Unidentified Hidden LEVERAGE !!!!!!

Dear Friends,

All of you might have heard the term "Leverage" or "Financial leverage", with reference to organizations, but here I want to draw your attention on a new kind of leverage, which I want to term as "Domestic leverage".

The concept was old; just the nomenclature is new. As all of us know that in current scenario more and more people are using loans for fulfilling their needs, actually we should say for fullfilling their 'WANTS'. 

I just want to say that these loans are also double-edged sword as financial leverage. The meaning is that when a family or person takes loan fron any lender, he/she plans that he/ she will be having so and so income for the coming periods, out of which he will repay the loan. The whole scene is very good, till then the planning runs smoothly, but think for a while what will happen if the person losses the source of income, then from where he will repay the loan? He will not be in the situation to fulfill his basic needs, then from where he will get the money to repay all those debts?

Thats why i am really against the tendency of "Udhaar Lo aur Ghee pio", i think the lesson that our ancestors thaught us in Indian culture that "Jitni chaadar ho utna hi per failaao", is absolutely right. 

So my dear friends if you want to borrow money, then atleast borrow money for productive work, which will give you a future source of income to repay the loan such as- Educational loan, Business loan etc. But one should really avoid the habit of borrow funds for luxuries, what the lenders call them "Personal loans".

Satyam: The White Lie

Finally Raju's "satya" unrevealed. 

Public knows that they have lost their money, there is a traumatic condition in IT market.

This scandal has put a question on the role of regulatory bodies specially SEBI in Indian capital market. The question is that is SEBI really playing the duty of safeguarding investors' interest?

After Harshad Mehta scam, it took a long time to build confidence in investors, see how much time this will take?

The question infront of an ordinary investor is that who will secure their investments, ofcourse "there are no free lunches in life", but then also the regulatory bodies must ensure the proper disclosure of the relevant informations regarding any organization.

The governmet or RBI must take interest in the matter, and try to establish the corporate government practices. See what the Satyam Board will do in this ? 

What I can say, that investors must not loose there trust and confidence, a panic environment will make the condition worse. Ofcourse, be very alert while investing in such a volatile market.

So the magic mantra is "Don't worry, be positive."