Author Anil Selarka evaluates the aftermath of Japan tragedy of quake and tsunami. He deliberates on the options open to Japanese government and where it commits serious errors. He says that the best option open to Japan was to sell its dollar reserve and buy yen instead of just printing more and more yen which will cause most serious inflation. With Japanese government throwing almost 25 Trillion yen into the money market (equivalent to $ 300 billions), he says that this money will be up in smoke in just two days. The need of the hour for Japanese government is to indulge into tangible assets growth and its management, not paper trading like money market operations. He says that Yen contrary to all expectation will rise to 60 from 82 level against US dollar. With Japan possibly remaining absent at future treasury auctions in United States, the possibility of higher rates in USA is written all over it. If dollar weakens due to Japanese selling, Chinese the largest holder of US treasury are not going to keep quiet. They too will join Japan which may escalate the currency crisis. The author has written previous article “Enter the Second Stage of Financial Crisis” only a few weeks ago, which may become reality soon due to these unexpected events. The nature is supreme – the author says. One can not continue to suppress truth for a long time. Japanese were doing it for over 16 years, and it finally exploded with natural calamity. Read the article for major effects and economic fall out from Japan quake and following tsunami. The author has also penned a remarkable book “Sub Prime Resolved” which is perhaps the only book that provided total solution to the economic crisis faced by the United States and the world.
Convertible Bonds – How to Invest Series Part – 8
Anil Selarka, author of Sub Prime Resolved, writes Part -8 of How to Invest into anything series under the title – Convertible Bonds. In this comprehensive essay, he explains the complexity of this hybrid instrument in very easy style and language a common investor would understand. At the end of this article, he even introduces a new concept – a simple QUIZ to determine how much the reader understood the article. He also appends Answer Sheet with comprehensive explanation to each answer with reference to the article.
Red Alert for Global Stocks – TSUNAMI 7
There is every possibility that next week beginning from 24-Jan-2010 may see sharp plunge in the stocks and bond prices on the back of 5% plunge in Wall Street last week, notably over 200 points loss on Friday. The stocks were defying correction in spite of all negative data feeding through the market for over several months. The President Obama’s plan for banking overhaul has ignited this correction. Not that the President is wrong, but his presentation and timing is a bit off. One can not afford to make market rattling bland statements without making available enough details to let policy views known. Billions of dollars could be lost as result. The Author’s prediction in December that the correction may start in third week of January and take almost 80% money out of the market on or before 21 Jan 2010 came out bang on target. In this article, the author forewarns the crash and also provide tools to help the investors. Read more….
Maturity Mismatch – Another Banking Crisis in offing
The Author of brilliant book “Sub Prime Resolved” forecasts the looming banking crisis, several times larger than the last year, when almost all banks will come under severe squeeze due to interest rate rise. Almost all banks have granted 30 years Fixed Rate Mortgage to the borrowers while borrowing short term from Fed and Interbank market at near zero interest rate. The long term assets should be financed by long term liabilities, but the banks and mortgage lenders in United States have done otherwise. Trillions of dollars would be lost, several banks could go bust and the present financial crisis will deteriorate into major crisis in USA. The derivative markets too will have huge losses. Blood, blood, blood everywhere. The Author has offered solution to the US government in the form of book ” SUB PRIME RESOLVED” and also wrote to President Obama in recent past, offering him total solution. He went on to the extent that if he could not pull USA out of recession in 9 months, President Obama could sign “Death Warrant” against him with his and his family’s written consent. However, President Obama has no time to even deliberate with the Author. He bothers more about Health Care reform when the biggest banking crisis is simmering right below his Presidential Chair in the White House… Read more
Rating & Mating Game – US abuse of Rating agencies
Rating agencies are rated very high in investor’s world because their actions cause rise or fall in bonds prices. Secretly they all hate them – but they can not be eloquent. Often, these agencies are being abused by the Authorities to serve their political agenda. US despite 12 trillions of debt is rated AAA and China with $ 2.3 trillions of forex reserve is rated A+, Read this article for more insights..
Zero Coupon Bonds (Part 6 ) – Planning everything with Zero
In continuation of series – How to Invest into anything – this is in fact extension of previous article on Zero Coupon Bonds. The Author educates the investors how such instruments come to help in planning everything in their life – education of children, wedding, business, buying of property, retirements, and also division of family wealth in case of disputes Read more…
Bonds,CDs and Bank Deposits build First Wealth..SR 04 of How to invest..
This is continuation of series “How to Invest into anything?” This part SR04 deals with relatively simpler products like Bank Deposits. However, the important part of this article is to teach the investors how to invest even into bank deposits. The author shows implications of many important process, and also explains in very simple terms what an Individual investor should do in such circumstances. He also explains how the Investor reduces his wealth by using plastic money, and how he can become prosperous by intelligent savings. The author also shows how to use Recurring Deposit to build real wealth with common sense planning. Meanwhile, please read more