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Say No to Bangalore And Yes to Buffalo

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Say No to Bangalore And Yes to Buffalo

Last updated: May 6 2009
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  • Say No to Bangalore And Yes to Buffalo

    '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[/URL]

    ]http://ibnlive.in.com/news/obama-bailout-say-no-to-bangalore-yes-to-buffalo/91807-2.html[/URL]
  • #2

    #2

    Re : Say No to Bangalore And Yes to Buffalo

    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
    Last edited by ks2071746; May 5 2009, 03:22 PM. Reason: spell

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    • #3

      #3

      Re : Say No to Bangalore And Yes to Buffalo

      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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      • #4

        #4

        Re : Say No to Bangalore And Yes to Buffalo

        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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        • #5

          #5

          Re : Say No to Bangalore And Yes to Buffalo

          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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          • #6

            #6

            Re : Say No to Bangalore And Yes to Buffalo

            Will they shift?

            Originally posted by contra View Post
            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!

            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[/url]).

            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
            Last edited by wiseman; May 5 2009, 11:44 AM.

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            • #7

              #7

              Re : Say No to Bangalore And Yes to Buffalo

              Originally posted by vijai5 View Post
              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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              • #8

                #8

                Re : Say No to Bangalore And Yes to Buffalo

                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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                • #9

                  #9

                  Re : Say No to Bangalore And Yes to Buffalo

                  Originally posted by lovebird View Post
                  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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                  • #10

                    #10

                    Re : Say No to Bangalore And Yes to Buffalo

                    Originally posted by vijai5 View Post
                    thats the power of americans,no people can match the spending power of americans
                    Then why did Chrysler, which mainly depended on greatest 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.
                    Last edited by contra; May 5 2009, 02:16 PM. Reason: grammer

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