Hereby I will prove how the realty boomers arguments are false.

What are the boomers arguments?

1.) Buy today, houses always increase in value in the long run.
WRONG. House prices cannot increase more than incomes in the long run. This is obvious if you think about it. If house prices go up more than people can afford to pay, buying stops, like it has stopped now.
Even Warren Buffett have pointed out that houses don't increase in intrinsic value. Unless there's a bubble or a crash, house prices simply reflect current salaries and interest rates. If a house is 100 years old, it's value in sheltering you is exactly the same as it was 100 years ago. Then came the maintenance as the house didn't renovate itself. It also has taxes, and insurance - costs that always increase and never go away. The price of the house went up about as much as salaries went up.
To put this is simple perspective, vegetable were costing Rs.5-6/kg when 5 digit salary was a rarity.
Today, the prices have gone up by about 4 times but so have the salaries. So, sounds very much like the reasoning people use now when they talk about how much their father's house appreciated "in the long run" without considering that salaries rose a proportional amount.

2.) Renting is just wastage of money.
WRONG. As said before renting is now much cheaper per month than owning. If you don't rent, you either:

* Have a mortgage, in which case you are throwing away money on interest, tax, insurance, maintenance, costs that increase forever.
* Own outright, in which case you are throwing away the extra income you could get by converting your house to cash, investing in bonds, and renting a similar place to live for much less money. This extra income is sufficient for emergency expenses,retirement etc.

Either way, owners lose much more money every month than renters and that's assuming prices don't correct to very high level & everything is smooth in the economy.

3.) As a renter, you won't have any money left as you will spend them on vacations,cars & hence won't have equity/savings etc.
WRONG. Equity is just money. Renters are actually in a better position to build equity/savings through investing in anything but housing. Renters can get rich much faster than owners, just by investing in conservative stocks & bonds.

* Owners are losing every month by paying much more for interest than they would pay for rent. The tax deduction does not come close to making owing competitive with renting.
* Owners must pay taxes simply to own a house. That is not true of stocks, bonds, or any other asset that can build equity/savings. Only houses are such a guaranteed drain on cash.
* Owners must insure a house, but not most other investments.
* Owners must pay to repair a house, but not a stock or a bond.
* Owners lose their money as house prices reduce. The EMI's remain constant in spite of reduction in rates. At the end of loan tenure, they would have paid almost twice than that of current renters who will buy at logical rates. Keep interest rates in mind. Most of the EMI is not principal amount but interest.

4.) There are great tax advantages to owning a house.
WRONG. Many people believe you can just reduce your income tax by the amount you pay in interest, but they are wrong. Buyers may not deduct interest from income tax; they deduct interest from taxable income. And even then, the tax advantage is not significant compared to the large monthly loss from owning.

If you don't own a house but want to live in one, your choice is to rent a house or rent money to buy a house. To rent money is to take out a loan. A mortgage is a money-rental agreement. House renters take no risk at all, but money-renting owners take on the huge risk of falling house prices, as well as all the costs of repairs, insurance, property taxes, etc.

5.) RE is based on local factors, it's not a national phenomenon. RE of Delhi-NCR,Bangalore & rest of the cities has nothing to do with Pune RE.
WRONG. Lending rates remain the same throughout the country. ALL loans are harder to get. This will drive prices down everywhere.

6.) A rental house provides good income. So, you can rent if you have purchased as investment.
WRONG. Rental houses provide very poor income in hyped areas and certainly cannot cover mortgage payments. Remember there is almost 300% difference between EMIs & rent for the same house.

It's pointless to do the work of being a landlord if you can make more money with no risk, no work, and no state income tax by investing in assured good returns bond.

7.) If owning is a loss in monthly cash flow, but appreciation will make up for it.
WRONG. Appreciation is negative. Prices are going down. It only adds to the injury of already high EMI's.

8.) As soon as prices drop a little, the number of buyers on the sidelines willing to jump back in increases.
WRONG. There are very few buyers left, and those who do want to buy will be limited by increasing difficulty of borrowing now that many house owners are near bankrupt as they don't save anything at the end of the month due to high EMI's.
No one has to buy, but there will be more and more people who have no choice but to sell as their payments rise. That will keep driving prices downward for a long time.

9.) House prices never fall atleast in Pune.
WRONG. If you see the RE scenario of 1996, prices crashed by 50% & took a whole 7+ years to recover.
Exact 1996 scenario may not be there today but strong correction is inevitable across the city.

10.) House prices don't fall to zero like stock prices, so it's safer to invest in real estate.
WRONG. House prices won't be zero, but the equity or the principal amount you paid can be zero or even negative. What you will pay as EMIs later in actual terms is not for the principal amount but only the interest as house prices dip. So, you will be only serving the bank.

11.) Prices will soften gradually, won't crash immediately.
WRONG. Prices are falling off a cliff. No one knows exactly what will happen, but it looks like prices will continue to fall for long time. These are just more manipulation of buyer emotions, to get them to buy even while prices are falling.

12.) The bubble prices were driven by supply and demand alone.
WRONG. Prices were driven by low interest rates and risky loans & good returns for investors in initial phases of boom in 2004-05.
Prices went up, interest rates went up & buyers savings went down. So prices are violating the most basic assumptions about supply and demand.

13.) There is lack of land.
WRONG. Ample of land is available & continue to be even in future in Pune. Sales volume are down. Even in Japan (small country with less land), prices went down. Current prices here are the same as that of 23 years ago. If we really had a housing shortage, there would not be so many vacant rentals.

14.) If you don't own, you'll live in a cheap neighborhood later.
WRONG. For the any given monthly payment, you can rent a much better house than you can buy. Renters live better, not worse. There are downsides to renting, such as being told to move at the end of your lease, or having your rent raised, but since there are thousands of vacant rentals, you can take your pick and be quite happy renting during the crash. There are similar but worse problems for owners anyway, such as being fired and losing your house, or having your interest rate and property taxes adjust upward. Remember, property taxes are forever.

15.) There's always someone predicting a real estate crash.
TRUE, yet irrelevant. There are very real crashes every decade or so. Even a broken clock is right twice a day.

16.) Local incomes justify the high prices.
WRONG. The mortgage should be more than your 3 years earning. It is much higher today. Most are already in danger/red zone.

17.) You have to live somewhere.
CORRECT. But that doesn't mean you should waste your life savings on a bad investment. You can live in a better house for much less money by renting during the down slide in RE.

18.) It's not a house, it's a home.
WRONG. Wherever one lives in it is home, be it apartment, condo, bungalow , mansion or house. Calling a house a "home" is a manipulation of your emotions for profit.

19.) If you don't buy now, you'll never get another chance.
WRONG. History proves otherwise.
Here's a beautiful quote from a analyst:-
"The real issue isn't whether you will be stuck being a renter all your life, she says. Its whether you'll get so scared about being shut out that you'll buy at the market's peak and be stuck in a property you can't afford or sell."

20.) It would take major economic recession or a major earthquake that wipes out this area in order for the price to fall by over 50%.
WRONG. Even today, if the prices fall by 50%, there will still be very few people who can buy at this levels due to uncertainty in jobs & most importantly high EMIs. Also, look at the rental rates for equivalent houses. Which loss per month is larger? EMI or rent?

contd....
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  • You may be understating the dangers!

    Originally Posted by compuwalah
    Right wisey. The prop will change hands at very high level in bulk and the guy will have good amount of holding power. In reality the houses will not change hands. They will remain on original builder but he will sell as some OTC arrangement against a DEBT at much unfavourable condition. What a builder needs is that someone who can take him through the rough period and bailing party must be having deep pocket and patience. Builder will settle for a lesser cut in exchange.

    Just posting one negetive new after another and infering a major correction, nothing has happened in practice for so many years. Simple stats : India at present has home ownership of only 20%. On top population is increasing and India is a structural bull for few decades to come. With the inflation rate touching double digit, a 10 to 12 % increase in house prices per year is straight logical. Given that the land is limited (I mean the land which has got relatively good proximity to aminities) , add a extra 5 to 7 % premium on same (such premium will be high initially but lower as city expands) and you can easily see that the current price increase are not that much irrational. I still feel Pune is underpriced compared to Mumbai (even you compare the infra/facilities etc etc). This has proven correct for past few years with steady rise in the prices (with some softening which in neglegible).

    The GDP growth of 6% is very good news. In such time the weak players are eliminated setting foundation for high future growth. If we go by all negetive predictions so far on this forum, apt price should have touched in 3 digits (500 Rs psf etc ) by now. In reality movement is seen in opposite direction.

    Time and again it was observed that people who have bought (when all the trumpet of major correction was being blown from 2008 onwards) are pretty happy. innocent, akssenti and many others are just having good time after their purchase. They spend less time in forum and more at home :D.



    Compu,

    Under "old normal" circumstances, posting one negative news after another and predicting price declines would have worked - refer the 1995 - 98 decline in RE for the first time that I know of!

    Again, under old normal circumstances, the decline would have happened and rebound too would have happened. By now we would have returned to a strong, secular, long term bull market.

    But, given the "new normal", where bad situation is made worse by bailing out with taxpayers money the bankers who took big risks which failed (and basically telling them its okay to take risks with OPM and if you profit well and good, if you fail we can always bail you out with other people's money), it sets 2 precedents ...

    1. It tells savers to abandon saving and jump into the risk bandwagon. Which is why you now see "investors" become "traders" (without having the skills to do so), thus sucking savings out of the system and creating one very large risk overhang throughout the system

    2. It converts safe money into highly risky money all through the financial system creating the base for a huge crash when the time comes

    This is very true for almost all major countries, including (as you would have noticed the news today) China.

    Coming to our topic, have you realised the risks to all those "happy people at home" who run a risk of a major crash in the financial as well as the RE system within the next 8-10 years? This is the period where they have paid a major portion of their EMI as interest and their equity in their "happy homes" would not exceed 25-35%.

    I believe that we should see a major crash definitely within the next 5 years and if this also includes big job losses then there surely will be a major crisis.

    So, I think these people spending their time in Happy Homes with large amounts of debt should defer their happiness till they pay down this debt!

    cheers
    CommentQuote
  • Originally Posted by wiseman
    Compu,

    Under "old normal" circumstances, posting one negative news after another and predicting price declines would have worked - refer the 1995 - 98 decline in RE for the first time that I know of!

    Again, under old normal circumstances, the decline would have happened and rebound too would have happened. By now we would have returned to a strong, secular, long term bull market.

    But, given the "new normal", where bad situation is made worse by bailing out with taxpayers money the bankers who took big risks which failed (and basically telling them its okay to take risks with OPM and if you profit well and good, if you fail we can always bail you out with other people's money), it sets 2 precedents ...

    1. It tells savers to abandon saving and jump into the risk bandwagon. Which is why you now see "investors" become "traders" (without having the skills to do so), thus sucking savings out of the system and creating one very large risk overhang throughout the system

    2. It converts safe money into highly risky money all through the financial system creating the base for a huge crash when the time comes

    This is very true for almost all major countries, including (as you would have noticed the news today) China.

    Coming to our topic, have you realised the risks to all those "happy people at home" who run a risk of a major crash in the financial as well as the RE system within the next 8-10 years? This is the period where they have paid a major portion of their EMI as interest and their equity in their "happy homes" would not exceed 25-35%.

    I believe that we should see a major crash definitely within the next 5 years and if this also includes big job losses then there surely will be a major crisis.

    So, I think these people spending their time in Happy Homes with large amounts of debt should defer their happiness till they pay down this debt!

    cheers

    crash or no crash, but all those who are hoping for appreciation in RE from this point onward will repent. Peak never announces itself but it is only retrospectively discovered. We are all blissfully unaware that we are sitting on RE peak. This peak is not for ever and it will also be surpassed at some point of time, but we are still not worried about the heights
    CommentQuote
  • Realty major DLF has found no takers for its Mumbai land parcel, reports CNBC-TV18' Priyanka Ghosh. The company had put the land parcel on sale six months back.
    DLF initially wanted to sell 17 acres for Rs 4,000 crore. Offers made to DLF are below Rs 2,000 crore.



    No takers for DLF Mumbai land parcel; stock slips 4.5% - CNBC-TV18 -
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  • So, is that a 30% crash Already?!

    :)
    Originally Posted by mymarji
    Realty major DLF has found no takers for its Mumbai land parcel, reports CNBC-TV18' Priyanka Ghosh. The company had put the land parcel on sale six months back.
    DLF initially wanted to sell 17 acres for Rs 4,000 crore. Offers made to DLF are below Rs 2,000 crore.



    No takers for DLF Mumbai land parcel; stock slips 4.5% - CNBC-TV18 -


    Theoretically, if land price is the major input to final price of your home (what is it - 50%, 60%, 70%?) and if deal value is less than 50% of quoted price, can we say overall price should now be anywhere from 25% - 35% down? :)

    Is that a crash already happening stealthily?! :)

    cheers
    CommentQuote
  • Originally Posted by compuwalah
    Right wisey. The prop will change hands at very high level in bulk and the guy will have good amount of holding power. In reality the houses will not change hands. They will remain on original builder but he will sell as some OTC arrangement against a DEBT at much unfavourable condition. What a builder needs is that someone who can take him through the rough period and bailing party must be having deep pocket and patience. Builder will settle for a lesser cut in exchange.

    Compu, there is also a cost called as ' Cost of Holding ' where you need to hold on asset for longer period of time without making gains. Also note that older the flat, lesser is the price due to depreciation. How many would like to buy 5 yr old flat for same price as new one ?

    and you can easily see that the current price increase are not that much irrational. I still feel Pune is underpriced compared to Mumbai (even you compare the infra/facilities etc etc). This has proven correct for past few years with steady rise in the prices (with some softening which in neglegible).

    These are generally the words of Kruti Jain of KUL :D.
    Man, had this been the case, Thane & Navi Mumbai beats Pune hands down, not only in terms of infra but even proximity to Mumbai. Not to forget the mono-rail which will be coming there soon as well. There is not even proper road connectivity in Pune, let alone public transport, nor is there any airport. Even the DP is pending.

    If this is the logic, then Satara has to be more expensive than Nashik coz Satara is near to Pune !!
    CommentQuote
  • Builder Goes Bust

    A clear indication showing the liquidity crisis which most of the builders are facing.

    HDIL's cheque bounces thrice, loses Aurangabad land deal

    MUMBAI: Four years ago, HDIL was known for its clout in Mumbai's real estate market. It sponsored fashion weeks and even stepped in to back an IPL team. Vice-Chairman and Managing Director Sarang Wadhawan, a member of the HDIL promoter family, was a rising star, charting out plans for the hospitality and multiplexes business.

    But those were the good old days. Today, saddled with a debt of over Rs 4,000 crore, HDIL is selling land parcels. The company is even finding it difficult to pay Rs 7 crore for a land deal it entered sometime ago. The land owner, tired of not receiving any response from HDIL, has terminated the agreement after the cheque submitted by HDIL bounced thrice since Diwali.

    Since Diwali, cheques have bounced thrice and there has been no response from the company on this matter," said a director of Shreehari Associates. The construction and project development company has also filed a case under Section 138 of the amended Negotiable Instrument Act and a notice to this effect has also been served to HDIL, said the person.

    HDIL did not respond to ET's email query on the development till the time of going to press. A senior analyst who tracks HDIL told ET that the company's operating cash flow has been falling. "This possibly led to its decision to sell land parcels and floor space index at its projects," he said. But what has surprised the city's realty market is inability of a large developer like HDIL to arrange funds for a relatively small transaction in a tier-II city.

    Plunge in sales of residential apartments, low demand for transferable development rights held by redevelopment majors like HDIL and absence of new launches have added to the company's woes.

    HDIL's cheque bounces thrice, loses Aurangabad land deal - Economic Times
    CommentQuote
  • DLF faces D-Street ire on financial health concerns

    ENS Economic Bureau : Mumbai, Sat Mar 03 2012, 01:04 hrs

    Realty major DLF faced selling pressure on the bourses as concerns over the financial health of the company unnerved investors for the second day in a row.

    The report questioned DLF’s accounting standards, while stating that the firm had inflated its accounts and that the company’s stock was worth less than half its current price level.

    “Claims made by management about its ability to execute were fanciful. Aggressive accounting approved by auditors, perpetuated and aided by investment bankers during the IPO process, the ill-informed media frenzy surrounding the IPO, and the company’s high profile in Gurgaon ... have all contributed to the myth that DLF is a corporate pillar of India. Management also garnered some national awards subsequently, thereby cementing its position in the annals of Indian business stalwarts,” Veritas said in its report on DLF.

    The report has specifically cited corporate governance issues pertaining to the merger of promoter-held DLF Assets (DAL) into listed firm DLF in 2009.

    “We do not believe the disclosed book equity and asset base of the company. We believe that via its dealings with DAL, from FY’07 to FY’11, the company inflated sales by at least Rs 11,236 crore and its profit before tax by Rs 7,233 crore,” Veritas said. In a best case scenario DLF is worth Rs 100 per share — less than half its current stock price of Rs 226.9, said the report authored by Neeraj Monga and Nitin Mangal.:bab (34):

    According to Veritas, DLF has undertaken questionable related-party transactions to boost the value of DAL prior to its acquisition by DLF, thereby subverting the interest of minority shareholders via a higher purchase price for DAL. “If your investment decision incorporates management integrity, then bypassing DLF will be an easy choice. For those willing to look past aggressive and conflicting accounting policies, self-enrichment and inability to deliver on promises, then perhaps a balance sheet stretched to the limit (TTM net debt/ EBITDA multiple of 6.03×2), with no respite in sight and debt restructuring a real possibility, will be the dissuading part,” Veritas said.

    “Since the IPO, management has faltered at every step in executing its grandiose vision to be a conglomerate with tentacles spread across hotels (the JV with Hilton has ended and Silverlink Resorts is up for sale), build mega townships (exited Bidadi in Karnatka and Dankuni in West Bengal), become free cash flow positive by FY’11 (negative Rs 936 crore for the year), build a mega convention centre in the NCR region (exited in 2009), and so on,” Veritas said.

    DLF faces D-Street ire on financial health concerns - Indian Express
    CommentQuote
  • DLF toxic?

    Originally Posted by realacres
    ENS Economic Bureau : Mumbai, Sat Mar 03 2012, 01:04 hrs

    Realty major DLF faced selling pressure on the bourses as concerns over the financial health of the company unnerved investors for the second day in a row.

    The report questioned DLF’s accounting standards, while stating that the firm had inflated its accounts and that the company’s stock was worth less than half its current price level.

    “Claims made by management about its ability to execute were fanciful. Aggressive accounting approved by auditors, perpetuated and aided by investment bankers during the IPO process, the ill-informed media frenzy surrounding the IPO, and the company’s high profile in Gurgaon ... have all contributed to the myth that DLF is a corporate pillar of India. Management also garnered some national awards subsequently, thereby cementing its position in the annals of Indian business stalwarts,” Veritas said in its report on DLF.

    The report has specifically cited corporate governance issues pertaining to the merger of promoter-held DLF Assets (DAL) into listed firm DLF in 2009.

    “We do not believe the disclosed book equity and asset base of the company. We believe that via its dealings with DAL, from FY’07 to FY’11, the company inflated sales by at least Rs 11,236 crore and its profit before tax by Rs 7,233 crore,” Veritas said. In a best case scenario DLF is worth Rs 100 per share — less than half its current stock price of Rs 226.9, said the report authored by Neeraj Monga and Nitin Mangal.:bab (34):

    According to Veritas, DLF has undertaken questionable related-party transactions to boost the value of DAL prior to its acquisition by DLF, thereby subverting the interest of minority shareholders via a higher purchase price for DAL. “If your investment decision incorporates management integrity, then bypassing DLF will be an easy choice. For those willing to look past aggressive and conflicting accounting policies, self-enrichment and inability to deliver on promises, then perhaps a balance sheet stretched to the limit (TTM net debt/ EBITDA multiple of 6.03×2), with no respite in sight and debt restructuring a real possibility, will be the dissuading part,” Veritas said.

    “Since the IPO, management has faltered at every step in executing its grandiose vision to be a conglomerate with tentacles spread across hotels (the JV with Hilton has ended and Silverlink Resorts is up for sale), build mega townships (exited Bidadi in Karnatka and Dankuni in West Bengal), become free cash flow positive by FY’11 (negative Rs 936 crore for the year), build a mega convention centre in the NCR region (exited in 2009), and so on,” Veritas said.

    DLF faces D-Street ire on financial health concerns - Indian Express



    IPO in 2007 gathered 9650 crores from public at 550 (face value Rs.2) to

    - invest 3000 crores in land

    - Pay construction cost and repay debt!

    Now we find that land parcels are being sold away, debt has ballooned to over 20000 crores, etc

    Here is the modus operandi ...

    - DLF sells (transfers?) its projects at an inflated price to DAL

    - DAL then assumes an inflated value due to all those inflated assets held by it

    - DLF goes to public showing inflated sales and profits and asks for a princely sum to own its shares. Back in 2007 the Bull-market-mad public laps up those shares at an astronomical premium to stash the cash in DLF for the last stage in this thievery

    - DAL is then bought back by DLF with public money, thus transferring public wealth to private hands (their own) and dumping pumped up assets of DLF back into DLF for an inflated value on the books

    KP Singh is shown as a billionaire many times over and ranked among world's top rich people! Of course those days are only a distant dream as most of his "wealth" was shown up as paper wealth which is crashing every day!

    Finally DLF goes blundering around not being able to do even what they promised and gradually the Emperor's clothes are shown up for what they are.

    DLF rises to 1300 and then falls all the way to 135.

    Will it now be investigated and will price drop (like Satyam)? Will DLF face large lawsuits for all the "fraud" allegedly done by them?

    Am I wrong in any of these statements? I'm ready to be corrected so that I can get the real picture of the DLF saga.

    cheers
    CommentQuote
  • Brokering News

    All about paid news

    Brokering News

    Description: Indian media has much to be proud of – no one can deny this. It played an important role during the struggle for freedom, if democracy in India has survived part of the credit must be given to Indian media as well. But there is an increasing public disenchantment, not just with its slant, shrillness, sermonizing and sensationalism, but with its core value, namely integrity. News market in India is getting too crowded, & in a sluggish economy the advertising cake is getting thinner. Media houses are furiously engaged in finding new and innovative ways to augment their dwindling revenues. One route to prosperity is passing off sponsored news as professional news. Whether the Indian media likes to admit it or not, journalism is up for sale. It is no longer a secret that selling of editorial space has become both blatant and institutionalized, and that neither the print nor the electronic media are immune to the malaise. To get insight into the practice – BROKERING NEWS features stalwarts of Indian Journalists. 1. Mrinal Pande 2. Vinod Mehta 3. Sucheta 4. Pradeep Magazine 5. Shobha De 6. Khalid Mohemmad 7. Sevanti Ninan 8. Rajdeep Sardesai 9. Mahesh Bhatt. Dr.S.Y.Quraishi, Chief Election Commissioner of India
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  • There is no excuse for delay

    A very good article from Indian Express. It is a must read for all buyers as it shows how & why builders delay projects & the rights which can be exercised by the buyers in such cases of delays .

    A well-known developer having a project in the Palam Vihar neighbourhood in Gurgaon was made to pay a hefty fine and 24 per cent interest to the buyer by the National Consumer Disputes Redressal Commission (NCDRC) for not giving timely possession.”

    Cases such as this are routine as almost 90 per cent projects in India are delayed and a significant rise in complains of delayed possessions has been recorded. The image of the real estate industry is being tarnished by a few but it is the buyer who suffers the most.

    The Impact

    “I have taken a loan and am paying huge EMI on it since 95 per cent of the payment is taken by the developer. I was to get the possession in last June, hence I sold my small house by then. Since I didn’t get the possession as promised, I had to shift to a rented apartment for a short while. Now I am paying EMI and rent every month. The recent hike in interest rates has added to my ordeal. If I still do not get possession by this April, I will face increased rent as well. It is a mess,” says Jasbir Mehrotra (name changed), who has booked a flat in the project by a known developer in a central suburb of Mumbai, which has been delayed by years.

    There is no excuse for delay - Indian Express
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  • Realacres your post should be tagged on home page of this forum,
    Thank you very much
    CommentQuote
  • Thanks realacres, this situation is well known, yet the first time buyer has to accept it as all of us know how much work is done by individual to finalize his/her home. Now though awareness among buyers is increasing, atleast on carpet are/loading/documents, still a long way to go.
    CommentQuote
  • Member

    Join Date: Feb 2011
    Posts: 57
    Thanks: 7
    Thanked 5 Times in 4 Posts
    Rep Power: 1


    Brokering News
    All about paid news

    Brokering News

    Description: Indian media has much to be proud of – no one can deny this. It played an important role during the struggle for freedom, if democracy in India has survived part of the credit must be given to Indian media as well. But there is an increasing public disenchantment, not just with its slant, shrillness, sermonizing and sensationalism, but with its core value, namely integrity. News market in India is getting too crowded, & in a sluggish economy the advertising cake is getting thinner. Media houses are furiously engaged in finding new and innovative ways to augment their dwindling revenues. One route to prosperity is passing off sponsored news as professional news. Whether the Indian media likes to admit it or not, journalism is up for sale. It is no longer a secret that selling of editorial space has become both blatant and institutionalized, and that neither the print nor the electronic media are immune to the malaise. To get insight into the practice – BROKERING NEWS features stalwarts of Indian Journalists. 1. Mrinal Pande 2. Vinod Mehta 3. Sucheta 4. Pradeep Magazine 5. Shobha De 6. Khalid Mohemmad 7. Sevanti Ninan 8. Rajdeep Sardesai 9. Mahesh Bhatt. Dr.S.Y.Quraishi, Chief Election Commissioner of India

    Did he forget to mention Barakha Dutt ? How come?
    CommentQuote
  • Originally Posted by dnkumar
    Member

    Join Date: Feb 2011
    Posts: 57
    Thanks: 7
    Thanked 5 Times in 4 Posts
    Rep Power: 1


    Brokering News
    All about paid news

    Brokering News

    Description: Indian media has much to be proud of – no one can deny this. It played an important role during the struggle for freedom, if democracy in India has survived part of the credit must be given to Indian media as well. But there is an increasing public disenchantment, not just with its slant, shrillness, sermonizing and sensationalism, but with its core value, namely integrity. News market in India is getting too crowded, & in a sluggish economy the advertising cake is getting thinner. Media houses are furiously engaged in finding new and innovative ways to augment their dwindling revenues. One route to prosperity is passing off sponsored news as professional news. Whether the Indian media likes to admit it or not, journalism is up for sale. It is no longer a secret that selling of editorial space has become both blatant and institutionalized, and that neither the print nor the electronic media are immune to the malaise. To get insight into the practice – BROKERING NEWS features stalwarts of Indian Journalists. 1. Mrinal Pande 2. Vinod Mehta 3. Sucheta 4. Pradeep Magazine 5. Shobha De 6. Khalid Mohemmad 7. Sevanti Ninan 8. Rajdeep Sardesai 9. Mahesh Bhatt. Dr.S.Y.Quraishi, Chief Election Commissioner of India

    Did he forget to mention Barakha Dutt ? How come?



    Maybe because she was caught on tape trying to be a power broker and is now trying to change her red face to white with gusto?! :)

    cheers
    CommentQuote
  • What I completly hate about Barkha Dutt is when I see her asking question on moral grounds in her show after her exposure with Radia tapes.
    Media persons are not only misguiding people in financial front but at all level. Being congress mouth piece she has marked every year february in her calendar for visiting Gujarat and open the wounds of people affected by Godhra riots all over again - pathetic is a small word.
    CommentQuote