Predictions and Investment Analysts

Economists are much better. They don't claim to predict future. They study different scenarios, conjure interesting theories and see if they can help the world grow.

Investment analysts on the other hand - no one knows what they do. They have complicated formulas, jazzy excel spreadsheets, floating tickers and they issue some advise. Most often arbitrarily is my guess.

Look at this Merrill Lynch statement. We all know that the markets are down and future is uncertain. So what is so great about ML making a comment about a gloomy future?

Why is that these overpaid highly greedy super egoistic investment analysts not able to predict the bubble bursting? Or the fact that their loans and their own instruments will go under?

Why is that Merill, which is predicting grave market scenario for next 12 months, not able to predict that it itself was en route to its grave?

Stop it Merill. You got Lynched.

Stop it Merrill. You got Lynched

I couldn't control my laughter when I read this - Buy ICICI, Target 1010, advises ML .

Come on Merill. Stop advising people now. You have been bought. You have been shamed in public. And all smart egoistic investment bankers of Merill - THANKS for the comments, but we know better.

Wall Street Crisis and Why Financial Institutions Deserve this

Let me first start by assuring you that I am not a sadist. It is not good to see age old institutions crumble. It is definitely not good to see investors lose out millions of $$$ when such a crisis hits the street. But it is important to realize that it is the same set of greedy investors and limited-vision top-management that have caused downfalls of esteemed financial institutions.

The success of capitalism lies in the concept of wealth-creation. Remember that wealth creation refers to society in general. And this leads to betterment of lives of people. However financial institutions and greedy investors have read the text completely wrong. All they have managed to do is to just recycle wealth smartly.

And while taking someone else's wealth at the pretext of expanding it, the financial institutions have managed to keep a larger cut for themselves. As they ran out of ideas on this and the greedy investors pushed these companies to show increased growth every quarter, the companies hired brains from top schools, made them think like Shylocks and finally ended up innovating on stuff like sub-prime lending and reverse mortagages. In India, we have had similar innovations on sub-prime credit cards, unasked personal loans and improperly checked home loans.

The middle class, which is cursed to be a loser in every game, fell for this trap as usual. All these financial institutions have done is to suck blood of these unsuspecting middle class. When the loose foundation begins to crumble, these companies have no option but to cave in. Lehman, Merril Lynch, Bear Sterns, AIG - all are nothing but a failure in their own greed.. And with this downfall, they will take their greedy investors and unfortunately dependent industries and whole economy with them.

In India, good institutions like ICICI are also moving towards innovating on this sector. What everyone has to remember that success of institutions and economy & capitalism come by wealth-creation, not by robbing middle class and the like. I really hope that ICICI, HDFC etc.,
take good lessons from these fallen US giants. And IIMs and other institutions should stop teaching their students to be money bloodsuckers and instead show them the right way to make good growth.

And yeah, the rhetoric. The middle class should learn. After depression, sub prime, recessions, chit-funds, Harshad Mehta scandals, credit card payment issues etc., it is time to realize that only hard earned money and smart investments will sustain.