The Financial Markets and The Rest of the US Economy

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The Federal Reserve stepped in to prevent the bankruptcy of Bear Stearns and thereby protect both the financial markets and the rest of the US economy from what it thought could have been massive collateral damage. For the first time in its 85-year-old history, Bear Stearns reported losses in the last quarter of 2007; and amidst fears that the next to hit the wall would be Lehman Brothers, the Fed opted for the $30 billion bail out. The bailout, often termed as a ‘third line of defence,’ is a part of the package, which includes interest rates and tax cuts (now Fed rate is at 2.25%). Many argue that since Q4 results were bad for banking, then post the Q1 results, firms will be begging investors for fresh capital. If forecasts are to be relied upon, then there are another $50 billion of write-downs in the waiting. Marcel Theiliant (Analyst Global Economics, CREDIT SUISSE) avers, “If you think that the worst was over in Q4, then Q1 results will be a rude awakening.” In such a scenario, it will be a real challenge for the ilk’s of Lehman Brothers to raise capital. Nevertheless, the bailout package of $30 billion, followed by the rate cuts, infused in some degree of confidence in the markets.

Days later, when Lehman Brothers and Goldman announced their Q1 profit estimates, it turned out to be quite a relief. The profit estimates have been questioned; some claim that Lehman must have tinkered with the accounting method to suit its ends. The recent developments can be closely compared to the 2001 recession, wherein the S&P indices had gained close to 18% in March and April on the view that rate cuts announced by Fed would stave off a recession. Interestingly, the happiness was short lived and eventually the S&P plumetted, dropping by a whopping 42%.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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ROHIT SHARMA - Another lil’ master?!

IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA

ROHIT SHARMA
Another lil’ master?!

It was one of those nail-biting situations again. The finals of the T20 series, India vs Pakistan. Limited overs, young blood and arch rivals... it was India’s chance to wash away the World Cup 2007 debacle. And indeed, they did! Winning the Twenty20 World Cup 2007 answered many questions, one of them being the selection of young players in the team. And among those young stars was Rohit Sharma whose splendid performance in the series (remember that swashbuckling knock of 50 on a tricky Durban wicket) and especially the unbeaten 30-run knock against Pakistan played a pivotal role in India’s historical win.

“I grew up during a time when India saw Sachin Tendulkar as the biggest icon in cricket. Everyone idolised him and many players still look up to him. And being from the same place as him, it had a huge impact on me,” recalled Rohit when asked for his inspiration for choosing a profession which is almost considered a religion in India... and his inspiration was none other than the God of this very religion. “Every time I watched Sachin play, I got inspired to try harder to find a place in the Indian cricket team,” mused Rohit. If we trace some big names in the world who have created historical records, one would not come across many who’ve had a glorious beginning. And Rohit is another name in the league. With a sluggish start in the early years of domestic cricket, Rohit did not give reasons enough to predict his upcoming accomplishments. But his performance in the U-19 World Cup (where he was one of the top scorers) grabbed the attention of many, which then lead to his selection in the Twenty20 World Cup. And after the triumph in T20, there has been no looking back. Rohit also turned out to be a reliable pick in the CB series in Australia, where he made a significant contribution, especially with his match-winning score of 66 in partnership with Sachin Tendulkar in the first final. And with this, he has also proved to be amongst the most sought after players in the Indian Premier League.

With a cool and composed temperament and cavalier batting technique, this exciting young right-hand middle order batsman has just the desired combination to make him an able replacement for ‘the big three’. Indeed, for reasons obvious, Rohit Sharma, today, is being pegged as one of those whose footing on the pitch is going to be long and strong.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
IIPM Ranked No. 1 B-School In Global Exposre - Zee...
4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!
IIPM Ranked No. 1 B-School In Global Exposre - Zee...