'Say no to Bangalore and yes to Buffalo,' seems to be the latest mantra of US President ="http://connect.in.com/profile/Barack_Obama/795"]Barack Obama

]http://ibnlive.in.com/news/obama-bailout-say-no-to-bangalore-yes-to-buffalo/91807-2.html
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  • Dear friend,

    This is nothing unexpected. It is sooner than expected. More negative things for NRIs can be expected to follow from this gentleman. He should not forget the support extended by the NRIs from US during his days prior to the election. But what can he do now? Under such conditions like increasing unemployment, economy downtrend, he will have to keep the Americans happy and satisfied that he is trying to do something for them.

    ks2071746
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  • I know it came sooner but people were hoping that he wont touch this after the election is over but he kept his word...
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  • This is actually good for Bangalore

    Obama has removed tax incentives for American companies which create jobs in Bangalore ( or outside america).

    Actually he has taken one step furthur to ruining his own America's competitiveness.

    If Microsoft shifts its headquarters to Beijing or Dubai or New Delhi, it will no longer be an american company. Microsoft will be welcomed with red carpet by any of these Asian countries, complete tax incentives will be provided to them. What's more Microsoft will get best brains in India, China and Middle East for a competitive cost.

    So this is actually good news for us, and counter productive for america in long run.
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  • i dont understand how come it will benefit us,if microsoft does that it will loose his market share,how many people in india and china would have bought the original XP or VISTA from Microsoft.where as in US each and every household will have all the original s not pirated.thats the power of americans,no people can match the spending power of americans
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  • Will they shift?

    Originally Posted by contra
    Obama has removed tax incentives for American companies which create jobs in Bangalore ( or outside america).

    Actually he has taken one step furthur to ruining his own America's competitiveness.

    If Microsoft shifts its headquarters to Beijing or Dubai or New Delhi, it will no longer be an american company. Microsoft will be welcomed with red carpet by any of these Asian countries, complete tax incentives will be provided to them. What's more Microsoft will get best brains in India, China and Middle East for a competitive cost.

    So this is actually good news for us, and counter productive for america in long run.



    Folks,

    In the old days our father's generation laid excessive focus on tax savings probably leading to big misses in opportunities. Those were the days with focus on saving every grain even if it meant losing much bigger amounts of grain by not planting! :D

    The question here is, will large American companies leave behind their essential Americanism, with all the advantages that go with it - large number of American employees, innovation-driven (since even now much of the REAL innovation happens in good 'ol USA nothwithstanding the fact that we tweak some powerpoint presentations and call it innovation), so on and so forth.

    My personal belief is that, companies will find ways and means to work around these taxes and live with some more pain. It may not be all that good for Bangalore, at least in the short run, though eventually, as water finds the lowest level, jobs will find the lowest salaries - given the same level of competence! :)



    But to focus on the larger issue, this protectionist trend is in line with 2 things:
    1. The Democrats track record of being more anti-Indian than Republicans
    2. Increasing protectionism which is a suer sign of continuing recession/depression and which will make this deeper and longer than necessary.

    Check out Smoot Hawley Tariff Act which came in 1930 and made the depression much worse ]http://en.wikipedia.org/wiki/Smoot-Hawley_Tariff_Act).

    The markets are roaring up on FII speculation. The first leg (down) of the Bear market ended on 6/9 March and this is the second leg up which is likely to go upto Sensx 14500 with stops at 11000 and 12500. The third leg down will be the most powerful and violent.

    Warren Buffett is already talking about US Debt/GDP ratio at 54% by 2011 and maybe even touch 80%. Currently we are facing such severe pain even at the level of 12%, imagine what would be the state at those levels.

    Companies like TCS are likely to face more pain as the likes of Chrysler cut outsourcing. Exports in 2008 was $163 Billion. It went up to $167 billion in 2009 (as against a target of $200 Billion. March alone say a decline of 33%. We should actually see the real drops in exports and performance in the coming year and I'm looking at anywhere from 10% - 25% drop. The job losses and salary losses (reduction in disposable personal income) will see a steepening curve in the coming months. The real pain is yet to come.

    RE Companies which lived on cash reserves and hopes will see both dwindle and possibly die out. Distress will happen.

    Where do you think prices are headed? Watch out!

    cheers).

    The markets are roaring up on FII speculation. The first leg (down) of the Bear market ended on 6/9 March and this is the second leg up which is likely to go upto Sensx 14500 with stops at 11000 and 12500. The third leg down will be the most powerful and violent.

    Warren Buffett is already talking about US Debt/GDP ratio at 54% by 2011 and maybe even touch 80%. Currently we are facing such severe pain even at the level of 12%, imagine what would be the state at those levels.

    Companies like TCS are likely to face more pain as the likes of Chrysler cut outsourcing. Exports in 2008 was $163 Billion. It went up to $167 billion in 2009 (as against a target of $200 Billion. March alone say a decline of 33%. We should actually see the real drops in exports and performance in the coming year and I'm looking at anywhere from 10% - 25% drop. The job losses and salary losses (reduction in disposable personal income) will see a steepening curve in the coming months. The real pain is yet to come.

    RE Companies which lived on cash reserves and hopes will see both dwindle and possibly die out. Distress will happen.

    Where do you think prices are headed? Watch out!

    cheers
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  • Originally Posted by vijai5
    i dont understand how come it will benefit us,if microsoft does that it will loose his market share,how many people in india and china would have bought the original XP or VISTA from Microsoft.where as in US each and every household will have all the original s not pirated.thats the power of americans,no people can match the spending power of americans


    This is where most of you are missing the point? You are talking about market side only?

    I am not saying that India, China, Middle East would get 100% revenue for Microsoft. Americans, Europeans will continue to buy Microsoft products.

    Only point is their head office if shifted to China for example, Microsoft will become a China registered company. China with its massive reserves can support many american giants like Microsoft with money and provide them 100% tax free incentives for more then 15 years also.

    I did a consulting engagement for McDonalds recently, mind you 85% of their revenues also now come outside US. Why should they still be american, why not shift their headquarters to Shanghai (which has most Mcdonalds in the world)
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  • Will we allow Indian jobs going to Nepal, srilanka, Burma?. So what US is doing is correct

    On way it is better. Less IT jobs in India will lead to more uniform,distributed,balance growth.

    IT staff getting fat salaries increased cost of living in Metros. Non IT guys were suffering. Now let it be balanced.

    RE will come down. More common people will afford to buy flats in metros
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  • Originally Posted by lovebird
    Will we allow Indian jobs going to Nepal, srilanka, Burma?. So what US is doing is correct

    On way it is better. Less IT jobs in India will lead to more uniform,distributed,balance growth.

    IT staff getting fat salaries increased cost of living in Metros. Non IT guys were suffering. Now let it be balanced.

    RE will come down. More common people will afford to buy flats in metros


    Then why should Chinese eat in Mcdonalds?
    Why should Indians buy Ford Fiesta's?
    Why should Japanese buy I pods?

    But Chinese can create their own McDonalds.
    Indians can start buying Mahindra Scorpios or Tata Safaris.
    Japanese have PS3 which is even more advanced.

    In the end America will suffer if it does not understand world trade.
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  • Originally Posted by vijai5
    thats the power of americans,no people can match the spending power of americans


    Then why did Chrysler, which mainly depended on greatest :D american market become bankrupt?

    China is world's largest car market now.

    Tata Motors has raised Rs.2500 crores so far in Tata Nano booking.

    Never underestimate asia my friend.....BSE index just raised 45% since March 6th, Tata Motors was a top performer.
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  • Originally Posted by lovebird
    Will we allow Indian jobs going to Nepal, srilanka, Burma?. So what US is doing is correct

    On way it is better. Less IT jobs in India will lead to more uniform,distributed,balance growth.

    IT staff getting fat salaries increased cost of living in Metros. Non IT guys were suffering. Now let it be balanced.

    RE will come down. More common people will afford to buy flats in metros


    Dear friend,

    Do not blame IT guys for every thing. It is partly true that IT guys have pushed up the RE market and the mid size car segment earlier but not every thing. I do not think, the cost of living going up is due to IT guys.

    ks2071746
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  • Originally Posted by ks2071746
    Dear friend,

    Do not blame IT guys for every thing. It is partly true that IT guys have pushed up the RE market and the mid size car segment earlier but not every thing. I do not think, the cost of living going up is due to IT guys.

    ks2071746


    Any lay man will agree that reasons for recent ( from 2003 to 2007) cost of living going up in metros are due to IT growth and fat salaries for them
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  • Originally Posted by lovebird
    Any lay man will agree that reasons for recent ( from 2003 to 2007) cost of living going up in metros are due to IT growth and fat salaries for them

    some people on this forum think that vegetable vendors, mailmen and not IT folks have jacked up these RE prices.
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  • Originally Posted by lovebird
    Any lay man will agree that reasons for recent ( from 2003 to 2007) cost of living going up in metros are due to IT growth and fat salaries for them



    What's wrong if IT people earn good salaries. You also work hard and earn high salary, who is stopping you?

    Understand free market, democracy before making such statements.

    Any job as long as it is legal it is a decent job...let them just enter excel spreadsheets....just rework powerpoint presentations....or write a javascript code...or do some consulting. Atleast they earn instead of blaming others.

    No need to blame IT professionals and any other professionals for your problems.

    I have friends in non IT sectors working in private banks like HDFC, Kotak who are earning much higher then IT professionals. There are other companies like Reliance (oil&gas), L&T(construction), Alstom(Infrastucture), Reliance Retail (Retail), Metro (Wholesale) which are paying salaries higher then IT professionals.

    Inspite of all these salaries in India are still peanuts....1/5th of US. I have worked both in India and US and let me tell you there is nothing intellectually great about US. US people don't have extra balls in their brains....they only know how to use foreign talent like us.

    Actually their is still enough upside for IT salaries in India...when next wave of outsourcing begins.
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  • Dear friend,

    Say no to Bangalore and yes to Buffalao/Newyork will in fact affect the American firms only. By way of increased hourly rates in America as compared to outside America lower rates. This in fact may help countries like India who may get advantage to be competitive as compared to the American rates. This is going to be counter productive to the American Companies.

    ks2071746
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