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Economy
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Indian-American given job of saving Wall Street
Chidanand Rajghatta,TNN
WASHINGTON: A 35-year old Indian-American whiz whose parents migrated from Jammu and Kashmir is being entrusted with task of rescuing Wall Street,the US economy -- and the pretty much the entire financial world tied to its coat tails -- from a dizzying tailspin that is crushing markets and people across the globe. ( Watch )
US Treasury Secretary Henry Paulson on Monday named Neel Kashkari, currently the Assistant Secretary for International Affairs in the Department of Treasury, as the interim head for its new Office of Financial Stability, including the Troubled Asset Relief Program, to oversee the $700 billion bailout program aimed at arresting the US economy`s precipitous slide arising from the mortgage crisis.
Kashkari is one of nearly half-dozen Indian-Americans, including Louisiana Governor Bobby Jindal, who have served in the Bush administration at Tier Two cabinet levels. But the new job clearly puts Kashkari in a different league altogether.
A long-time understudy and associate of Secretary Paulson going back to their days at Goldman Sachs, Kashkari was nominated as assistant secretary and confirmed by the Senate only in July this year in a little-noticed development at that time because it came at the tail-end of the Bush administration`s eight-year run in office.
But the monumental crisis that has spooked Wall Street and the associated world has thrown the young Indian-American engineer-turned-financial expert into the spotlight. Hours before the appointment, the financial world and blogosphere was agog with the news of such a young man being tasked with such a huge task on a day the market continued its downward spiral.
"It seems a curious time to appoint a young acolyte from "The Firm" (Goldman Sachs) to run one of the most critical financial rescue programmes in US history," the Financial Times` blog Alphaville observed, noting Kashkari`s substantial science background. "There is a small matter of experience. He is 35 years old and - if appointed and confirmed - will, as the Wall Street Journal points out, gain a `position of substantial power` overseeing Treasury`s effort to buy the financial industry`s bad loans and other distressed securities."
On a day the Dow tanked 800 points at one point and went close to 9500, a wiseacre on Market Ticker forum wrote, "Seriously? The guy overseeing the $700 billion is named `CashCarry`? You really can`t make this stuff up..." The last time the Dow was below 10,000 was October 2004.
Kashkari has a bachelor`s degree in engineering from the University of Illinois at Urbana-Champaign (birthplace of the original Internet browser Mosaic) and went to earn a master`s degree in aerospace engineering to initially take up a career in sciences. He worked as the R&D Principal Investigator at the company TRW in Redondo Beach, California, where he developed technology for NASA space science missions such as James Webb Space Telescope, the replacement for Hubble, which is scheduled for launch in 2013.
But apparently, the call, or lure, of the finance world was so strong that he enrolled for an MBA at Wharton School of the University of Pennsylvania, graduating in 1997. He then joined Goldman Sachs in San Francisco, where he led the firm`s IT security investment banking practice, advising public and private companies on mergers and acquisitions and financial transactions, before moving to New York where he worked closely with then chairman and CEO Henry Paulson. When Paulson was named Treasury Secretary, he immediately drafted Kashkari as his senior advisor before he was appointed Assistant Secretary in July this this year.
Neel was born in Akron, Ohio, to Chaman and Sheila Kashkari, Indian immigrants originally from J&K, who took the well-trodden academic route to the United States. Chaman Kashkari, who taught at the University of Akron, is now a retired professor of engineering, and Sheila Kashkari is a pathologist. Neel`s wife Minal works for defense contractor Lockheed Martin. The couple has been active in Republican circles with political contributions to the party.
Kashkari is now the second Indian at the heart of the US and world financial crisis. Vikram Pandit heads Citigroup which is now locked in a titanic battle with Wells Fargo over the acquisition of the bank Wachovia.
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once the dust settles, icici bank will reach its earlier high levels. the stock is not below its book value whereas its peers still trade at 2-5 times or even more of their book value. an excellent buy for long term. people who couldn`t buy when sensex and nifty were 12000 and 4000 have been given another godsend and if they miss out this opportunity, then well, AGAIN they will have only themselves to blame. there are companies that if sell everything they have today will be able to pay back more than what their share price trades at. this is very absurd because investment in equity is to receive only 10-15 percent return every year, dividend and capital appreciation combined and not an immediate gain. but it seems like there is a possibility of buying something for `x` and selling it for `x + something` instantaneously.
sensex is half of its high... what more can equity investors to ask for. don`t let the opportunity to abegging again.. i too bought a lot today.. icici bank down 27%.. i bought !! infosys down 16%.. i bought!! best of luck to all.. happy buying....
In reply to:
FM welcomes CRR cut; forms body to assess liquidity
Posted by :
Guest
What will happen of ICICI Bank ????????? 
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Dear shankar,but the worry is that deep bath sessions still going on in Europe and US.... there are clear signals that both the continents are undergoing in severe recession.......
In reply to:
Is indian economy collapsing????!!!!
Posted by :
shubhrasankar
It hardly matters Indian economy collapsing or not. If US and Europe improves then FII will buy shares in India also, irrespective of Indian Economy.
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i think it will afect in futur when market go up this is not time to cut crr by 150bps becous of yesterday is was cut by 0.5% so it is not good scine for futur
chandrakant from banglore
...
In reply to:
CRR cut by 50 bps; Bankers don't see cheap loans soon
Posted by : MMB Messenger
The Reserve Bank of India, or RBI, has cut the cash reserve ratio, or CRR, by 50 bps to 8.5% with effect October 11. The cut will infuse Rs 20,000 crore into the system.
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It hardly matters Indian economy collapsing or not. If US and Europe improves then FII will buy shares in India also, irrespective of Indian Economy....
In reply to:
Is indian economy collapsing????!!!!
Posted by : marketman
We have been listening indian growth stories for few years.... our financial markets too witnessed the same trend till recently.... our policy makers repeatedly assuring the investors about the strongness of indian economy.... they are saying india is immune to world financial crisis....
But indian financial markets too collapsing along with the global cues.... almost all investors and many corporates are already in deep troubles.... few are doubting at some pvt sector banks for their suspicious behaviour....
We are also part of globe,india is not from any other planet.... this common logic is ignored by our policy makers and talking nonsenses on daily basis to confuse/mislead the indian investors aswell as indian public....
Atleast the chiefs of global economy taking few steps to control the situation,we havnot seen any types of mesures or useful decisions so far in india.... already stock markets fell more than 50% from their peaks within few months.... banks are struggling for survival,many corporates facing liquidty problem,few companies at the threshold of removing employees from payrolls,experts epecting subprime type issues may occur soon in india too.... interestingly indian rupee is weaken much within short span of time....
By seeing/experiencing all these ill effects,even patriotic indians doubting about the situation of economy in the country.... few people asking questions like Is indian economy too collapsing?!
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What will happen of ICICI Bank ?????????...
In reply to:
FM welcomes CRR cut; forms body to assess liquidity
Posted by : MMB Messenger
The following is the text of Finance Minister P Chidambaram’s statement on the CRR cut.
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Inflation high or low it hardly makes any difference to common man. The prices of esssential commodities have never came down. Lets not get carried with figure quoted by the RBI. The entire economy is in a bad shape under this government. There is a downtrend in US economy and handicapped government in India is adding fuel to the fire. Montek singh righly said, \"There is a need to relook the economic policy\"....
In reply to:
Inflation at 11.80% vs 11.99%
Posted by : MMB Messenger
Inflation for the week ended September 27 has come in at 11.80% versus 11.99%. Earlier, a CNBC-TV18 poll had seen inflation coming in slightly higher at 12% against 11.99% that previously came in.
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Inflation high or low it hardly makes any difference to common man. The prices of esssential commodities have never came down. Lets not get carried with figure quoted by the RBI. The entire economy is in a bad shape under this government. There is a downtrend in US economy and handicapped government in India is adding fuel to the fire. Montek singh righly said, \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\...
In reply to:
Inflation at 11.80% vs 11.99%
Posted by : MMB Messenger
Inflation for the week ended September 27 has come in at 11.80% versus 11.99%. Earlier, a CNBC-TV18 poll had seen inflation coming in slightly higher at 12% against 11.99% that previously came in.
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Realty best bet at this moment. Also realty sector in India is quite nascent, it still has to see many bull runs coming forward.
According to market surveys worldwide, in US the home to people ratio is 1:2, 1:1 in some rich areas it is almost 2:1,3:1. While in country like india where slums are in large quantity, the ratio of home to people goes to 1:4,1:3. while in crowded areas like metro urban cities it is 1:5.
So , real estate sector in India is still to grow in big way. Long term bullishness would be seen. Also, recent rate cuts would help sector immensely.
With this surveys we can surely foresee realty sector boom 4 folds in longer run....
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Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission, said Indian banks are not under danger of financial collapse like the one that the rest of the world has seen.
...
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CRR cut has been there ...even i dont thnk so that its sufficient enough to hold on the economy crisis situation. banks are under accute liquidity crunch and many of them are not lending money at all. certainly liquidity is the major issue. i dont see intrest rate dampening in near future and it gonna have casscading effect on the productivity as cost of production may go up as cost of capital would be more. Rather then concentrating on advnaces to companies and retailers, banks are concentrating more on meeting their regulatory requirements. it is said that all the banks are adequately capitalized, but i dont find that system can work efficiantly with liquidity worries hanging on them. ...
In reply to:
CRR cut good but not enough, say bankers
Posted by : MMB Messenger
Reacting to Reserve Bank of India’s announcement to cut the cash reserve ratio by 150 basis points this morning — the 150-point cut includes the 50-bps cut announced on October 11 — experts are of the view that the cut will help infuse liquidity into the cash-starved markets.
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Rate cuts of 200 BPS in just 3 days would act as catalyst to the realty, Banks, Auto sector. followed by Oil Gas, CG....
In reply to:
RBI cuts CRR by 150 bps
Posted by : MMB Messenger
The Reserve Bank of India has cut 150 basis points to 7.5% with effect from tomorrow in a bid to infuse liquidity into the markets.
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They are cutting CRR now and will approach ADB/IMF/World Bank in 6 months with begging bowls....
In reply to:
CRR cut good but not enough, say bankers
Posted by : MMB Messenger
Reacting to Reserve Bank of India’s announcement to cut the cash reserve ratio by 150 basis points this morning — the 150-point cut includes the 50-bps cut announced on October 11 — experts are of the view that the cut will help infuse liquidity into the cash-starved markets.
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CB Bhave, Chairman, Sebi feels that the integrity of the markets has been maintained. The pay-in and pay-outs have been smooth, he said. There are no margin issues in the market, he said. The Sebi is keeping a close eye on settlements, Bhave added. The regulator has not seen any issue in stock exchange that is unusual, he said. ...
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Reacting to Reserve Bank of India’s announcement to cut the cash reserve ratio by 150 basis points this morning — the 150-point cut includes the 50-bps cut announced on October 11 — experts are of the view that the cut will help infuse liquidity into the cash-starved markets. ...
Poll
Udayan's Market Outlook
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Investors should stay in cash, not sell in panic | |
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| Udayan Mukherjee, Stocks Editor, TV18 | ||
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Popular Boarders 7days| 263 | |
| 179 | |
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Top Tracked 7days| 706 | |
| 695 | |
| 571 | |
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Prolific Boarders 7days| 378 | |
| 375 | |
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