the psychological and the environmental condition, an individual is facing which will build his perception . Infact ,how he is comprehending his perception is also important . If he is seeing, around him, an widespread greed for wealth maximization, his comprehension, will be more reluctant to go the other way around . The agency theory points out, that managers are agents to shareholders, whom the shareholders give there power to make decision. So the power of decision making his very well distributed around the organization, at least in terms of theory. Though professional managers are expected, to move from higher interest , generally they are guided by self interest . Looking things from pragmatic point of view , if you have agents in the top of the financial institution , who is organizing the financial fate of people around number of nation ( given the fact that all these financial institution are present in number of nations), whose perception are deluded by self interest and greed , what kind of financial decision do you expect ? Don’t you think on such conditions a global financial crisis of this scale is a natural extension of a human psychological defect ?
Is it not the time, when we start talking about ‘subjective finance’ – which seems to be a very important of Ancient Indian Financial Schools of thought – based on Atharva Veda?
The subjective finance would be very different from behavioral where the characters of the financial decision maker could behave in according to certain policies ,but inwardly would sustain that ‘self interest and greed ‘. Behavioral finance could significant short term effects but not long term ‘character overhauling’ which the subjective finance could help . As it bring the real character of funds in front of humanity.
Wednesday, January 21, 2009
Finance - From Ancient to Modern
The root of business finance is the Government policy, which again is very much compliant with the viewpoint of ancient financial wisdom. However, there is a essential difference here , in comparision to modern financial progress and complexity of environment , the financer will take a role of facilitator rather than controller .The globalization and liberalization has merged the national economy with global economy . This brings eventually a tough situation, as Nation worked with boundaries, and there specifics to exercise control . However, when we talk about a vaster geography, across nations , we don’t have institution which could exercise this control. The ancient financial wisdom talks about acquisition and maintenance of Mother earth . Modern financial management talks about acquisition , maintenance and creating growth for the business . There is a fundamental difference here , whereis ancient financial wisdom is talking about acquisition and maintenance, it is talking from the viewpoint of welfare of the subjects and satisfying them. On Contrary, financial management is talking from the viewpoint of acquisition and maintenance and growth of a small group of people which is known as shareholders . The subjects of ancient financial wisdom are broader and involves a country and its inhabitant.
The problems we face now, in the economic context are
1) National economy and world economy has got fused with globalization and liberalization.
2) Business are subjected to multiple regulatory framework which in itself is diversified and not integrated.
3) The Government policies are still rooted on national boundaries whereas business has to most deal with something beyond national boundaries.
In a whole, the modern financial management does give a idea about acquisition of funds and growth of them as a primary objective, and makes the statement that it could be done with facilitation – which means delegation of the control to different people.
The delegation if it has to be done ,it has to be done to right kind of power, who have proper sense control, and who don’t fall in the circle of greed . The basic objective of the financial managers, is to make the benefit of the shareholders, and grow and make profit for the fund which has been procured . This brings a very big question about the responsibility of the shareholder and the financial manager . What is there responsibility ? Is it just to grow in material world and make profit ? What is the cost of that profit ? How that profit could be balanced with the social and environmental agenda . How those people could be created who could have right spiritual values to handle the funds which are delegated to them and the authority given to them to manage the funds .
It seems that the basic function of Modern financial management, is more related to a small entity, rather than a larger entity call Mother Earth.However the viewpoint of ancient financial wisdom is based on Mother Earth, which makes it more appropriate on the terms of understanding and practice.
The problems we face now, in the economic context are
1) National economy and world economy has got fused with globalization and liberalization.
2) Business are subjected to multiple regulatory framework which in itself is diversified and not integrated.
3) The Government policies are still rooted on national boundaries whereas business has to most deal with something beyond national boundaries.
In a whole, the modern financial management does give a idea about acquisition of funds and growth of them as a primary objective, and makes the statement that it could be done with facilitation – which means delegation of the control to different people.
The delegation if it has to be done ,it has to be done to right kind of power, who have proper sense control, and who don’t fall in the circle of greed . The basic objective of the financial managers, is to make the benefit of the shareholders, and grow and make profit for the fund which has been procured . This brings a very big question about the responsibility of the shareholder and the financial manager . What is there responsibility ? Is it just to grow in material world and make profit ? What is the cost of that profit ? How that profit could be balanced with the social and environmental agenda . How those people could be created who could have right spiritual values to handle the funds which are delegated to them and the authority given to them to manage the funds .
It seems that the basic function of Modern financial management, is more related to a small entity, rather than a larger entity call Mother Earth.However the viewpoint of ancient financial wisdom is based on Mother Earth, which makes it more appropriate on the terms of understanding and practice.
Sunday, December 21, 2008
Could we lead towards global transformation by introducing World Goverment ?
Global Governance leading to global transformation is seen as a possibility now. Though, I think, it is a requirement now .It might be a possibility, from indifferent consciousness viewpoint.However, from that viewpoint everything is a possibility?
Going ahead, in the same thought wave , third world war also looks like a possibility. The kind of financial catastrophe we are seeing in 2008, happened earlier in 1930. These was known as great depression.That, point of time, we had already the league of Nations, which is certain form of early stage human unity ( though US didn’t participated in it) . But to get to a consciousness, which can support even a inferior form of human unity, called as UN, the world has to cross, the Second World War (1937 – 1941) killing 70 million people . Only then some of the nations understood the importance of creating new financial order, after the conclusion of World War II in 1944 at Bretton Wood . It took 14 years from Great Depression at 1930 , loss of 70 million people, and loss of few trillion wealth, to reach a human unity as inferior as UN ,which the global leaders are now feeling inadequate to solve global crises we are facing right now.
Does it mean to create Global governance now , we should follow the same pattern from the Great Depression to World War II, and then only be able to create a new social and financial order which has happened earlier with Bretton Wood ?
And then this will continue again, that, after some time that form of human unity will be also invalid, and we have to create a new form of Human Unity to address global problems, we would be facing at that point ?
Do we need to loose another 70 million people and waste a wealth of another few trillions to create every time a new form of human Unity ?
What is use of knowledge and knowingness and building consciousness, if we can’t change certain global thought patterns which will make the globe face the same situation again and again.
From this viewpoint the World Government should not be only seen as a theoretical possibility , but we should act towards it ,that it becomes a practicle reality.
Going ahead, in the same thought wave , third world war also looks like a possibility. The kind of financial catastrophe we are seeing in 2008, happened earlier in 1930. These was known as great depression.That, point of time, we had already the league of Nations, which is certain form of early stage human unity ( though US didn’t participated in it) . But to get to a consciousness, which can support even a inferior form of human unity, called as UN, the world has to cross, the Second World War (1937 – 1941) killing 70 million people . Only then some of the nations understood the importance of creating new financial order, after the conclusion of World War II in 1944 at Bretton Wood . It took 14 years from Great Depression at 1930 , loss of 70 million people, and loss of few trillion wealth, to reach a human unity as inferior as UN ,which the global leaders are now feeling inadequate to solve global crises we are facing right now.
Does it mean to create Global governance now , we should follow the same pattern from the Great Depression to World War II, and then only be able to create a new social and financial order which has happened earlier with Bretton Wood ?
And then this will continue again, that, after some time that form of human unity will be also invalid, and we have to create a new form of Human Unity to address global problems, we would be facing at that point ?
Do we need to loose another 70 million people and waste a wealth of another few trillions to create every time a new form of human Unity ?
What is use of knowledge and knowingness and building consciousness, if we can’t change certain global thought patterns which will make the globe face the same situation again and again.
From this viewpoint the World Government should not be only seen as a theoretical possibility , but we should act towards it ,that it becomes a practicle reality.
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