Saturday, July 26, 2008

Hi from New York

It's almost going to be a week when I landed here in NY.Time runs faster then one can imagine ....Tall buildings busy streets is what you can see in this beautiful city all day long..The first impression of this city was very cold to me specially when I compare it with London...
London didn't had that many tall buildings but surely had a royal look attached to it.
I am staying in Secaucus New Jersey which is very near from NY......Hotel is pretty nice but again you won't find much to see around from there...Has a theatre and some eating joints right across the street but general stores are yet to be seen.....
I am trying to get used to this busy yet lonely life in this city...I feel people are much more lonely here then in India.One reason may be they don't like to mingle that much...
I find it pretty unusual the way words like F$@% Bi#$% etc are used in office during normal conversation or in meeting rooms......
Well all in all I am finding it interesting to know a new culture and way of life..
Will write some thing interesting in my next post.

Tuesday, July 15, 2008

How much we need?

After seeing todays Fall..I think its time to relax and leave market behind for a while..On the same lines here is a small and interesting story..

A boat docked in a tiny Goan village. A tourist from Mumbai complimented the Goan fisherman on the quality of his fish and asked how long it took him to catch them.
'Not very long,' answered the fisherman.But then, why didn't you stay out longer and catch more?' asked the Mumbaite.The Goan fisherman explained that his small catch was sufficient to meet his needs and those of his family. The Mumbaite asked, 'But what do you do with the rest of your time?''I sleep late, fish a little, play with my children, and take a siesta with my wife. In the evenings, I go into the village to see my friends, play guitar, sing a few songs... I have a full life.'The Mumbaite interrupted, 'I have an MBA from IIM-A, and I can help you! You should start by fishing longer every day. You can then sell the extra fish you catch. With the extra revenue, you can buy a bigger boat.''And after that?' asked the Goan.'With the extra money the larger boat will bring, you can buy a second one and a third one and so on until you have an entire fleet of trawlers. Instead of selling your fish to a middle man, you can then negotiate directly with the processing plants and maybe even open your own plant. You can then leave this little village and move to Panjim, or even Mumbai. From there you can direct your huge new enterprise.''How long would that take?' asked the Goan.'Twenty, perhaps twenty-five years,' replied the Mumbaite.And after that?''Afterwards? Well my Friend, That's when it gets really interesting,' chuckled the MBA valla, 'When your business gets really big, you can start selling stocks and make millions!' 'Millions? Really? And after that?' asked the Goan.'After that you'll be able to retire, relax and do whatever you fancy!!!!!!!!!!!!!!!!!!!!!!!! 'You really are an idiot, aren't you? isn't that exactly what I am doing now?????????????????????????????????????????????????????

Monday, July 14, 2008

Will this control Inflation

man eats two eggs each morning for breakfast. When he goes to the Kirana store he pays Rs. 12 a dozen. Since a dozen eggs won't last a week he normally buys two dozens at a time. One day while buying eggs he notices that the price has risen to Rs. 16. The next time he buys groceries, eggs are Rs. 22 a dozen. When asked to explain the price of eggs the store owner says, "The price has gone up and I have to raise my price accordingly". This store buys 100 dozen eggs a day. He checked around for a better price and all the distributors have raised their prices. The distributors have begun to buy from the huge egg farms. The small egg farms have been driven out of business. The huge egg farms sell 100,000 dozen eggs a day to distributors. With no competition, they can set the price as they see fit. The distributors then have to raise their prices to the grocery stores. And on and on and on. As the man kept buying eggs the price kept going up. He saw the big egg trucks delivering 100 dozen eggs each day. Nothing changed there. He checked out the huge egg farms and found they were selling 100,000 dozen eggs to the distributors daily. Nothing had changed but the price of eggs. Then week before Diwali the price of eggs shot up to Rs. 40 a dozen. Again he asked the grocery owner why and was told, "Cakes and baking for the holiday". The huge egg farmers know there will be a lot of baking going on and more eggs will be used. Hence, the price of eggs goes up. Expect the same thing at Christmas and other times when family cooking, baking, etc. happen. This pattern continues until the price of eggs is Rs. 60 a dozen. The man says, " There must be something we can do about the price of eggs". He starts talking to all the people in his town and they decide to stop buying eggs. This didn't work because everyone needed eggs. Finally, the man suggested only buying what you need. He ate 2 eggs a day. On the way home from work he would stop at the grocery and buy two eggs. Everyone in town started buying 2 or 3 eggs a day. The grocery store owner began complaining that he had too many eggs in his cooler. He told the distributor that he didn't need any eggs. Maybe wouldn't need any all week. The distributor had eggs piling up at his warehouse. He told the huge egg farms that he didn't have any room for eggs would not need any for at least two weeks. At the egg farm, the chickens just kept on laying eggs. To relieve the pressure, the huge egg farm told the distributor that they could buy the eggs at a lower price. The distributor said, " I don't have the room for the %$&^*&% eggs even if they were free". The distributor told the grocery store owner that he would lower the price of the eggs if the store would start buyingagain. The grocery store owner said, "I don't have room for more eggs. The customers are only buying 2 or 3 eggs at a time. Now if you were to drop the price of eggs back down to the original price, the customerswould start buying by the dozen again". The distributors sent that proposal to the huge egg farmers but the egg farmers liked the price they were getting for their eggs but, those chickens just kept on laying. Finally, the egg farmers lowered theprice of their eggs. But only a few paisa. The customers still bought 2 or 3 eggs at a time. They said, "when the price of eggs gets down to where it was before, we will start buying by the dozen." Slowly the price of eggs started dropping. The distributors had to slash their prices to make room for the eggs coming from the egg farmers. The egg farmers cut their prices because the distributors wouldn't buy at a higher price than they were selling eggs for. Anyway, they had full warehouses and wouldn't need eggs for quite a while. And those chickens kept on laying. Eventually, the egg farmers cut their prices because they were throwing away eggs they couldn't sell. The distributors started buying again because the eggs were priced to where the stores could afford to sell them at the lower price. And the customers starting buying by the dozen again. Now, transpose this analogy to the gasoline industry. What if everyone only bought Rs 200.00 worth of Petrol each time they pulled to the pump? The dealer's tanks would stay semi full all the time. The dealers wouldn't have room for the gas coming from the huge tanks. The tank farms wouldn't have room for the petrol coming from the refining plants. And the refining plants wouldn't have room for the oil being off loaded from the huge tankers coming from the oil fiends. Just Rs 200.00 each time you buy gas. Don't fill up the tank of your car. You may have to stop for gas twice a week, but the price should come down. Think about it. Also, don't buy anything else at the fuel station; don't give them any more of your hard earned money than what you spend on gas, until the prices come down..."
...just think of this concept for a while.