In December of 1930 Bank of United States (BOUS), based primarily in the city of New York failed. It was the first bank failure in New York during the great depression which started in Oct 1929. The main reason for the failure of the bank was that although ostensibly the bank had sufficient equity capital, in reality, […]
Prologue This blog tried to unveil the mystery of central bank independence and need for fiscal-monetary cooperation in India. Most of the thoughts in this blog are based on Mr. Ben Bernanke’s speech in Tokyo in May 2003. The latest GDP growth in India is 5.00%, way below the double-digit growth that is theoretically possible given very […]
Meaning and Operation of Networth Networth is required for any fictitious commercial entity to ensure that its operations are not hampered by expected variation in the business variables. An industrial or commercial entity, when it builds it networth, increases its bank balances held with a commercial bank. It may then spend that increase in networth in an […]
In recent months there has been a spate of news of stress in Indian businesses, both financial and non-financial businesses. Commentators are assigning various causes for the same. However, in our view, the main cause of this stress is the unbearable burden of astronomically high real interest rates charged by the Indian banking industry, especially private sector […]
On 6th July 2019 I delivered speech at convocation of my school, Shiv Samarth Vidyalaya, Thane, India. Here is the text of speech in Marathi. विद्यार्थि मित्रांनो, जय हिंद! आज मी आपल्याशी काही हितगुज करणार आहे, किंबहुना माझे स्वतःचे काहीस स्वगत, काहीस मनोगत व्यक्त करणार आहे. मनात अशी आशा आहे कि कदाचित मी तुमच्या मनातील काही […]
Recently, in the month of May 2019, India has been in the news for conducting the largest democratic election in the world in which more than 600 million votes were cast. The Indian people reposed faith in the leadership of outgoing prime minister, Mr. Narendra Modi, giving him an even bigger mandate than what he got in […]
In this blog, I attempt to read the mind of MPC (Monetary Policy Committee) of RBI to guess if the assessment of RBI regarding required real rate of return has changed to keep the Indian financial system stable. The table below gives, for last six financial years starting on 1st April of respective years, what was the […]
Recently I read Yuval Noah Harari’s recent blockbuster “21 Lessons for the 21st Century” (21L21C henceforth) in the hardbound format. I had consumed other blockbusters of the same author in audiobook format while being driven around. One drawback of consuming books in audiobook format is it is difficult to go back and re-connect various sections of book […]
The Hypothesis Ever since I first read about Shannon’s Entropy twenty years ago, I believed that in all likelihood human brain is Entropic-Bayesian-Electrochemical device. Now, in last four years neurobiological evidence is emerging for initial confirmation of Entropic brain hypothesis1. Human brain, like any other living thing, is a play on the entropy-energy cost curve. The objective […]
Recently, The Economist, a newspaper carried an article on the impact of Mr. Masayoshi Son’s Vision Fund1. In my opinion the analysis contained in the newspaper was far too inadequate in defining the context and also imagining the impact on the society of such a unique experiment. In this slightly longish blog by my standards, I will […]