Will we never learn?

  Just a few months ago i wrote a blogpost about  such  Ponzi schemes .
 I  blame  the investors  equally as the  perptrators of  such schemes
 if  the  returns are too good to be  true  then  they  are  not  true  and  do not invest in such schemes.

New Delhi: The Central Bureau of Investigation (CBI) has arrested three directors of two ponzi companies in separate cases of allegedly duping people to the tune of over Rs. 620 crore.

In the first case against Infinity Realcon, the CBI has arrested its directors Pranab Mukherjee and Prabir Kumar Mukherjee for allegedly duping the people through lucrative ponzi schemes.

"It was alleged that the accused, in a criminal conspiracy with others, had illegally collected Rs 565 crore from poor investors after fraudulently promising them high returns without any permission from regulatory bodies. In pursuance of that, they allegedly committed cheating and criminal misappropriation of public funds," CBI Spokesperson said.

In a separate case, CBI has arrested Sankar Saha, then Director of PAFL Industries Ltd, a Kolkata-based company.

CBI spokesperson said Saha allegedly collected Rs 60 crore illegally from gullible investors after promising lucrative rates of interest on their deposits.

"They allegedly committed cheating and criminal misappropriation of public funds," she said.

The cases were registered by the agency on the orders of Supreme Court on May 09, 2014 passed against the officials of said private companies.

People ran their public corporations into bankruptcy,were saved from bankruptcy by the United States government

The line between gambling and investing is artificial and thin. The soundest investment has the defining trait of a bet (you losing all of your money in hopes of making a bit more), and the wildest speculation has the salient characteristic of an investment (you might get your money back with interest). Maybe the best definition of "investing" is "gambling with the odds in your favor." The people on the short side of the subprime mortgage market had gambled with the odds in their favor. The people on the other side--the entire financial system, essentially--had gambled with the odds against them. Up to this point, the story of the big short could not be simpler. What's strange and complicated about it, however, is that pretty much all the important people on both sides of the gamble left the table rich. Steve Eisman and Michael Burry and the young men at Cornwall Capital each made tens of millions of dollars for themselves, of course. Greg Lippmann was paid $47 million in 2007, although $24 million of it was in restricted stock that he could not collect unless he hung around Deutsche Bank for a few more years. But all of these people had been right; they'd been on the winning end of the bet. Wing Chau's CDO managing business went bust, but he, too, left with tens of millions of dollars--and had the nerve to attempt to create a business that would buy up, cheaply, the very same subprime mortgage bonds in which he had lost billions of dollars' worth of other people's money. Howie Hubler lost more money than any single trader in the history of Wall Street--and yet he was permitted to keep the tens of millions of dollars he had made. The CEOs of every major Wall Street firm were also on the wrong end of the gamble. All of them, without exception, either ran their public corporations into bankruptcy or were saved from bankruptcy by the United States government. They all got rich, too. 

ANANDAN what is research

Speaking about research as an activity “driven by curiosity to work on a problem that may not benefit anyone today or tomorrow, but needs to be done,” Dr. Anandan emphasised on the need for researchers to work towards success and not “lead to nothingness.”

“In research, you can think without constraint, but think about real things,” he said.

But he mentioned how less than 1,000 engineers sign up for Ph.D programmes every year in India.

“We simply do not have enough people going into research. The quality of research is also better in the U.S. and even in China. But Indian research is stronger in chemistry and math, and to an extent in physics and biology,” he said.

ENGINEERING EDUCATION

He told the engineering seat aspirants that the course prepares them to do three things: technical engineering, basic researching and entrepreneurship. “A solid professional education can help you be an expert, explorer and entrepreneur,” he added.

ON JOBS

Dr. Anandan begged to differ on the usual perception of jobs. “A job has many negative connotations such as something routine, bound to do, and what you are being paid to do, and not about discovering the true potential.

Sorry !!! we have encountered an error. Please try again After sometime. TDIL

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http://ocr.tdil-dc.gov.in/(S(iar4x5xpxukvdqjgzsl5a54d))/ocrerror.aspx?aspxerrorpath=/contactus.aspx

 status of indian regional language software at TIDL

It is such a shame  that   for a country  which boasts as the  software capital of the  world  the  so called  research websites are so poorly designed and maintained 

what are shares and corporations what is the contribution of India

One of the  four major divisions of  Indian population  from ancient times was the  businessman .SrEshTi or SeTTI  which in northern hindi morphed in to S'ET.
 usually theses people depended on family and  friends or their own accumulated wealth to  buy goods and sell them for a profit;
 when  they  did not have  enough money they went to a bigger sET and  borrowed money to run  their business. This loan was charged an interest  ( simple/ maamulu vaDDI, compounded ,chakra vaDDi)
this is  called vaDDi in south india and mitti in North.
 there were partnerships in business from  a very long time  but the  idea  of  a  bunch of people  coming together  and  pooling their money  and keeping  a few among themselves  in charge of day to day affairs  and  just having a  part owner ship  uniquely started  with  East India company .

I do not know if such a thing existed in some form in ancient Inda.

hunDi;

A hundi is a financial instrument that developed in Medieval India for use in trade and credit transactions. Hundis are used as a form of remittance instrument to transfer money from place to place, as a form of credit instrument or IOU to borrow money and as a bill of exchange in trade transactions. The Reserve Bank of India describes the Hundi as "an unconditional order in writing made by a person directing another to pay a certain sum of money to a person named in the order."^[1] The operation of the Hundi system has many parallels with the Hawala system also widely used in Africa, India and the Middle East

Hawala  has become  a dirty word recently but  this is a system  which was used by the  Indian merchants for  number of decades susccessfully.

Businesses of course, have been around for a while. The oldest continuously surviving business, until recently, was Kongo Gumi, a Japanese temple construction business founded in 584 AD that finally closed its doors in 2009. Guilds and banks have existed since the 16th century. Trading merchants, who raised capital to fund individual ships or voyages, often with some royal patronage, were also not a new phenomenon.  What was new was the idea of a publicly traded joint-stock corporation, an entity with rights similar to those of states and individuals, with limited liability and significant autonomy (even in its earliest days, when corporations were formed for defined periods of time by royal charter).
one of the  four major divisions  of  Indian population  from  ancient times  was the  business man   .SrEshTi or SeTTI   which in  northern hindi  morphed in to  S'ET 

 Difference between profit and  equity



Best Answer:  Profit is income, less the cost of producing the income.
Equity is assets minus liabilities. This is the value of what the owner actually owns.
Profit increases equity. Additional investment also increases equity.
STEVEN F ·

Equity is your actual worth in something. So if you have a house that has a value of $200,000, but your mortgage is $100k, then your equity in the house will also be $100k.
If you bought the house at $150k, and it is now $200k, then you have made $50k profit.

Atlantis


Equity is ownership. For example, if you put $20,000 down on a $100,000 business, you have 20% equity. Profit is money made after expenses are taken out of gross sales

.Andrew

share  stock
common stock preferred stock

one of the equal parts into which a company's capital is divided, entitling the holder to a proportion of the profits.

What are 'Preference Shares'

Preference shares, more commonly referred to as preferred stock, are shares of a company’s stock with dividends that are paid out to shareholders before common stock dividends are issued. If the company enters bankruptcy, the shareholders with preferred stock are entitled to be paid from company assets first. Most preference shares have a fixed dividend, while common stocks generally do not. Preferred stock shareholders also typically do not hold any voting rights, but common shareholders usually do.

BREAKING DOWN 'Preference Shares'

Types of Preference Shares

There are four types of preference shares:

Cumulative preferred stock includes a provision that requires the company to pay preferred shareholders all dividends, including those that were omitted in the past, before the common shareholders are able to receive their dividend payments.

Non-cumulative preferred stock does not issue any omitted or unpaid dividends. If the company chooses not to pay dividends in any given year, the shareholders of the non-cumulative preferred stock have no right or power to claim such forgone dividends at any time in the future.

Participating preferred stock provides its shareholders with the right to be paid dividends in an amount equal to the generally specified rate of preferred dividends plus an additional dividend based on a predetermined condition. This additional dividend is typically designed to be paid out only if the amount of dividends received by common shareholders is greater than a predetermined per-share amount. If the company is liquidated, participating preferred shareholders may also have the right to be paid back the purchasing price of the stock as well as a pro-rata share of remaining proceeds received by common shareholders.

Convertible preferred stock includes an option that allows shareholders to convert their preferred shares into a set number of common shares, generally any time after a pre-established date. Under normal circumstances, convertible preferred shares are exchanged in this way at the shareholder's request. However, a company may have a provision on such shares that allows the shareholders or the issuer to force the issue. How valuable convertible common stocks are is based, ultimately, on how well the common stock performs.

Significance to Investors

Preference shares are an optimal alternative for risk-averse equity investors. Preference shares are typically less volatile than common shares and offer investors a steadier flow of dividends. Also, preference shares are usually callable; the issuer of the shares can redeem them at any time, providing investors with more options than common shares.

Read more: Preference Shares Definition | Investopedia http://www.investopedia.com/terms/p/preference-shares.asp#ixzz4JVmAPMdJ

How do you make poor people feel wealthy when wages are stagnant? You give them cheap loans.

 the Salomon Brothers trading floor gave birth to small markets in bonds funded by all sorts of strange stuff: credit card receivables, aircraft leases, auto loans, health club dues. To invent a new market was only a matter of finding a new asset to hock. The most obvious untapped asset in America was still the home. People with first mortgages had vast amounts of equity locked up in their houses; why shouldn't this untapped equity, too, be securitized?

l. "Growing up in Queens, you very quickly figure out where the money is," said Vinny. "It's in Manhattan."

How do you make poor people feel wealthy when wages are stagnant? You give them cheap loans.


 he became friendly with the Association of Community Organizations for Reform Now (ACORN), which must be the first time a guy from a Wall Street hedge fund exhibited such interest in an organization devoted to guarding the interests of the poor.

now it is with great honor that I introduce today's keynote speaker dr.

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michael burry Michael is one of our own and economics graduate of the class of

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nineteen ninety-three and we are thrilled that he has come back to campus

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to speak today

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he is joined by his wife aunty and his sons Michael and Nicholas his

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brother-in-law John and sister-in-law on men

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Michael was an exceptional undergraduate here at UCLA as if a full course load as

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an econ major wasn't enough he also managed to fulfill rigorous pre-med

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requirements

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after leaving UCLA he proceeded to earn his medical degree at Vanderbilt

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but the drawer of the investment world soon i became his desire to practice

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medicine

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by the time he founded sion capital in two thousand Michael had already earned

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a stellar reputation as an investor with extraordinary vision now about a year

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and a half after the financial crisis hit in  Queen Elizabeth of England

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visited the london school of economics and she asked the distinguished faculty

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there

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why nobody had predicted the financial crisis

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she should have come to UCLA because Michael did he used his vision to

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predict the collapse of America's financial and real estate markets

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he foresaw the failure of companies such as aig Fannie Mae Freddie Mac

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countrywide financial and washington mutual

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you might recognize his story from his profile in Michael Lewis's

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best-selling book the big short

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Michael closed so I on Capitol in  and these days he fund startups and

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invests his own money

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Michael will no doubt have some predictions for all of us in the

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audience today and certainly some prescient words of advice for the class

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of

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I know we will all be inspired by his story and his vision and now it gives me

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great pleasure to welcome the UCLA economics commencement speaker for the

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class of

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dr. michael berry

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well thank you professor farmer class of

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congratulations quite an achievement to graduate from UCLA

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you know it's nice to be back in westwood I certainly have fond memories

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of my time here in many ways the campus is much the same but in some ways I can

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see it's different

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I do know your campus life and much different than mine

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twenty years ago I had no internet no cell no smart phone no cell phone i

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don't think you know what i did invest my summer earnings and stocks and

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futures and I remember being absolutely starved for information

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I had to send away for financial statements

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sometimes waiting weeks for a response and i would take a near daily trip to

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westwood to pick up a wall street journal to check yesterday stock quotes

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today it's much different information swarms us comforts us

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it disrupts us it's an age of infinite distraction for those so willing

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you are the generation that had instant messaging facebook twitter and angry

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birds nagging your fingertips at every moment

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it's been arguably as addictive as any drugs throughout history and I do

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imagine

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it took some terrific will power during your studies to study of course it's not

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lost on anyone that you started your term UCLA in the midst of a global

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financial panic

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the consequences of which are far from settled

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the fault is not your own but the future it leaves certainly is

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as a result of what happened while you were growing up

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you now face the future that will feature either

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another great recession during your twenties ordering your forties a u.s.

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debt to gdp ratio exceeding two hundred percent and that's not me that's the

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Congressional Budget Office me

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I think they're ignoring reflectivity and I think you face both

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now Greece was that one hundred and sixty percent gdp debt-to-gdp when its

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last of its Diane life started running out from my perspective this is all the

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more tragic because the financial meltdown was both predictable and

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preventable

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this was no black swan and no other serendipitous excuse should be

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acceptable to anyone of late

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europe convulsions or in the news even this should not be surprising back in

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two thousand six when a bunch of a shorted portugal italy greece and spain

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we call them the pigs for a reason

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I can explain it in one sentence when the entitled elect themselves the party

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accelerates the brutal hangover is inevitable

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Californians and indeed all Americans ought to take note my career after UCLA

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arced in such a manner that i found myself right in the middle of the

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financial meltdown profiting from it because i had predicted it

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I have been a chicken little or a Cassandra to some especially in

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government

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I'm one lucky sob and truth

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I was just trying to figure it all out from my earliest years

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I found that life for all its amazing possibilities

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very often does not make sense and at least as often is not fair

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today it is absolutely not fair the world you are being dealt

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there are many ways to deal with an unfair world one make tune out drop out

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run away when they get angry when they fight one could do ultimately what I did

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except the world for what it is work hard to exploit the opportunities it

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presents and try to do so it is just a manner as possible

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now there are two kinds of working hard you can work hard you can work smart or

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you can work dumb when I was in sixth grade my dad dumped a pile of bricks in

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the backyard and after school you had us move me my brother's move the bricks to

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the side yard

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the next day he had us moving back to the backyard

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the next day back to the side yard and so forth this continued for quite a

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while

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I'm not sure what he intended by this but I did learn that work hard work for

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hard work sake alone would not do later in observing the tenure system so

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endemic to academic ventures

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I would think that myself hey we're just moving a pile of bricks

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in fact i began to doubt traditional education

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I committed myself to educating myself as opportunities arose

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still as I graduated from UCLA I had a Vanderbilt Medical School and read liars

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poker by michael lewis and it nearly convinced me that even if I could become

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a great money manager

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I shouldn't besides medicine appear just my interest in medicine would fade

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however as the act as I studied economics and regulation of health care

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while in chicago in  the government payer would weigh far too heavily on

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that playing field and I did not think it would be fair enough

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so during medical school I put up a website some ideas on stocks and markets

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as I graduated medical school in  microsoft out of the blue offered me a

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dollar a word to write for the new msn money website being wordy and being in

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debt naturally I said yes so therefore during my medicine internship I wrote for

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microsoft and ran my website there are synergies between two of the three and i

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had unknowingly found a back door to wall street

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none of this was nearly as well planned as it seems in retrospect

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there were a number of crises including a divorce and at one point I was so

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despondent over my direction that I even applied to law school

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again and again I figured as long as I kept asking questions

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working so hard to answer questions I would eventually find my way as I turned

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I ran out of reasons why I couldn't or shouldn't left medicine start an

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investment firm that . the decision became came very easily as perhaps

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should be the case more often than not i simply way the paths before me without

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considering the path on which I had been at sayan capital my job   was to ask

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ask questions and seek answers

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I mostly examined stocks and bonds as long investments but one day I came

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across a sub prime residential mortgage back securities ation and I wondered if

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I could figure out any of that other questions soon followed

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why are home prices diverging up and away from the household income trendline

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answer if it's not income

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it's leverage what exactly are the incentives of lenders that make

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mortgages only to sell them on through the wall street answer

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volume at the expense of credit standards when interest rates bottom

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how far could lenders push mortgage terms in order to keep refinancings home

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prices and loan volumes rising the answer to this question would put a

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ticking timer on the boom and a date on the crash back in two thousand five

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other questions stood out how much is consumer spending dependent on cash out

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refinancing what percentage of jobs are dependent on the assumption of rising

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home prices

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well aig have to start posting massive cash collateral for the first time

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if it were downgraded isn't it worrisome that fannie mae cannot find term sheets

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that describe perfect hedges against its massive mortgage portfolio are the

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rating agencies so conflicted that they could be this blind in my letters to

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investors

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I described the downturn that would be unprecedented know with no counter power

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in the mount in the modern era

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Wall Street's risk models would fall all at once and every single CEO and every

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single politician would be disastrously wrong

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I put my money where my mouth was at its peak of a short eight point four billion

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dollars worth of subprime mortgages and certain financial companies

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the most we could lose was less than  million dollars

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thanks to credit derivatives and at first we did lose it was a negative

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carry trade investors business partners and even employees questions strategy

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lawsuits were threatened our distress was reported in the press and Wall

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Street look to squeeze are short

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besides all this

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I had to stomach what I knew was coming a tragic end to the follies

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this was not fun

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I did not tap dance to work but the firm survived

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we turned the tables on Wall Street and I became the one percent in a way I

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never imagined when I was sitting where you sit today i had bet against America

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and one in  I public published an op-ed in the New York Times posing what

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i thought was a valid question of the Federal Reserve Congress and the

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president

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I saw the crisis coming why did not the Fed never did any member of Congress any

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member of government for that matter

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reach out to me for an open collegial discussion on what went wrong or what

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could be done rather within two weeks

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all six of my defunct funds were audited the Congressional financial crisis

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inquiry commission demanded all my emails and list the people with whom i

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converse going back to two thousand three and a little later the FBI showed

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up a million and legal and accounting costs and thousands of hours of time

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wasted all because

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I asked questions

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it seemed they would pop me at gunpoint or not at all

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that summer the Federal Reserve put out a paper that concluded nothing in the

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field of economics or finance could have predicted what happened with regard to

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the housing bust and subsequent economic fallout

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Ben Bernanke continued ben bernanke continues to backfill this logic and I

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fear that history is being written wrong yet again the ignorance is will full as

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we move forward as a country it is worth considering mainstream economics and

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finance in light of recent events our nation's economic policies are born of a

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synthesis of theory on how to deal with the Great Depression of the s seems

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unable to honestly examine the most recent one

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sadly at the highest levels of economic thought in government questions are not

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tolerated it is as if we are dealing with the binary judgment of a

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fundamentalist religion finance theory and practice fare no better the

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continuing crisis makes a mockery of the principles which have guided credit

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policy and risk management since the nineteen sixties as it turns out

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information is not perfect

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volatility does not define risk markets are not efficient

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the individual is adaptable but the dark ages of Finance allow no such light

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mainstream economist and finance practitioners

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please check your premises

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you have contradictions before you

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truthfully I do not expect much to change

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practically speaking history has demonstrated the ability of sovereign

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nations to justify them themselves and to postpone the moment of crisis

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this will be even more true for the United States is the largest economy by

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far with the strongest central bank as a result over the course of your lives you

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experience withering but stealthy attacks on your quality of life as

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government attempts to manage its faltering finances

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you'll see declines in the quality of healthcare the quality of education the

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quality of public safety and the quality of our currency of course this is a

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false prophecy

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I'm simply describing what is already happening

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class of  by graduating today you are taking a step

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another step on a path that is fairly well worn a path that in and of itself

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defines little about your future

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many have started from where you start today and done great and wonderful

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things but many to have live lives of another sort

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whatever you see is the next obvious step consider whether you're being true

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to yourself

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Your Strengths your weaknesses your needs before you take it

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the next decade or so before you have kids before you get married is the most

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flexible most genius decade of your life

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you ought to consider stepping outside your paradigm to for a fresh look

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now and again if you are considering a career on wall street or in Washington DC

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you should be aware of the social proof that operates there this is that many if not most people

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we'll be doing questionable things that obviously make money and obviously earn

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respect from common peers

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if you find yourself in such a place i would ask you to consider a rule i

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learned as a physician first do no harm

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besides life is not that short life is well and long enough for you to come to

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regret any activity or habit involving exchange of long-term risk for

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short-term benefit

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this is what many if not most Americans did during the refinancing and

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consumption boom of last decade and it was what our government didn't egging on

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the boom

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this is also the gospel of drunk drivers and cheating spouses of course when you

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encounter the opposite the short term risk exchanged for long-term benefit

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consider hitting that button again and again and again

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past maybe prologue but this is not true for the individual the individual can

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think different and the individual can act different than those that got us all

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into this mess

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no matter how the economic tides may sweep away the majority and in India an

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individual can stand clear

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each of your lives

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individually is an epic chance you can leave here today and you can choose to

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never stop learning never to stop asking questions

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I must say it will not be without staggering difficulties there will be

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times when you will stare at yourself in the mirror and wonder why

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but faced with a setback you will be

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most creative under stress you will think better and act stronger

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so much so that looking back it will seem as though it was all meant to be

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thank you and good luck