In this article, Anil Selarka or Kalidas (His nick name), describes the folly or Americans, Brits and Europeans in imposing economic sanctions on Arabic and Muslim nations as and when they pleases and freeze their FOREX reserve lying in United States and United Kingdom. It has become self-defeating exercise for them. The Arab nations have started quoting in EURO to obviate $ freezing actions with the result that oil prices have started rising with double speed. The buyer nation of oil has to buy Euro first (and sell dollar) to settle the trade in Euro. The oil prices are therefore getting double boost. One rising oil price due to QE2 program by FED and another forced selling of dollar in favour of Euro. The Author has provided valuable insight into whole affairs for which there is simple solution – De-Freeze National Reserve of any country – lying in United States. Read more…
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.
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….
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
The Author addresses investor’s basic needs at the heightened stage of market stress. He provides comprehensive guidance to almost all Investors – personal to professionals -how to handle their portfolio at this point of time. He narrates in very simple language when to invest new money, and until such time, how to rebalance their present portfolio with existing resources. He also provides tool such as Excel spreadsheet with demo examples. No Author has ever provided such guidance ever. The Author has 40 years of rich experience in banking, stocks, bonds, currencies, commodities in international market.
The article deals with the second round of efforts of the US administration, Mr. Paulson and Mr. Bernanke to get the bill passed authorizing unquestionable authority to spend $700 Bln. This time the Senate has been approached. Should it be passed or rejected again. read further…
The article analyzes the reasons for rejection of Paulson Plan and fall of Dow by 778 points. It discrinminates what is right and wrong and how the rejection will go a long way to cure the ills.
This article is written just after tentative agreement reached between Congress and the President. It squarely deals with the potential fall out in the market and the streets. it also shows how irresponsibly a person like Paulson having 36 days of political life (unless renewed) to spend $700 billion by legalizing the illegal and parallel economy created by the banks and brokers