Do not be sad

Don’t be sad: for sickness is a transient state of being; the sin can be forgiven, the debt will be repaid; the captive will be released, the beloved one who is abroad will return, the sinner will repent and the poor will be increased in their wealth.

Do not be sad, for do you not see how the black clouds disperse and the violent winds subside? Your hardships will be followed by comfort and your future is bright.

Do not be sad, for the blaze of the sun is extinguished by luxuriant shade, the thirst of noon is refreshed by fresh water, the pangs of hunger find relief in warm bread and the anxiety of sleeplessness is followed by calm response, the pains of sickness are soon forgotten after the return of health. It is only upon you to forbear for a short time and to be patient for a few moments.

Do not be sad, for even doctors, wise men, scholars, and poets are weak and unable to defy or change that which has been decreed.

Ali ibn Jabla said:

“Perhaps a way out will come, perhaps,

We comfort ourselves with perhaps

So do not despair when you meet

With affliction that weakens your spirit

Since the closest one comes

To relief, is when he loses all hope”

Do not be sad: select for yourself that which the almighty has chosen for you

"Stand if HE causes you to stand and sit if He orders you to sit. Show patience if He has made you to be poor and be thankful if He makes you to be rich. These points are understood from the statement: I am pleased with Allah as my lord, with Islam as Religion and with Muhammad as a Messenger”

And an Arab poet said:

“Do not weave a plan for yourself,

The people of plotting are destroyed,

Be contended with our decree,

We are worthier to plan for you than you yourself”

Do not be sad, because if you are, you disturb your soul and heart, and you prevent yourself from sleeping.

And an Arab poet said:

“How often is the young man overcome with despair when afflicted, and with Allah is the way out,

The situation becomes unbearable and when its rope tightens, it snaps, and throughout, he never though that he would be saved”

Your life is the product of your thoughts. The thoughts that you invest will have an indelible effect upon your life, regardless of whether they are happy or miserable thoughts.

“Fear does not fill my heart before the occurrence of that which is feared,

And I don’t become overly distressed if that event does occur”.

Story of Dubai

It is only when the tide goes out that you find out whose artificial islands are built on sand. Dubai, the glitzy debt-fuelled emirate famous for its its extravagant sky-scrapers and man-made lagoons

Once a desert and now a concrete jungle, from the acme of the world economic roar to the precipice of bankruptcy, what has gone erroneous in the so-called glittering state in the desert?

They say climates during different periods of the year remains the same, so in property market, the prices of property. But the logic behind these statements is unsound, or once again reiterates that future is uncertain and nothing can be taken for granted. As the common saying goes, what goes up has to come down eventually, no matter what anyone says. That is the way how this world moves around. Nothing is certain.

Coming to the main picture, where is the glittering, charismatic, charming and enigmatic city of UAE? Dubai had its run in my opinion, but still nothing can be counted out. The essence of moral governance is what the need of the hour is.

Over the past few years or so, I have been trying to make people understand that, nothing is permanent and everything is just having its fancy run and if people exploit it more than its limit, the effect would be disastrous especially in property and stock markets. It felt, like my opinions used to always fall on deaf ears or people used to consider that what does this fellow knows when he has no experience. Fast forward, 3 years later to 2008 January, I again remind people, don’t ride your luck, because the fundamentals of the markets are completely wrong, and warn them, liquidate your position and move out from the market. Again, it fell on deaf ears. I tried; again, briskly for another 2-3 months even after Bear Stearns collapse, no one listens. I resign in educating them, as it was always like talking to a stone. September they get the message which was theoretical till now in reality and they start realizing what I had been advising them and how they had plugged their ears to some simple advice.

The world was in a panic, and people started to worry and pessimistic outlook was the picture was next2-3 months. But then, the governments and media round the world, started to portray a positive picture that economies are improving and infatuate the performance of companies who have done good to raise investor confidence.

During all this time, a group of its own, or a continent in a sense was performing average. Yes, I am talking about the Gulf or the Arab world which was safe on its shore which was not affected by any of these. People used to say, the gulf, was insulated from all of these global effects. But boy, where they wrong. Tried to again provide the reality and outlook, the effect the gulf would have, but no one cared to listen. Following are some of the outlook given by me which still stands tall and sound

1. The Arab region can live on its oil wealth for a long time and can have steady source of income as long as the world cannot find an efficient and cheaper alternative source of energy. Having said, that, where did the Arabs invest their surplus wealth? It was invested mainly in US and UK markets and some in other European markets.

2. Not all regions in gulf are blessed with abundant oil reserves. Some of them, are service oriented economies and they are always directly proportional to mood of the global economy i.e.; if people are pessimistic, the service economies will get hampered badly and if people are optimistic vice versa

3. Never will the property market stay high or over inflated, because natural correction will take place if people don’t take the necessary measures. The rope can cut off any moment on its own if it inflates more than imaginative numbers. Most of the Arab regions development in terms of property and infrastructure is on loans round the world. They should have been sensible enough to use their cash assets especially when they are service based economies. The global downturn left many financial workers unemployed. The population fell an estimated 17%, meaning there was little demand for new properties.

4. Money always causes trouble. The more you get, even more you want. People don’t know where to invest, who to ask advice and so on. This is where everything started to go wrong. You start taking expert consultants and their services and listen to them to invest in derivatives, CDO, ABS etc... which even they don’t have any idea and you end up losing more

5. No backup plan for serviced oriented economies if something goes wrong.

It’s not always necessary that whatever has been said is always right. But then, why would one not want to look at the other side of the coin before basing decisions?

Fast forward and today we are talking of one of the most glamorous city Dubai, which is like the New York of USA, London of UK and so on... Dubai has become a victim of its own financial mismanagement and lack of proper policies and check points in place. How can the administrators miss the fact that, the economy has 140 % of debt of its GDP? This is preposterously very high. During the boom, the government of Dubai and its enterprises ran up at least $80bn of debt obligations. This may be a lot of money for a small country, but it pales in comparison to Lehman Brothers’ $613bn of liabilities. Dubai is a big property developer and a heavily indebted government, but a small financial player. Still, this little pebble in the Gulf created big waves in markets

Mistake

The Emirate evidently expanded too fast and ran up heavy debts by embarking on vanity projects of doubtful financial viability, such as the 810 meter-high Burj Dubai skyscraper — the highest in the world — and the artificial islands built in the shallow waters along its coast, to provide room for miles of luxury villas. These, in particular, could be vulnerable to a rise in sea-levels due to global warming. In view of the hot and humid climate in the Gulf, Dubai’s emphasis on high-class tourism may prove to be a mistake.

There was also less demand for luxury holidays. Dubai companies have borrowed money to fund huge building projects such as "The World" and are now unable to repay it. There are jitters on financial markets about who lent all the money. European banks are estimated to have lent more than £50bn to the whole of the United Arab Emirates

Dubai does not have the enormous oil wealth enjoyed by its neighbours such as Abu Dhabi. Its main source of wealth has historically been as a port.

Its real advantage, however, lie in its location — as an international trading and financial hub between East and West — and in the quality of the people who have chosen to live and work there. These assets are bound to see it through.

I have read and heard from different sections that Dubai has traditionally had close trading ties with Iran, a short distance away across the Gulf. Entrepot trade has been worth billions of dollars a year. But American pressure on international banks to deny credit to Iran has hampered this trade, and has no doubt been a factor, if a minor one, in the triggering the present financial crisis. A resolution of the West’s quarrel with Iran could be to Dubai’s great advantage.

In recent years it has sought to make money from property development and luxury tourism, building impressive hotels such as the Burj al-Arab.

There was also less demand for luxury holidays. Dubai companies have borrowed money to fund huge building projects such as "The World" and are now unable to repay it.

There are jitters on financial markets about who lent all the money. European banks are estimated to have lent more than £50bn to the whole of the United Arab Emirates.

Dubai state-backed companies may also have to sell-off some of their assets overseas such as luxury property in London and the Turnberry golf course in Scotland.

Way ahead

It is always difficult and confusing to decide the road map for any country when it’s fundamentally rocked from its foundation. We should remember that the economic crisis which unfolded in 2008 was caused by a build-up of leverage. As the crisis unfurled, policymakers rescued debt holders, rightly betting that the best escape route was to meet obligations to creditors and then rely on future economic growth to make debts manageable.

As a result, the financial system remains over-leveraged and undercapitalized. Growth may be returning and green shoots breaking through, but this week has confirmed that the world is not yet in the clear. The financial system remains fragile. Losses and clouds of uncertainty, such as those now hanging over the Gulf, can still trigger skittish sell-offs.

Markets will not soon or necessarily return to the panic of September 2008: the financial sector now has state backstops. But, because of these guarantees, fearful investors have started to worry about how safe sovereign debt is. Investors are growing nervous about Greece and Ireland, in particular because they are also service based economies.

But one should not think that panic of September 2008 not to repeat as Thousands of migrant workers, mostly from South Asia, are already stranded in the emirate, and there are likely to be more over the coming weeks as more companies cease their operations or face cutbacks.

These men will have difficulty returning home and the flow of money to their home would start to dry up and the world will start to see a credit crunch and the economy would be pushed back to the deflationary mode especially in terms of spending by consumers which will impact the world because the world economy is inter-related and inter-dependent.

One should not, however, be overly pessimistic. In my view at least, the world has been far too quick to suggest that the glossy city-state is about to go bankrupt. This is far too gloomy a prediction. Dubai will undoubtedly weather the storm because it has many assets in many parts of the world, some of which can be swiftly monetized such as luxury property in London and the Turnberry golf course in Scotland and Abu-Dhabi is the last spring of help, but if this does not materialize, I guess we would have to confine the stories of Dubai to the textbooks.

There is always a good side to crises such as these. They force decision-makers to pause and take breath, and to reflect on the sort of societies they wish to build because in a sense, Dubai has been sailing on the wrong path.

Please Drink Fresh Fruit Juice

Your moods as well as the clarity of your thinking are dependent on the food you consume. This is why ancient sages ate only light foods. They knew that anything more would disturb the perfectly peaceful minds they had worked so hard to cultivate and disrupt their meditations on the true meaning of life.

It’s like, if you had a formula 1 race car, you wouldn’t think of fuelling it with anything less than premium grade gas. Anything else would reduce its performance. So, why would you put anything less than the best foods into your body, which is an even more valuable performance vehicle? Eating the wrong foods, in large quantities, will reduce your energy level, affect your health and more importantly prevent your mind from serving you to its fullest capacity. Realizing that for every greasy lunch you have you will suffer a corresponding reduction in your level of motivation and effectiveness is the first step to developing more disciplined eating habits.

One of the best strategies I can share with you to boost your energy level and your mood is to get into the daily habit of drinking fresh fruit juice. The juices you can make taste great and I cannot begin to describe how wonderful you will feel once you start drinking a glass of strawberry – apple or orange juice every morning before you leave your place.

Stop Complaining Start Living

Stop complaining about having no time for yourself and get up an hour earlier. You have the option, why not exercise it? Stop complaining about not being able to exercise given all that is on your plate these days. If you sleep 7 hours a night and work 8 hours every day, you still have more than 63 hours of free time every week to do all the things you want to do. This amounts to 252 hours every month and 3024 hours every single year to spend on life’s pursuit. There has never been a more exciting time to be alive in the history of the world and you have the choice to seize the boundless possibilities that every day presents.

If you are not fulfilled or as happy or as prosperous or as peaceful as you know you could be, stop blaming your parents or the economy or your boss and take full responsibility for your circumstances, this will be the first step to a completely new way of looking at your life and the starting point of a better way to live. As George Bernard Shaw said” The people who get on this world are the people who get up and look for the circumstances they want, and if they can’t find them, make them”

Make wiser choices about the thoughts you will allow to enter your mind, as well as the attitude you will bring to your days and they way you will spend the hours of your time. Stop complaining and start living. In the words of the poet Rudyard Kipling “if you can fill the unforgiving minute with sixty seconds’ worth of distance run, yours is the earth and everything that’s in it.”

Live a Life

Its been a long time since my last blog. I have been trying to identify what to post and for a change i have decided to post something different than matters of economy. I have these small thoughts that run in my head which i would like to share with you all.

When movie star Kevin Costner was asked about the ups and downs of his career, he responded with these words “I’m living a life”. I found this reply to be profound. Rather than spending his days judging the events and experiences of his life as either good or bad, he adopted a neutral stance and decided to accept them for what they are a natural part of the path he is on.

We all travel on different routes to our ultimate destinations. For some of us, the path is rockier than for others. But no one reaches the destination without facing some form of hardship. So rather than fight it , why not accept it as the way of life? why not detach yourself from the outcomes and simply experience every circumstance that enters your life to the fullest? Feel the pain and savor the happiness. If you have never visited the valleys, the view from the mountaintop is not as breathtaking. Remember, there are no real failures in life, only results. There are no true tragedies, only lessons. And there are really no problems only opportunities waiting to be recognized as solutions by the person of wisdom.

Where are we heading?

Some say the worst is over, some say the worst is yet, to, come, some say we are nowhere and there are some who say the world is going to end 2012. Ok I am not promoting the movie 2012; I am talking of the current scenario of the economy.

Ok I come back to the same question where are we heading? There is a lot of air filled with optimism saying everything is fine. But how can one say everything is fine when nothing is fine? Ok its confusing right.

Over the past two years or so, I have been closely following the world economy, more so, I have been following the bank policies and actions and as a result GDP and its performance. They say history once not learned, is often repeated. But then, no one likes to learn history. We are humans and bound to make mistakes, but does anyone know what is the mistake that is often repeated ?

Murder, Rape, Doping? None of them. But to forget to use basic sense over greed for money something that has kept on continuing centuries after centuries. In Vatican, on the coins it’s written “money is the root cause of all evil” which is very true.

I being an infant to the world in terms of knowledge of economy and GDP and banking products and practices, I remember this very question which struck me in 2006, when I read an article on subprime, which said the way ahead was Subprime loans. But I asked many this question, if a person can’t pay at lower rates of interest or doesn’t qualify how can they pay this? All gave me answers and kept notion that this kid is dumb and simply arguing. But last year, I guess all understood what I was talking about. In one way, the effect was not as huge as I earlier thought it would be, and that is good in a way, but it did reach to where I thought. So what is that people can’t understand that too much of anything good is bad? Human want is unlimited, which is why they want more and more money.

The big mistake lies in the education system, financial regulators and world leaders who run under the corporate magnets, which recently has slightly changed. I blame the education system for allowing unwanted alphabet soup products of finance creep into the system like CDO’s, Asset Backed Securities (ABS) etc... who wants all these? Ask a common man, and he will say he is not interested. But the person, who knows that this is the way to trick the system and get money, will say it has to continue. But I will debate on this some other time.

But Let me start on the great financial regulators. They think they know everything, in reality nothing. In simple words, they don’t even know what 1+1 is, and the best thing, is that they know what is to be portrayed. Good Public Relations Officers they are.

The role of any good regulator is to ensure they can implement the fiscal and monetary policies they have framed. But where does that happen, it always contradicts or falls in confusion, where it selects the wrong practices over the right one.

Amy good governance would have been able to curb this crisis from their respective end by not having allowed speculative trades take place, put a stop to the subprime loans given, selling of the subprime loans as packages between countries and so on. Yes, USA is the financial capital, doesn’t mean that they are always right. They can also make mistakes. We have to understand the grave situation which we are in now.

I talk of all this for the fact that, the large rate of unemployment luring around, and yet false reporting. As in my previous article, I stated, Stats truly do not reflect the exact situation, what exactly reflects is the feeling you get from the street. Someone once said, you got to be in the field to know what it is like. People on the ground know more than who is sitting in the office. Last week, UK reported the economy has not improved and this week, USA has reported consumer spending is still down, so what does this point? We are no far better from where we are. One thing we all learned from the crisis is that we all are linked and interdependent with all the countries. So if two of major economies in the world are still in deep waters, how come others have swam their way out of trouble? Here comes the answer.

Wait for it.

Wait for it.

They are lying. In a little sense, yes they must have improved from where they were last year, but that is a tiny percentage. Because when two of major economies are struggling, how can others perform? If it so, why people are still unemployed? Why consumer spending is still low?

The bailouts purpose was to allow flow of money in the economy, but in reality it was flow of money from govt. to corporations to pay huge bonuses to their directors as the recent Goldman Sachs story is the best example. Goldman says it’s not our business, to interfere in their matter, but I would like to have a reality check, Boss, your bonus is our money. You’re using tax payer’s money to fill your pockets!! Look at the arrogance of such an institution. Lehman Brothers, once the fourth-largest US investment bank, filed for Chapter 11 bankruptcy protections in the early hours of 15 September 2008. Governments around the world subsequently had to pump trillions into their financial systems through bank bail-outs, central bank actions and huge stimulus plans to save their economies from collapse.

Let’s be true to ourselves, as we know or what it should be that, the world economy is still in bad shape. The figures that are reported are false, it’s just being reported to show that their respective economies is improving in order to create false air of optimism and bring more investment to their economies. This is bad, as I said earlier, History once forgotten; it’s often easy to be repeated. We are making matters more grave, worse, and bringing forth a further troublesome crisis on our hand which can be more damaging, that ,social order can be toppled and there would be clash of people with money and with the people who don’t. It’s an ugly scene to think, but all actions are leading towards there.

The stimulus is producing growth but saying that it’s not “genuine” growth because … it was caused by the stimulus. The basic economic logic says that the stimulus should aim to close the output gap. And it’s obviously not remotely large enough to be doing that right now

But there is now concern that as the banks starts to recover; they have not taken the necessary steps to prevent a repeat of the crisis. Alarm bells should be ringing with the early signs of a 'back to business' attitude in the City and little evidence that policymakers are taking measures to ensure the next economic recovery is better balanced than the last one

But today governments have to work out when - and how - to clean up the mess that those emergency measures have left behind. That could be even more challenging than the crisis itself. Trust me the crisis is not over yet, as it is being reported out by various sections because if it was, you can definitely see the unemployment fall, income increase, value of properties increase and so on.

But realities check nothing is yet over. Maybe yes, we can say we are not in the depression stages, but I would like to say that we are not in it now, because for the simple reason that, in depression policy doesn’t work.

But whatever it is or wherever we are, the poorest countries will still suffer. Even though some big international banks are returning to profit earlier than expected, IMF figures on total unrealized losses on bank balance sheets as a result of the crisis suggest that there is room for plenty more bad news.

Unemployment will remain high across the developed economies, and public debt ratios will continue to rise, even several years into economic recovery

So many actions and very little outcome, why is it so? No fundamental change where it is required has not been taken. As they say vanilla doesn’t cut it anymore, it’s all about what chocolate sauce, whipped cream and cherry you can put on top. So if the world wants to avoid another economic disaster, it has a doubly hard task now.

I have something for the leaders which is can be explained by these lines from theory of deadman -not meant to be song

“There's still time to turn this around
Should we be building this up
Instead of tearing it down
But I keep thinking
Maybe it's too late.
It's like one step forward
And two steps back”

I come back to the same question I started with where are we heading? To a double dip or W- shaped recession / recovery? economy may be improving, but with so many people still searching for work, a return to prosperity looks like a distant dream for many.

Bottom line is that we’re not going back to the good old days without fixing our banks and fundamentals.

A year After the Shock, Challenges Remain

The problem is easy to grasp. The solution is anything but

Just six months ago it seemed quite possible that we were going to find that out the hard way. We still might. But by common agreement, the risk of a global slump on a par with the 1930s has fallen substantially since the start of the year.

The extraordinary policy steps taken by governments and central banks since the Great Panic of September 2008 - the bank bail-outs, the record interest rate cuts, the trillions of dollars in budget stimulus - all of that seems to have worked. At least for now.

But today governments have to work out when - and how - to clean up the mess that those emergency measures have left behind. That could be even more challenging than the crisis itself. Trust me the crisis is not over yet, as it is being reported out by various sections because if it was, you can definitely see the unemployment fall, income increase, value of properties increase and so on.

But a realty check nothing is yet over. Maybe yes, we can say we are not in the depression stages, but I would like to say that we are not in it now, because for the  simple reason that, in depression policy doesn’t work.

GROWTH RETURNS

Its a news that has been capitulating most of the people around the world stating growth has been returning. Yes i agree to that, but growth has not returned back in the US or UK, the countries at the centre of the financial maelstrom, but France, Germany and Japan all supposedly grew in the second quarter of 2009.

Also supposedly China also has grown or bounced back to rapid levels of growth, far quicker than anyone expected at the start of the year among the developing economies.

But whatever it is or wherever we are, the poorest countries will still suffer. But, now we are all in Lehman's anniversary mode, considering the events of the past year, things could surely be looking much worse. The US economy may well have started to grow in the last few months and even the UK will surely not be too far behind is all what i can say supposedly based on the figures out there.

Challenges??

Yes challenges remain which keeps the midnight lamp burning for the ministers, economists, reformists etc.. So then, you might say not much is there, right? Well then you are wrong if your thinking that. Because there is a lot. How and when to start unwinding all of that policy stimulus is the one we hear about most often, but there are two other big ones.

The most important one is the current situation or state of the banks.

Even though some big international banks are returning to profit earlier than expected, IMF figures on total unrealized losses on bank balance sheets as a result of the crisis suggest that there is room for plenty more bad news.

There are particular fears about Continental Europe (notably France and Germany). Officials fear that French and German banks have been allowed to remain in denial about a large chunk of their bad assets. Ministers there live in dread of new requests for expensive help.

Even where governments have engaged in extensive stress-testing to ensure that banks have enough capital to survive (as in the US and the UK), the big worry is that they still have too much debt - and too little capital - to want to lend. And we all know, what it means when there is too much of debt and less capital. Very bad combination. An ideal self destruction tool in itself.

Savings?

Very important parameters used by economist in order to find the growth of the economy. A big worry is that not enough is being done to lay the foundations for more balanced global growth. Personal saving in the US is now about 5% of gross domestic product (GDP) - up from roughly zero last year.

To get its house in order, the US needs saving to remain at least that high, so the US can stop building up mountains of foreign debt.That is only consistent with rapid global growth if other countries step up to the plate, and promote domestic demand in their own countries as an alternative to exporting to the US.

Savings is an integral part for the development of the economy. Earlier it used to be an exclusive feature of the developed economies where they had good saving and income. But now all have come to par with rest of the world.

Most countries really need to focus on generating domestically generated demand, but I guess that is still a difficult task and it is difficult to predict how and when the commitment will bear the fruit.

If there is no rebalancing of growth in favour of domestic demand in "saver" economies such as China and Germany, there will almost certainly not be enough growth. It is as simple as that.

Unemployment will remain high across the developed economies, and public debt ratios will continue to rise, even several years into economic recovery

having said all, one thing is sure in my point of view. You cant expect the domestic demand to grow when unemployment rates keeps on growing,  as a result neither savings will increase, neither there will be any disposable income in the hands of people. So my question is how come all are reporting everything is improving, worst is over? we are at end of recession and all? I think it might be for the company’s who got the bailout money, because so far that has not yet been transformed to the common man.

I am person who don't take statistics into account because a fundamental reason is that it can be manipulated. When you jolt down all the dots saying GDP is growing, I don't get it? Because 1/5th of your GDP is always linked with consumption. So when your unemployment rate increases, people don’t have much money to spend and simultaneously they are not earning. SO then people will reduce spending and spend on essential commodities. When GDP is closely linked with consumption and that pattern is downwards how can one say its over? And moreover if you look the unemployment rate, it’s classically the same as one described in text books for DEPRESSION.  I still feel we are no where better than last year, but a little improvement is there with the false air of information passing around the world. But if you really want to really know if anything has improved, then I suggest go and ask the common man on the street and you will get your answer.

As i said in the beginning , The problem is easy to grasp. The solution is anything but

Overall A Break-Even Budget

It has been a long day of reviewing the budget by several individuals around India and the World. The Union Budget of India 2009-10 is in many ways playing through the traditional in-roads that have been established and taught in our Economics classes. I have been seeing lot of review of the budget and all seem to have given thumbs down for the budget except a few. Moreover, the media anchors who are supposed to be playing role of moderator when the guest comes seems to be fueling the problem by sedimenting a complete negative notion of the budget in the minds of the people.

Well if you ask me, I say the budget is fine balanced and in all sense it is a break even budget where there is no profit no loss in a literal sense. The budget covered several aspects of the economy considering the economic scenario. When I was listening to most of the comments people had to say, it gave me a complete notion that people are thinking only of their own benefit. I saw NDTV and was shocked to see Pranoy Roy who I have huge respect for seemed to be angered in every sense. But I would like to suggest all his guests and Pranoy who were speaking against the budget that most of you are not thinking from a Macro-Economic perspective. It's a complicated topic and area, but has almost a definite answer and 99.99% achievable solution.

First of all, a hue and cry why not disinvesting loss making sector by the government? All of you on TV screens were screaming money should be flowing in the economy so reduce taxes,allow private sector etc… But what about the people employed over there? During this recessionary period it is very important, to not dismiss people especially by the government. Because these people are having their jobs, they earn some income and this would be spent. Only then, expenditure of one becomes the income of another, and if you want government to sell off and give it to private sector who would implement firing of people who exceed the surplus requirement, then I would like an answer from all sitting and saying where would you give these people money? How can they spend when they don't have money? Where flow of money takes place in the economy? A coin has two sides. We have to look both the sides before giving a verdict simply against the government. So I give thumbs up for this move especially when the unemployment is around 6 % and not further aggravating the problem.

Secondly, disinvestment of 10 % is not enough? There is a common say in economics which says human wants are unlimited and always dissatisfied. Also there is another quote which we hear always,we have a problem with whatever is told or given. We have to understand the budget is now for these 9 months before the next one comes. Having said that, what is wrong with 10% disinvestment? In a way government is taking a bigger risk by losing 10% of profit making companies if it goes to private sector because they are losing the profits they can earn and use. I don't need to cite examples of private sectors profit oriented techniques that led to closure or insolvency of many companies and economic downturn round the world. This topic you look anyway can give you any argument. But I think its more than enough 10% disinvestment.

Thirdly, taxes are areas where government earns revenue and the corporate sector can't cry on not reducing the taxes or argue of perquisites being taxed. See for one thing, the corporate sector never pays the correct amount of tax to the government. They manipulate the books and accordingly pay the tax. If the government would get the tax that is lost through book rigging, I guess there would be substantial amount to fund many, many more schemes importantly. And when the government can't receive their revenue properly, why should they reduce the tax? Because whatever may come, the corporate sector has made sure they will continue to manipulate their books. So my suggestions are that corporate pay correct amount of taxes to the government and then only start blaming government. Until then, please maintain silence

Nextly, government expenditure on infrastructure is very important and a very good one. Because this again improves the standards in India on one hand and on the other ensures flow of money in the economy. When a country has good infrastructure there is chance of attracting others into the economy . There was a huge cry saying private sector has not got any chance of growth or they have been put aside. For a simple fact, the government is not going to be doing the infrastructure projects by themselves. They would call for tenders where all parties would be welcomed to participate and the best one would be selected. So please to all ignorant out there, remember not to forget the private sector has huge opportunity out there and if they do quality work, they would be rewarded.

And indirectly most of the people have problem of the governments stand on rural programs undertaken. People wearing suits on TV screens speak a lot of rural development, but in reality it's a complete lie. They don't care. They are interested in their sector and areas improving than the entire country. Most of the hosts and guests didn't say its bad, but they were using the phrase BUT, OR etc… it doesn't require rocket science to understand their displeasure. For once I see government doing something good for the rural people and I would be the first one to congratulate the government with all my heart if they implement it without any delay. If this becomes successful, we can say atleast the poor are not being poorer or not looked after. And for an award,atleast Congress is keeping upto the promise of the election to take care of the aam admi who elected them .

There are several more things I would like to add, but due to constraints I am not going to prolong it anymore. One thing we should understand that we should not compare the Economic Survey with the budget. That was just a survey giving its suggestions. If you say everything has to be implemented suggested by it, then I would like the corporate sector and the media to implement all the suggestions without any failure given by any of their employees. We have to understand there would be screening and different areas to consider before preparing the budget.

Moreover, budget is just a budget; there would be several other measures and reforms taken by the government in due course of time without just looking into the budget. For once, all out there, please keep confidence in Prime Minister Manmohan Singh for he has sufficient knowledge of what decisions are to be taken when the need comes. The government would keep on implementing several policies in the coming days and months.

Finally to all people who are blindly believing the media, a caution- they speak for their interest and for people who promote their shows. If not, they would have been able to protect your investments because they knew the economic downturn and which stocks are doing bad. Because most of us blindly follow them, they tried to pass on wrong information. This was recently exposed by Jon stewart of The daily show exposing and making Jim Cramer of CNBC come out and tell the truth on his show. Google it , you will find the videos and articles. I feel media should report like Jon Stewart.

TO all out there,if you look at an individual point of you, as an individual nothing much of benefit would be there. But atleast, start to be happy for the fact it is considered at aiming at reducing gap between the rich and poor. We always tell kids, to share and help others and support others to grow. If we are not going to stick to our words, then please don't tell all these lies.

Overall a break-even budeget. Further review in due course of time. So stay connected…