wiseman

Dear Arin,

Yes I got the answer. Of course, I was in no way doubting the report by yourself or anyone else .

But please note that it still remains a rumor with no statement by the company OR the recipient of the payment. Officially, that is. Although one may argue that the public is already so disgusted by all thats happening that they would rather believe the rumor than the officials. So, importantly, the damage is done with companies like Purva, etc crashing so badly.

People must have thought me completely MAD a few months ago when I started talking about 50% - 80% fall. But that is where the value is (its not definitely in talking big about how prices will keep on going up forever)!

The terrible crash in stocks yesterday (1075 points on Sensex on a base of 9750 is HUGE in percentage terms) is again an indicator of where the market thinks the real economy will be 6 months down the line.

2 days back Nandan Nilekani (who is otherwise a quiet, unassuming achiever) came up with a statement that he will repent having said later on. He said that Indian IT will not see any pink slips. Imagine, he is saying this when we already know of pink slips being given clandestinely in the form of non-performance (NP). I get it. Infosys is changing the color of the slip to blue (the mood of the market now) and maybe black later when market mood reaches there)!!!

To this my question is, if so many people were non-performing, then shouldn't you be sacking the managers and HR staff who hired all these NPs and paying them huge salaries for these years without knowing they were NPs? Wh is incompetent here? The NPs who were hired OR the management which hired them? This is nothing but pure opportunism and use-and-throw culture.

Today DLF chairman says that many fly-by-night operators will go out of business. One must be careful about what they say in these fearful times, lest it come back to bite them!!!

The building crash in Bangalore is characteristic of the fact that the business cycle is turning. Now whether justified or not, you will find people concentrating on the BAD news more than the good, just like they focused on good news during bullish times. Human nature.

This gives us an opportunity - at least people like me, who saw it coming, refrained from buying OR selling when prices werre high. We wait for the huge drops and when bottom is reached, maybe buy the 5 crore property for only 1 crore. And see it go back to 5 crore in only a few years later?

More gyan as things develop.

cheers