Economics part 3

Finance Information

jagadish



Bonds are they essential

Bonds are essential to an investor for getting fixed income for himself . beyond a certain point of time bonds become a liability to organization as recurring expenditure. hence it is advised to be kept minimum and fixed number of years for it to sustain

bonds are used or should be used by companies only if they are out of cash or don't possess working capital to solve their immediate cash problem. solution is 1 to 2 % of authorised capital should be sufficient .

why 1 to 2 % it is because too much of interest payment makes company a huge debtor. convertible bonds are also essential to certain extent and is better preferred by me as it can sustain the loyal investors to continue with the company

as per my judgement is concerned convertible bonds period shouldn't exceed more than 3 to 5 years and within 3 to 5 years should be converted to shares. even that is debatable to release it as their is a scope of crash down of stock market if too excess convertible bonds are released without knowing the scope of jurisdiction of number of shares being in the market

knowing how many shares are their gives a scope to the company an idea to release the subscribed capital into the market . excess subscribed capital into market can lead to market capitalization crash . changing hands and too excess transfer of shares from bulls to bears. stags can actually work more during the times of convertible bonds by selling away shares during the process of conversion (speculative business ------- stags)

hence jagadish advises that bonds are better than convertible bonds because stags don't come into picture. stags usually do daily sales and purchase making stock market volatile . giving a limit of sales per person can control stags otherwise market capitalization fluctuations can bring down the share price drastically if not checked.

bonds interest rates are paid quarterly, yearly. which one is safe bet : payment of interest rate monthly is always feasible because it gives scope to the organization to know who their loyal customers are and what the demand for the sale is.bonds actual replacement is annuities but annuities is lifelong whereas bond interest payment is short life


investors are usually asked by jagadish to go to mutual funds in indian scenraio in form of either hedging or balanced funds where their is shift between bonds and shares coexistence in case of economy turmoil.

mutual funds usually taken care where public is in abundance and risk management is spreaded within investors and guaranteed safety is attached based upon the risk management taken up by investor within mutual fund.


Thought for the day : types of bonds and its drawbacks

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How can loans be got back intelligently from debtors of money in short span of time


normally every bank hands over loans to those who need it and is always has to write off loans in abundance. During the phase of recession loans default is much more widespread than normal. at this stage what can banks do to get back money lent to pay to savings employees of same bank

1) give debtor a job
2) ask him how can he contribute to society through his knowledge and groom up others
3) how can the candidate be a role model to other debtors in getting back money

thought for the day :

i cant think beyond the three , best wishes for anyone to think out of box and help me out


NEXT

stock hedging :

hedging is considered to be safest passage for any type of instrument for the investor where it guarantees you about loss and provides a cushion for not fall down of price beyond a certain minimum limit . this is usually seen in mutual funds in INDIA and is followed with a huge hit

suppose the same hedging is kept in stocks what happens ?

stock hedging can be defined as group of shares in a particular industry segment coming together to sell stock under a huge compilation of shares of different companies in a particular industry segment to get cushion for share price of company not fall down below a certain range

stock exchange transactions are usually controlled and transfer of shares is stopped after a period of transactions where exchange sees a danger beyond a certain crash down of stocks in a particular industry if further transactions take place

this particular event can be stopped for coming to crash down limit by keeping a hedging facility in stocks for particular industry .

think is it true what i said ?

suppose this is done all the investors would sell away shares and create a huge amount of sales leading to once again crash down . hence stock hedging should never take place otherwise it leads to stag situation where below the limit of fall stock is sold off .

only bear market would be interested but bear market area of job is limited in stock exchange market. it is usually bull market which actually does more profit and sales

stock exchange other area is bond hedging . what happens here is bonds can never have an hedging facility as it is time bound by nature . at the most it would get converted to shares under convertible bonds or else it would end once the tenure for the payment is over

thought for the day is : Do shares and bonds if have hedging , which format would you agree

(mutual funds is one i thought)

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how to educate children whose parents are in poverty and cannot have more than 50 RS per day

normally parents want their children to be better educated and have better lifestyle than them but alas it is not possible because they can earn maximum 50 rs per day after toiling hard for the entire day. daily wages is the order in INDIAN scenario since decades .

what can jagadish suggest to the problem , lets see

education costs money so how can education be free for poor is the question

sponsorship can be given by wealthy people but it is not permanent cure because even wealthy guy looks for fast results to get mental satisfaction for himself and prove that he brought about result oriented script to the poor and brag about it as quickly as possible

people look out for UNITED NATIONS for free education and hunger removal . can they sustain. they can but area of jurisdiction cannot satisfy entire geography map of earth. managing funds by UNITED NATIONS even though is huge still cannot be managed holistically and many of areas both demographic and geographic is left out

how to give them road map of education .

western nations that's why look out for technological breakthroughs to solve most of humanity problems but they forget that technology is costly affair


i thought of a brilliant problem solution ,

theatres 5 in 1 where you organise 3D books reading on mass scale and movies which are both educational and time pass on cooperation

meaning group psychology reading and explanations by constructing 5000 mass seating capacity and ask them to read books together by projecting it to the output of theatre screen monitor

which according to me is both cost effective and all have same knowledge to share and read (3D books reading online or hard disk projection (group) )

one theatre catering to whole geographic area promoted as usual by UNITED NATIONS direction and guidance, special timings of sharing knowledge and recreation for all the audience situated in the same geographical location


5000 batch strength-------- 5 in 1 theatre (multi purpose ) --------- with timings schedule------ UN

THOUGHT FOR THE DAY

For constructing this type of 5 in 1 theatre what is the cost and cooperation strength to be judged to see success in this innovative adventure -------- Segmentation targeting positioning to start off with is Africa, INDIA, china etc

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Recession and how to come out through ---------- creation of websites

money with companies is few during the time of recession and post recession also money cant be spent as quickly as possible. i was going through apple i tunes where very honestly china employee gave very good advise that America should increase his expenditure specially in Research side.

i came with idea that if research side does given information western nations would automatically go into creation of websites. for faster result to be earned . it is advised that a thorough research into top websites to be found out and through it contract based salary to be given to those who like to contribute to these websites.


it is so because when in crisis people do associate or should associate with top websites for guidance. if this guidance isn't available to public from these websites promotional campaign of knowledge doesn't happen as quickly as possible and would take decades for knowledge to spread.

the faster way is facilitation of public into top websites instead of creating new websites

how to spread the message.

by creating awareness once again in the popular websites.

thought for the day :

what is the limit to spread the popular websites ----- is it content based or not---- how much should it be

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Technological /Management breakthroughs and what is required to do it speedily


to do this type of job a person or candidate else student must require

a) theoretical knowledge about areas to be covered up
b) span of knowledge and repercussions of implementation
c) simultaneous experimentation's while learning
d) unlearning curve speed
e) Reading extensively
etc etc,

thought for the day :

this type of outlook is common for all research based output whether you take up technology or management out of box outlook.

AM I CORRECT IN MY OPINION

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when to export and when to import goods by nation

normally import of goods is done by country if raw materials available to goods to the nation is costlier than importing them from foreign country. goods are imported when raw materials available to nation is rare

export of goods has to be done in areas where business growth to the nation is revolutionary and has the capability to give double the GDP growth rate to the nation

what happens if the GDP is close to double digit growth say 8% or 7% and nation thinks about export . it can be done if raw materials with finished goods product is able to cater to the nations requirement .

raw materials are sufficient to cater to the nation for at least a minimum century without making out a dependent nation but an independent nation when it does business with foreign nations

INDEPENDENCE IS THE CATCH WORD

thought for the day :

what is the strength of the nation as per giving double digit GDP growth individual industrial wise is concerned in export import outlook

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Technology and advancement of it

it is usually seen that in western nations because of either less population or fast innovations at rocket speed happening advancement of technology happens so fast that citizens of the country do not relish the staying power of technology

what are the repercussions of technology not staying long in the country and country keeps on increasing the advancement

take for example Microsoft over the period i am observing that it kept on advancing its technology in combination with Intel and at last a work which should take a half century to century has been completed so fast within 20 to 25 years that public like me haven't relished any of the operating system as it should do

by keeping it secure and long lasting research based output on one operating system would have germinated some more issues on a singular based OS . by changing OS frequently i think the whole of the mankind hasn't relished the OS as it should be

thought for the day :

Does fast technology hinder the relishment of satisfaction of creation or not

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Spread of technology across nations

it is seen in 21st century that web 2.0 , 3.0, 4.0 has taken place rapidly across the globe . western nations are also seen particularly interested in spreading this web across the globe to earn revenue for them and spread good things across the nations

but it is also to be noted as was stated above that spreading this type of technology is dangerous across the globe quickly without knowing consumer behavior of nations

the point is consumer behavior of nation is as important as knowing technology and able to cope with pressure of technology spreading specially if you look at nation like INDIA which actually has to cope with huge amount of rural people who are slow to adapt to technology

making a spread of technology say 4.0 to this country may prove disastrous as to cope with handling this type of technological growth which is happening fast in western nations

slowing down and relishment of technology once again said by me is crucial than fast paced technological life which proves disastrous say of not knowing the repercussions of implementations

thought for the day :

what type of consumer behavior type of research in needed in each nation to look at growth of Internet

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Transfer of funds from bank to banks

i was debating with myself today since hours as to how come i do more destructive work than constructive work. quite amazing

am i acting like a destroyer of works or constructor of literature. people do ask these questions. and as usual i asked this question to myself. over period of time of pondering , i started thinking about banks .

what are banks for ?

and what is inflation doing to these banks?

what is written off and who is benefited with loss and profit

arising to these banks even though they do similar business every quarterly and financial year pray to gods that i should do profit business and not go into losses as happened in the previous quarterly or yearly year

so coming back to question above

what is happening to money in society ?

answer is it is distributed away from one person to multiple persons in form of loans sanctioning to an individual and then from individual to creditors and him becoming debtor

it can also be stated that with transfer of funds to a person called as debtor to creditor actually is transferring money from one bank to another bank . the person who took the loan is acting like a mediator in transferring money from one bank to another bank

making one bank a trnsferer of funds and the other receiver of funds

so actually the money is their but in multiple accounts in different banks but is in circulation in the society and the trick is

RBI actually is increasing the flow of money by minting more money into the society by providing financial aid to banks which are into losses if i am correct

actually as per my commonsense and you as readers judge by yourself

the thing to be noted here is finance money need not be minted by RBI at any given point of time. what actually happening here is in a given financial year of march to April , one bank is gaining profit the other is going into losses and it keeps changing every year

what the point here is that

if bank any bank say SBI is gone into more withdrawal from public it does losses which can be in the form of bad debts and the other bank say Punjab national bank does more deposits it gains huge profit during financial year

this deposit actually is loan taken up from SBI and transferred to Punjab national bank the mediator being account holder of Punjab national bank taken loan from SBI and bad debts arise in the hands of SBI which was created by account holder of Punjab national bank

now question arises where did the money actually evaporated from the account of SBI, the account holder of Punjab national bank actually distributed to creditors

these creditors deposited the money in other banks say Syndicate bank , canara bank etc. so actually in society

one bank is a loser , the other bank is a gainer and RBI is manufacturer of additional money into society giver

increasing inflation in the society where money is in different banks with different account holders acting as debtors and creditors for each other

thought for the day :

Are Debtors and Creditors actually banks or individuals

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Online account of transfer of funds if money in circulation is huge with the society

suppose for instance RBI finds out as it should that money in circulation with the public is huge and inflation has skyrocketed with demand for products aren't matching supply of products and the products are scarce in that geographical country

what should the country do ?

companies actually possess huge amount of profit motive by working on Internet and create a huge fictitious amount and tussle out with banks . RBI by introducing corporate account mutual fund (mutual fund which is famous in INDIA ) can garner and store up in its account through transfer of online account by introducing financial instrument to them

which financial instrument would be suitable when mass employees are huge ?

by introducing corporate mutual funds with annuities combination RBI can venture where payment mode is later on after 20 years and they get the aid of mutual funds which is a known entity in INDIAN scenario

this 20 years later of corporate annuity acts like a pension and if possible employer also pays part of the amount into the employees account based upon the scheme designed by the financial companies are concerned

how can these two be mixed up

by introducing amount transfer online with small monthly payments in the form of annuities giving them social security sector wise (B2B)

thought for the day

which type of financial instrument can be created to balance shares and bonds market other than annuities type of instrument

END

so friends this is the end of my literature , hope it was informative and given you my knowledge which i knew to be true as per my best knowledge. if their are any mistakes please do pardon me

thanks to my followers and hope good days begin where i wanted to end on siddi vinayak chaturthi

thanks for your patience to read my works

ending permanently

jagadish

Economics part 2

ECONOMICS PART 2
JAGADISH

When capital with company is less and allocation of funds to be made is huge ?

How can companies do allocation in such times

A) Prioritize first funds under B2B segment as this allocation gives you edge
over others specially in production department division ---- thought process
is B2B leads to B2C sales

B) Employees to be given ESOP stock options during this time to be liquidated
later on by the employees when they need in stock market ( if possible spread
it to stakeholders)

C) Internet sales becomes mandatory and advertisement money through this gives
you working capital

D) Setting up publishing division through internet gives you edge over others
(knowledge capitalism)

E) Complementors tie up gives you alternative opportunities to look at business
growth

F) Cooperation and sharing knowledge is also one way of contribution either
during good times or bad times---- having networking people in and around you
is a good habit

Thought for the day :

How many can you think in addition to above said on the issue pertaining to funds allocation either to generate or manage capital in your company or industry

NEXT

What to write today so thinking about what if I enroll myself into Microsoft hr. suddenly just now got an idea why not thinks about community development issue so here is the wonderful proposal


Community based service to make star performer of the company a household name (HR)

Every company has few star performers under their wing.
how to groom them up and make them popular in the society and create awareness that such type of employees work in the organization and companies are loyal and groom them up creating awareness of both company and star performer employee making them house hold name in the society

Here is the plan by jagadish

1.Give to the star performer a licensing ticket to hand it over to anyone who is eligible for job and ask the candidate whether he would take up a 1 week assignment for the company to whom the star performer represents

2.The candidate is assigned the star performer and for 1 week the assigned candidate works for the star performer.

3.After 1 week there is a potential appraisal test is given to the star performer to see whether the assigned candidate worked and contributed to his advancement either physical or mental

4.If there is contribution from the candidate then employee gets a permanent job or if the contribution is less he is given 1 week certificate to use it to get job elsewhere

5.If the candidate is selected permanently to the organization for 3 months to 6 months a special bonus award would be given to the star performer for selecting a good contribution candidature for the company

6.The candidature is happy and star performer also gets a chance to earn additional income

Thought for the day :

How many types of schemes can you think which come closer or lateral thinking after reading the scheme designed by jagadish?

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Fiscal deficit leads to employment

Fiscal deficit is defined as expenditure to spend by nation is more than income earned by the nation

It was said in freefall that if there is no fiscal deficit budget with the government it would lead to huge unemployment as expenditure to spend and to work is more than income or jobs guaranteed


(Work with government is more than employee ratio through creation of jobs under fiscal deficit by spendthrift)

expenditure more than income


The question arises and has been stated in my previous blog as to how deficit budget creates debt for the nation and leads it to poverty. Balancing both deficit and non deficit is vital within a span of central government governance with 5 year plans

Just to generate employment if governments spend money in excess of income earned government has to start minting money to look at employment issue of the nation which is never recorded by any nation even if done census by the nation

What would happen if minting money is started, money in circulation increases leading to huge inflation with demand not meeting supply of scarce resources. Free market never comes into operation at any given point of time even if employment under deficit budget is achieved

Thought for the day

Free market isn’t into operation even if deficit budget is done

Deficit budget doesn’t guarantee nationwide employment but leads nation to poverty

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Economics and marriage

This type of topic is never taken up by anyone. To let you know marriage actually gives you an idea of family budget to maintain and prevents you from becoming pauper or avoids fear in the minds of people who want to be married

I can prove it.

If you are bachelor you like to spend money and not look for greener pastures. even loan sanctioning to bachelors is difficult but if you have children under your belt you can actually get loans and payment mode is also simpler because banks look out for payment package if male is dead. There is guarantee that mortgaged item can be recouped back easily with the help of children

Another importance of marriage in economics is availability of finance is easy because of close relatives being there who can facilitate finance not through their money but through networking

Finance knowledge and awareness and repercussion can easily be faced if you have wider number of elders in and around you specially knowledgeable elders can give you direction with contacts and wife intelligence if chosen properly can add to your lessening of burden with facility of even health insurance packages for the family etc etc in insurance

Think of financial packages available to family if you are married

Thought for the day

Why do people do stupid things by being single when marriage is tension free

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What happens to economy where jobs are more than employees fit to work in them

This scenario is very rare scenario in economics but if at all it happens and it can happen only if old age people fit to work have retired and youth of the country aren’t major and there is a huge gap between generation to work and generation that has retired

In such precarious scenario

1) Companies have to look out for work from home concept
2) Training wings to be made videoconferencing
3) Use of technology would become mandatory
4) ERP would hone up the skills of youngsters
5) Contract based workers/employees from other nations should be considered a better solution

Thought for the day:

Look out for what type of industrial based sector is suitable on priority based which can take up employees on contracts from other nations

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Bureaucracy by definition

Normally people associate bureaucracy as something evil. But in actual practice it is defined by two wings in times of emergency situation it is used. They are

1. Reengineering where company is revamped through less paperwork
2. Restructuring where company is revamped through changing the portfolio of candidatures through creation of few posts or revamping the people associated with those posts by designating them elsewhere

Is bureaucracy evil?


It is not because it is governed through articles of association of a company organization which is monitored by the registrar of companies where day to day affairs are checked and updated?

Any revamp of articles of association function has to be recorded in the minutes report and to be cleared off by the stakeholders in general meeting either quarterly or annually.

Good governance leads to good education of employees,
Bad governance leads to destruction of knowledge capitalism and leading to shutdown of business either geographically or through winding up of company

Thought for the day :

Is their other ways where bureaucracy can be used for the benefit of employees?

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4 stages of Reading explain?

Every nation comes under the purview of reading knowledgeable books but always encounters problems relating to knowledge in storing up information in their brain cells

What scenario do you call this as?

Initially they are in full swing

I will read this book, I will read that book and suddenly he student realizes that I haven’t grasped any information even after reading for so many months and years. what did I accomplish because he wanted to be like P Chidambaram in knowledge and to defeat him black and blue in finance but at last gives up stating he can’t be like Chidambaram , he can only venture only after death and gives up life in frustration

This scenario is called a reading tension scenario---- real scenario encountered while reading information of knowledge




What are these 4 stages of reading

Tighten your belts here it comes

FIRST SCENARIO OF READING

Get as much knowledge into brain cell as much as I can but fails because he encounters problem in storing information in brain cells

SECOND SCENARIO OF READING

After getting few information into brain cells he starts encountering problems while observing others knowledge and comparing it with himself and loses interest in reading knowledgeable books

THIRD SCENARIO OF READING

After passing the second scenario the student encounters criticism from peers that you don’t possess this knowledge or that knowledge, he debates on few and loses in many situations and he gives up knowledge that it is not my den

FOURTH SCENARIO OF READING AND THE LAST SCENARIO

After pushing himself beyond the third scenario of situation he at last comes across the scenario where he grasps matter and diversifies his knowledge with commitment on gaining knowledge with perseverance with debates and dedication towards saraswathi

Thought for the students is

This much of hard work is necessary with reading perseverance to become big stalwart in knowledge. Let’s see whether you can achieve it or give up in any of the scenario before you encounter fourth scenario

Laxmi is encountered only when saraswathi becomes your ally

END