Recession and Us!!!!

[dreamcatcher]

As we all know, over these few months the share market has taken a tumble and the international market is heading an all time low. Liquidity has come down to the bare minimum and companies have been going through huge losses, thereby falling back to the much proven lay-off policy. Wide players such as Citibank and others have handed over the pink slip to more than 50 thousand employees, the automobile industry is in need of instant backup and property prices are falling by the second.

The value of rupee has touched its breakthrough level, resulting in lack of imports and huge transpher of hard cash from NRI's wo find this as an oppurtunity to break into the Indian market and make hay of the increased value of dollars. The commodity market has gone up owing to more people investing in gold and diamonds due to fall in share prices. The demands for diamond however has depreciated consderably and a "no-import" sanction has been made till the 31st of december.The people involved in the polishing industry have been sent on a 2 month min-wage leave without prior notice


And as we move on the IT sector, life seems gloomier than usual. In kolkata, the students who had been recruited on-campus have been rrestraint to joins and are have been told to wait out. Joining may start as late as 2012 without any guarantee of recruitment. Outsourcing has decreased considerably and most workers are now found searching for jobs in the service sector.

So, how has the global recession affected you?? How are dealing with it?? Any ideas on whether we see an upward rally any time soon?? coz over the past few days, its hardly been an upward glance in the share market.

[Faun]

Recession and US

[freshseasons]

This Recession has taken up a heavy chunk out of all the Mutual Fund investments i did.All my share market friends are on the verge of bankruptcy.
Every second person that i know is either losing job.How does it affect me ?
Well people dont got money as much they had before for hanging out in coffee shops.If at all we go out the burden is usually taken by my purse with is now more fragile after the recession.To have them put the money for Coffee bill is almost as good as strangling them.
I have been lending money right and left.And losing friends in return.Well some of them anyways i dont mind.
This December no Foreign tour for me.Believe me as a compulsive traveler this is a huge hit for me.Bye bye world.
Yes even my morality has taken a hit as i am heavily into movie torrents downloading as i can always use the money to loan friends rather than visiting Multiplex cinema hall.

[mehra.rakesh]

Well Mr.DreamCatcher :: Let me ask u this ,, How has the recession afectd u ?

Assuming u invest in stocks and that u had the SAFEST (wrt P/E) portfolio possible ur notional losses can be 1000% or a 1000000.....% but ur actual investments wud be down not more than 25% from Jan-March . but if not i wud give all ur money back in exchange for the portfolio .. and If u invested in cos like Reliance Power , DLF just because of hype then u have no one but urself to blame....
AFAIK no indian has lost any money in any bank... except for teh crappy thugs @ ICICI bank but that was not because of the crisis ...
The prices of commodities like metals etc went down from the astronomical highs but did it affect ur budget in anyway ??? Have u stopped watching movies ,, or eating out with friends ,boyfrnd/girlfrnd coz of recession .. Prices of vegs,oils, wheat shot up but have u stopped eating ?? Did u do cost cutting this festive season coz of recession ??

Originally Posted by dreamcatcher

Liquidity has come down to the bare minimum and companies have been going through huge losses

. Liquidity problem is artificial as the banks are clinging on to their money . Losses -- Yes, the profits are down but HUGE losses due to crisis .... ??!!?? ...

Originally Posted by dreamcatcher

thereby falling back to the much proven lay-off policy.

U mean the never proven & never successful policy except in case for government like cos whose employees tend to be lethargic , inefficient , & pathetic and generally have a very phat employee strength and have a very active and vociferous labour union .. Plus many cos r using the recession as an excuse to fire employees ....

Originally Posted by dreamcatcher

The value of rupee has touched its breakthrough level, resulting in lack of imports and huge transpher of hard cash from NRI's wo find this as an oppurtunity to break into the Indian market and make hay of the increased value of dollars.

If NRI's are pouring dollars into a market which has seen a huge outflow of dollars then it must be good right ? well the gov seems to think so too and it also raised the rates on NRI deposits recently .AND HOW THE FCK DOES WEAK RUPEE LEADS TO LACK OF IMPORTS ??!! .

And as we move on the IT sector, life seems gloomier than usual. In kolkata, the students who had been recruited on-campus have been rrestraint to joins and are have been told to
wait out. Joining may start as late as 2012 without any guarantee of recruitment.

If u have heard of Tech Mahindra , Infosys , Wipro .. they have done so for many recruits even pre 2007-08 when the indian economy was overheating .. And BTW I wud be really interested to know which company r u talking about ..

Outsourcing has decreased considerably and most workers are now found searching for jobs in the service sector.

WTF already ??? Even witout d industry coming out with any numbers ... Do u have anything to prove this ??????

Technically Recession is defined as the sharp & widespread contractions in all sectors of the economy for atleast two quarters resulting in a significant decline of the GDP ....
And trust me .. the actual RECESSION in india so to say will be very very bad and it is yet to hit us ....

[dreamcatcher]

Well, it can in now way affect me, coz am just a 19 year old. I was talking of how businessmen have been affected. As you may know, there are people who have bought stocks in excess of crores and all their money have gone crashing down the drain. Now as the stocks kept falling, most people thought that the sensex would go up and thereby tried to balance their losses by buying more stock at the reduced price.Now, i dunno, maybe 20 lakhs or more do not matter to you, but there are people in India and outskirts who live on investing and are more prone to invest than to save.I have heard of bankrupcy cases.

Yea, i mean losses in the sense of growth.Look it in this perspective. A company which had monitored a growth of 20% this year, goes on extending itself and spends billions of money on expansions and staff recruitment. Now, as the crisis hits, profits come down and as a result of which companies suffer losses in the overall funding of the firm.As you may know, theres hardly a business group which keeps money as backup but invests as it profits. Now work it out.

Well, the lay-off policy have been tried, tested and has hit off well in many parts. I know it affects the company in the long run and i was referring to it sarcastically, but it has been going on for quite a long time now. The major dock of the crisis is the magnitude in which people are losing jobs. Unnecessary or not, the people who lose their jobs have the crisis to blame.

Cummon, now, imports have decresed considerably. Now take for example oil. What happened?? Price of petrol is down to 50 dollars a barrel. In Jan 2008, dollar was 39.42 ruppess compared to the present value of 50.20. Now, if the price of oil had decreased then, we would have had a barrell for (40*50)=2000 bucks., while we get it for 3000 bucks now. As a result, its hard for the governemnt to lower pices, and more so coz the oil companies had lost a large chunk of money through losses. Imports in the private sector have decrased in the sense that the price of imported goods hve gone up considerably and people hardly buy any.Since they bought the same item 6 months back at half the price.Look at the diamond industry, it has stopped imports till 31st december.


Infy,etc blah blah, have recruited lots in the preceding season, but can you give me a clear idea as to how many have been called to join??here in kolkata atleast, its a grim senario.

Okay the outsourcing part was a bit of an exaggeration.