Tomorrow is my last exam. And guess what it could be, Entrepreneurship. I entered B-School with a thought and now would be leaving School with a crystal clear frame of mind.
HE knows where I am going and I'll surely find my path with HIS blessings. I am sure these are hints that are their to encourage me on my path to destiny.
I have to and would surely make it. Its just am getting a good feel. I just want to thank HIM for his blessings.
I just know 'Its Written'.
Thursday, February 19, 2009
Sunday, February 15, 2009
Gtalk Messages with Date
07-Dec-2009: 'Change will not come if we wait for some other person or some other time. We are the ones we've been waiting for. We are the change that we seek'
05-Dec-2009: 'Basketball captains in college invariably stop playing basketball by the time they have their second child. They give up something that meant so much to them. They do it for their family. But in doing that, the spark dies. Never, ever make that compromise' Not Not Fountain Head.
19-Aug-2009: 'He had an exceptional faith in that once he left ...., he would arrive,And that once he arrived, he would fight.And that fighting, he would win.'I share(d) his optimism 'Bombastic Day in Delhi' The best way to jump off the clip, 'JUMP', Easy Solution,Fun lies in beating 'GRAVITY'
09-July-2009: 'Help a man when he is in trouble and he will remember you when he is in trouble again' :)
30-June-2009: When I bet, I know I'll win for sure; but when I know I'll win for sure, I don't bet.
15-June-2009: Every time I think, I feel I need to run; Every time I run, I feel I need to run faster; Every time I run faster, I feel I need to fly; I dont know how long will it take, But I can feel that am running short on it.
19-Feb-2009: Last Exam - Entrepreneurship :)
15-Feb-2009: 'Mauke milte nahi hein, banaye jaate hein;kaamyaabi hum tak nahi aati, hume kaamyaabi tak jaana hota hein;apne raaste per chalte raho, chalte raho, dheere dheere saari duniya tumhaare raaste per aa jaayegi' - Classy One
05-Dec-2009: 'Basketball captains in college invariably stop playing basketball by the time they have their second child. They give up something that meant so much to them. They do it for their family. But in doing that, the spark dies. Never, ever make that compromise' Not Not Fountain Head.
19-Aug-2009: 'He had an exceptional faith in that once he left ...., he would arrive,And that once he arrived, he would fight.And that fighting, he would win.'I share(d) his optimism 'Bombastic Day in Delhi' The best way to jump off the clip, 'JUMP', Easy Solution,Fun lies in beating 'GRAVITY'
09-July-2009: 'Help a man when he is in trouble and he will remember you when he is in trouble again' :)
30-June-2009: When I bet, I know I'll win for sure; but when I know I'll win for sure, I don't bet.
15-June-2009: Every time I think, I feel I need to run; Every time I run, I feel I need to run faster; Every time I run faster, I feel I need to fly; I dont know how long will it take, But I can feel that am running short on it.
19-Feb-2009: Last Exam - Entrepreneurship :)
15-Feb-2009: 'Mauke milte nahi hein, banaye jaate hein;kaamyaabi hum tak nahi aati, hume kaamyaabi tak jaana hota hein;apne raaste per chalte raho, chalte raho, dheere dheere saari duniya tumhaare raaste per aa jaayegi' - Classy One
Wednesday, January 28, 2009
Things learnt in SabjiMandi
Went to IIML for 'Next CEO'. On the second day we had an event where we were divided into 4 teams of 3 people and were told to make profits in Sabji Mandi. The team that made highest profit was Rs 160 and we were last with a profit of Rs 90. Our team consisted of IIMC guy, SIBM guy and me.
Fucking mistakes and things I learnt:
1) Never be over-confident of yourself, even if you are the best. (I made the maximum profit single handedly off all the 12 guys but still our team had the minimum Profit)
2) Always be prepared for each and every thing, even if you have easy going/over confident people in your team.
3) What we learn in Management Books, Strategic Planning is the important thing. All three of us kept working, never realizing where our profits were going.
*** Always take out time from your business, see where you are going, where you really want to go, where your competitors are going, n what better strategies are they following, it will surely benefit you ***
Remember - One minute break after an hour of CAT's exam always gave better 2nd hour's output rather working for 2 hours straight.
4) Don't trust people easily when it comes to money/competition(of ny form), people would change and would do things you had never thought off. Rationality fails when it comes to practicality. It holds good only in puzzles. (Mind you I was with best of the best IIM A,B & C guys)
5) ***Most Important: Don't hesitate to say anything when you know you are right. And be ruthless with those who don't have basic respect for others. ***
Fucking mistakes and things I learnt:
1) Never be over-confident of yourself, even if you are the best. (I made the maximum profit single handedly off all the 12 guys but still our team had the minimum Profit)
2) Always be prepared for each and every thing, even if you have easy going/over confident people in your team.
3) What we learn in Management Books, Strategic Planning is the important thing. All three of us kept working, never realizing where our profits were going.
*** Always take out time from your business, see where you are going, where you really want to go, where your competitors are going, n what better strategies are they following, it will surely benefit you ***
Remember - One minute break after an hour of CAT's exam always gave better 2nd hour's output rather working for 2 hours straight.
4) Don't trust people easily when it comes to money/competition(of ny form), people would change and would do things you had never thought off. Rationality fails when it comes to practicality. It holds good only in puzzles. (Mind you I was with best of the best IIM A,B & C guys)
5) ***Most Important: Don't hesitate to say anything when you know you are right. And be ruthless with those who don't have basic respect for others. ***
Monday, January 12, 2009
IIMK vs IIMB Sangram 2009
Jan 10-11' 2009 were historical days in the life of Sangram as well as IIMK. Sangram meet is IIMK vs IIMB sports meet. This time around 150 students came to campus from Bangalore.
The best thing this time was that we won most of the matches on temperament. All the close matches were in our pocket, it was only those matches where IIMB had excellent players which went in their favor.
By Sunday evening, the score was 6-5, IIMK leading and Tennis/Chess were going on. There was some fight on Tennis Court where both the captains kept to their ego, and Chess players were also asked to stop playing. Basky(my game) which was supposed to start at 6PM never got started.
So IIMB guys had made it clear that they won't be playing any game now. N they left for IIMK Campus from NIT (where matches were being played) to pack their stuff. Adrenaline was rushing at full flow in IIMK junta n they wanted the Trophy at any cost as the score was 6-5 and IIMB guys were not playing other sports. IIMK junta was standing outside the Hostel where IIMB junta was staying, n sledging to full. ‘B ki ma ka ******'
Diro was called n finally it was decided Trophy will be kept in Diro's office for 6 months n in IIMB after that.
I believe IIMB lacked sportsman sprit, n they played unfairly, also IIMK junta took Trophy in a way which was not fair, but it leads to another fundamental question 'If its right to be unfair with THE unfair ?'
In Mahabartha also, Lord Krishna asked Arjun to kill Karan although according to rules Arjun could't kill him as Karan was without weapon due to curse given by one of the Rishi's to him.
But Arjun attacked and killed him. If we go with this logic it may be fine, but then thinking a bit more deeply it seems unjust to me. That fight was between Good/Evil. It was like which thing is stronger. Evil has always used ammunitions of fraudulence. The use of the same by Good does not make him win, rather loose the event even before they win the battle. He is in a way using Evil’s ammunitions/strengths to win, which defeats the purpose of war for which it was being fought.
My opinion, I believe what happened in Mahabartha was not fair, and with the same logic what happened in IIMK was also not fair. One should play with Spirit rather making hungama out of nothing. But then this may not be practical, but idealistic of course. N at this point of time we don't have our idealistic fundas right too (:
The best thing this time was that we won most of the matches on temperament. All the close matches were in our pocket, it was only those matches where IIMB had excellent players which went in their favor.
By Sunday evening, the score was 6-5, IIMK leading and Tennis/Chess were going on. There was some fight on Tennis Court where both the captains kept to their ego, and Chess players were also asked to stop playing. Basky(my game) which was supposed to start at 6PM never got started.
So IIMB guys had made it clear that they won't be playing any game now. N they left for IIMK Campus from NIT (where matches were being played) to pack their stuff. Adrenaline was rushing at full flow in IIMK junta n they wanted the Trophy at any cost as the score was 6-5 and IIMB guys were not playing other sports. IIMK junta was standing outside the Hostel where IIMB junta was staying, n sledging to full. ‘B ki ma ka ******'
Diro was called n finally it was decided Trophy will be kept in Diro's office for 6 months n in IIMB after that.
I believe IIMB lacked sportsman sprit, n they played unfairly, also IIMK junta took Trophy in a way which was not fair, but it leads to another fundamental question 'If its right to be unfair with THE unfair ?'
In Mahabartha also, Lord Krishna asked Arjun to kill Karan although according to rules Arjun could't kill him as Karan was without weapon due to curse given by one of the Rishi's to him.
But Arjun attacked and killed him. If we go with this logic it may be fine, but then thinking a bit more deeply it seems unjust to me. That fight was between Good/Evil. It was like which thing is stronger. Evil has always used ammunitions of fraudulence. The use of the same by Good does not make him win, rather loose the event even before they win the battle. He is in a way using Evil’s ammunitions/strengths to win, which defeats the purpose of war for which it was being fought.
My opinion, I believe what happened in Mahabartha was not fair, and with the same logic what happened in IIMK was also not fair. One should play with Spirit rather making hungama out of nothing. But then this may not be practical, but idealistic of course. N at this point of time we don't have our idealistic fundas right too (:
Tuesday, January 6, 2009
Some Interesting articles of this year,2009
Water more useful than Diamonds, still Diamonds cost more ?
Earlier things were seen from Theory of Utility to Consumer, than they were seen as a factor of production (the trouble of acquiring it) and now it is seen in the terms of Marginal Utility - The least important use to a person. The water in Punjab had lesser utility value when underground water table height was higher.
Earlier things were seen from Theory of Utility to Consumer, than they were seen as a factor of production (the trouble of acquiring it) and now it is seen in the terms of Marginal Utility - The least important use to a person. The water in Punjab had lesser utility value when underground water table height was higher.
Monday, January 5, 2009
Business Idea- Bloggers
Bloggers would be the key thing in the coming time when it comes to Marketing. I believe Google is a business market where online users (customers) come in search for Product and they have decent stuff in their hand while they leave. That use to happen in ancient times, people going to common market and checking all the products. This is good for customers when they already know or have an idea what to buy & it’s also good for companies when they are in Main Street Phase.
Commercial Sites are like Business Houses. And Blogs are homes of customers. What about the products which have new market or have been just launched. Bloggers are key to it i.e. we profile the bloggers and target the customer segment that is our set. Good for Companies don’t have to do mass marketing like conventional Google, good for Customers (bloggers) they are getting advertisements at their home (blog).
So the key issues lies in making a world for Bloggers. May be social networking or something like Wikipedia not very sure what can be done or an online newspaper for bloggers.
Commercial Sites are like Business Houses. And Blogs are homes of customers. What about the products which have new market or have been just launched. Bloggers are key to it i.e. we profile the bloggers and target the customer segment that is our set. Good for Companies don’t have to do mass marketing like conventional Google, good for Customers (bloggers) they are getting advertisements at their home (blog).
So the key issues lies in making a world for Bloggers. May be social networking or something like Wikipedia not very sure what can be done or an online newspaper for bloggers.
Friday, December 26, 2008
Sub Prime Crisis
The U.S. bond market is almost twice the size of the combined market capitalization of all U.S. stock markets. Bonds are big players on the global financial stage. U.S. bond market debt (generally referred to as "the bond market") exceeds $27 trillion—making it by far the largest securities marketplace in the world. Mortgage Related Securities is $7.2 Trillion out of $27 Trillion.
Different types of Mortgages in US
1) Government Backed Mortgages- Administered by Federal house Administration, Veteran's Administration.
2) Conforming Mortgages- Mortgages eligible for purchase by Fannie Mae and Freddic Mac. Upto credit risk of 80% LTV and good credit history.
3) Jumbo Loans- Mortgages with principle greater than Conforming loans.
4) Sub Prime and Near Prime Loans- Subprime less than 620, Near Prime 620 to 680, Prime above 680.
5) Alt-A- When near Prime loans r securitized. They form Alt-A.
Sub Prime Lending is 20% and Jumbo Prime Lending is 12% as shown in Figure. So MBS which are causing turmoil are worth 1.44 + 0.86 Trillion.
Contract Features:
1) Fixed rate mortgage
2) Adjustable rate mortgage
To avoid high initial mortgage payments, many subprime borrowers took out adjustable-rate mortgages (or ARMs) that give them a lower initial interest rate. But with potential annual adjustments of 2% or more per year, these loans can end up costing much more. So a $500,000 loan at a 4% interest rate for 30 years equates to a payment of about $2,400 a month. But the same loan at 10% for 27 years (after the adjustable period ends) equates to a payment of $4,220.
Flaw1:
ARM at low interest rate means people taking more advantage of leverage. Such ARM's should be reduced and loans should have been given cautiously.
Mortgage Funding
1) GNMA or Ginie Mae securities are collateralized by FHA/VA securities.
2) Non Agency Mortgage Market: Jumbo and Sub Prime Lending in this category.
FreddiMac and FannieMae
1) Mortgaged Backed Securities
2) Debt Securities
Fannie and Freddie account for half of all mortgages in the US. Freddie and Fannie have lent or underwritten about £2.7 trn of the total £6 of outstanding mortgage debt in the US.
Flaw2:
They should have underwritten those Mortgages under more guidelines. Rather than becoming an intermediately and giving guarantees which can't be fulfilled. These organizations were the one who leveraged the problem to hell.
I-Banks and Commercial Banks
They were the one's to invest heavily in the Mortgage Securities.
Losses
CitiBank 56 Billion
Merrill 45 Billion
UBS 43 Billion
Flaw3:
Even AAA Rated thing has a systematic risk which should be considered. Even though the probability of occurrence might be meager but still it could have a cost, considering its weight. Everyone was betting over the Systematic Risk on Unsystematic Risk.
Effect over??
Properties with Foreclosure Activity
1.4 million In 2007
2.1 Million As in 3 quarters 2008.
'There are roughly 13 million subprime loans in the market today, the MBA says'.
How could it have been checked? Indicators ?
1) Home loans GDP ratio in US, UK continues to be at 50% as against 5% in India, it could have been an indication.
2) Subprime loans grew to 13.6 percent of the total mortgage market in 2006 from 2.4 percent in 2000, according to the Mortgage Bankers Association.
Solution
Long Term
1) Have better regulations on the Lender as well as Underwriter side.
2) Improve the employment opportunities in US
Short Term FannieMae
To achieve a more affordable mortgage payment, your loan servicer may:
1) Extend the term of your loan to as much as 40 years
2) Reduce your mortgage interest rate for a period of time
3) Defer payment of part of your principal, or offer a combination of all three.
'It is popular to take low lending standards as proof that the free market has failed, that the system
that is supposed to reward productive behavior and punish unproductive behavior has failed to do so'. May be it is inherent to Human that they have a short term approach and believe in the policy 'Let the last man bear'.
Different types of Mortgages in US
1) Government Backed Mortgages- Administered by Federal house Administration, Veteran's Administration.
2) Conforming Mortgages- Mortgages eligible for purchase by Fannie Mae and Freddic Mac. Upto credit risk of 80% LTV and good credit history.
3) Jumbo Loans- Mortgages with principle greater than Conforming loans.
4) Sub Prime and Near Prime Loans- Subprime less than 620, Near Prime 620 to 680, Prime above 680.
5) Alt-A- When near Prime loans r securitized. They form Alt-A.
Sub Prime Lending is 20% and Jumbo Prime Lending is 12% as shown in Figure. So MBS which are causing turmoil are worth 1.44 + 0.86 Trillion.
Contract Features:
1) Fixed rate mortgage
2) Adjustable rate mortgage
To avoid high initial mortgage payments, many subprime borrowers took out adjustable-rate mortgages (or ARMs) that give them a lower initial interest rate. But with potential annual adjustments of 2% or more per year, these loans can end up costing much more. So a $500,000 loan at a 4% interest rate for 30 years equates to a payment of about $2,400 a month. But the same loan at 10% for 27 years (after the adjustable period ends) equates to a payment of $4,220.
Flaw1:
ARM at low interest rate means people taking more advantage of leverage. Such ARM's should be reduced and loans should have been given cautiously.
Mortgage Funding
1) GNMA or Ginie Mae securities are collateralized by FHA/VA securities.
2) Non Agency Mortgage Market: Jumbo and Sub Prime Lending in this category.
FreddiMac and FannieMae
1) Mortgaged Backed Securities
2) Debt Securities
Fannie and Freddie account for half of all mortgages in the US. Freddie and Fannie have lent or underwritten about £2.7 trn of the total £6 of outstanding mortgage debt in the US.
Flaw2:
They should have underwritten those Mortgages under more guidelines. Rather than becoming an intermediately and giving guarantees which can't be fulfilled. These organizations were the one who leveraged the problem to hell.
I-Banks and Commercial Banks
They were the one's to invest heavily in the Mortgage Securities.
Losses
CitiBank 56 Billion
Merrill 45 Billion
UBS 43 Billion
Flaw3:
Even AAA Rated thing has a systematic risk which should be considered. Even though the probability of occurrence might be meager but still it could have a cost, considering its weight. Everyone was betting over the Systematic Risk on Unsystematic Risk.
Effect over??
Properties with Foreclosure Activity
1.4 million In 2007
2.1 Million As in 3 quarters 2008.
'There are roughly 13 million subprime loans in the market today, the MBA says'.
How could it have been checked? Indicators ?
1) Home loans GDP ratio in US, UK continues to be at 50% as against 5% in India, it could have been an indication.
2) Subprime loans grew to 13.6 percent of the total mortgage market in 2006 from 2.4 percent in 2000, according to the Mortgage Bankers Association.
Solution
Long Term
1) Have better regulations on the Lender as well as Underwriter side.
2) Improve the employment opportunities in US
Short Term FannieMae
To achieve a more affordable mortgage payment, your loan servicer may:
1) Extend the term of your loan to as much as 40 years
2) Reduce your mortgage interest rate for a period of time
3) Defer payment of part of your principal, or offer a combination of all three.
'It is popular to take low lending standards as proof that the free market has failed, that the system
that is supposed to reward productive behavior and punish unproductive behavior has failed to do so'. May be it is inherent to Human that they have a short term approach and believe in the policy 'Let the last man bear'.
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