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Saturday, September 24, 2011

Recession Returns ??

Second Recession: why is it imminent?
Factors indicating to recession
1) Growth rate of Germany:- 0.1%
2) France virtually no growth last quarter
3) Euro Zone as a whole -0.2%
4) Steep fall in the stock exchange across the world.

Reasons behind the Recession
1)Slow growth in the economy of the developed countries .This, in turn, affected the growth of the countries depending on export like Germany, and is a threat to growth of countries like China, India etc. The growth of developing countries, which negates this stagnation, is marred by alarming increase in the inflation. So, government here is forced to contract spending and increase interest rate, which can further lead to impediment of economic growth in these countries. These entire factor, led to dip in confidence and volatility in finance market.
2)Due to bail out packages rolled by the various governments to counter recession, the global debt of the world increased substantially. Although ,for world as whole it is still 69 % of the total GDP , for individual countries like Greece and Italy it is as high as 151 and 101 % , respectively. Earlier, market believed that other countries from EU will help these countries in bailing out from financial crisis. Now, when it is clear that UK, France, Germany all are plagued by a certain degree of economic crisis. So, the bailout package provided by the EU will be limited. Hence, the bond price fell and interest on them increased. Also the crisis originating from Greece is not contained there, but is extending itself to entire EU. Italy, Portugal, Spain and to some extent France is already facing the music
3)The above factor made serious dent in belief that the Treasury bond is a safe haven. Sovereign default now appears plausible. This has led to increase in interest rate paid by government to the bank in lieu of borrowing, even in the countries where net debt to GDP ratio is relatively not that high.
4)In the USA, public debt has increased considerably, due to stimulus package rolled out to counter the recession. To reduce this debt, government could either increase tax or withdraw the package. Sadly, it chose later leading to contraction in public expenditure rather than expansion. It not only slowed down economic growth, but also led to rejection of public expenditure as tool to counter recession .The same tool which was used to counter economic downturn since the Great Depression of 1929.
If we combine all these factors we reach to a conclusion that a second wave of global downturn is a certain possibility. In fact signal of the same has already stated to come. What makes this global downturn more sinister is that there is no mean at least in sight, at present that may stall this recession. So, this recession will last longer than the previous one because the financial weapon which was used to rein the first one has now been abjured by various nations in the world.

Friday, June 10, 2011

4OO days Of summer

If the ObviOus’ is true…I’m left with Only clue…
As the time paint my peace in a strange hue…
When the truth is beating rOund the bush…
I just see my tender dreams crush
In a gush which is dictated tO all my days…
In a rush to reach the sweetest place…
I see convOlutions but nO cOnclusiOns
FOr sOmeOne sticking tO the nOtiOns…
I wish I cOuld slide intO that velvety heart…
And get each Of its page by heart…
Wishes hmm, dOgmas , deceiving perceptiOns
FOr sweltering summer here tOO appear springs…
Whatever is yur say …My heart just hOsts your stay…
Waiting fOr the day that unleashes the cute play!!!

Friday, January 7, 2011

AnOther fOrm Of lOve

It was a typical May Saturday afternOOn.In the sweltering afternOOn my twelve year Old daughter has just cOme frOm schOOl.Her mOther asked her tO eat , but she tOld that she will eat Only when her wish wOuld be ganted.She was alsO nOt ready tO reveal her wish Only when we wOuld promise tO fulfill it.
Her mOther made all pOssible effOrt tO trick her intO eating.But in vain.After that my wife put all the blame On me fOr her behaviOur. AccOrding tO hert it was my pampering that made her sO admant.My mOther whO was watching TV alsO gave me her blamish lOOk.
Even I was dumbstruck. My daughter is nOt like that.She is very desciplined child.As far as I cOuld recall never had she displayed such behaviOur .I was really intrigued. I called her and cuddingly asked what the matter was.
She began tO cry.Drops Of tear trickled On her reddish cheek.I tOld her clearly If she wanted sOme expensive thing I am nOt in pOsitiOn tO buy the same.But she told she didnt' want any expensive item Or gift.
Even a cruel hearted persOn will melt seeing my little dOll crying and I m a very kind hearted persOn. I gave her my wOrd and appeased her tO eat .
After she finished eating , I again enquired abOut the matter.What she tOld was Out Of wOrld.NOt in my wildest dream cOuld I imagine the same."I want tO shave my hair and gO bald " was all she tOld.I was dumbstruck.My mOther whO was watching all these prOceeding silently , nOw started cursing me.
"What a wOrld !! NOw a girl will same her hair. really the Kalyug has arrived and .... " my mOther was hurling all the curse . The accusation Of my wife nOw grew lOuder and lOuder.Even I was speechless.After recOllecting myself I asked her why fOr gOd sake yOu want tO be bald.But she refuse tO buzz and kept reminding me Of my prOmise.
AnyhOw I granted her the permissiOn.I cOuld nOt refuse and set a bad precedence fOr her.
Next Monday when she was leaving fOr schOOl I accompanied her tO see that students dO nOt make fun Of her.After reaching schOOl I parked my car and went inside the campus.I wOuld have walked a few step Only . I saw a lady apprOaching tOwards me.She tOld me that yOur daughter is great girl.I was amazed.Then she tOld me the stOry.
She tOld that her sOn was diagOnised with cancer.So he had tO shave his hair fOr chemOtherapy.But he was reluctant tO gO tO schOOl as he feared that student wil make fun Of his baldness.When my daughter came tO knew this she cOnsOled her.She prOmised that she tOO wOuld gO bald and give him cOmpany .Then everybOdy will buly her because she wOuld be a bald girl.

TwO drOps Of tears trickled On my face . NOw I was really prOud Of my girl and the way I brOught her up.