Banks lending in rural India is a great thing to have happened. Most people who borrow are genuineĀ  -but there are some politically supported borrowers too. The main reason why a person in India (or in any part of the world too!) repays the loan is ‘because it is the right thing to do’. This […]

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The reason it will take years for the market to reach equilibrium – where buyers and sellers can easily meet – is that the market for newer homes has more sellers than buyers! Who is selling? The first is those who bought in the past few years and owe more on their house than what […]

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Money market is described as the market where short term debt is dealt with. Thus financial instruments which can be quickly turned to cash is dealt with in the Money Market. Short term normally means holding period of < 1 year. The asset should be very liquid – ease of convertibility to cash, and the […]

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The Housing Marketā€¦ Why the Price-to-Rent Ratio is Signaling More Pain Ahead Whether you’re investing in real estate, stocks, bonds, or gold coins, you are rewarded primarily for your exposure to one thing – risk. After all, markets are only risk transferring mechanism. In the summer of 2007, I warned friends that if they were […]

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