[infotech58]

last week, when i visited one of the colleges for recruitment for the IT firm i work with, we were told to hire 60% less(er) students than we did last year from the same college.

[lambuhere1]

Source : India's economic troubles self-inflicted: Report - The Economic Times

We believe that growth dropped to well below 5 per cent in Q1 on an annualised basis
Expectations of growth have also been scaled back. The latest consensus forecasts were for 6.3 per cent growth this year, down from 7.8 per cent at the beginning of the year

[sgiitk]

What is worrying me is that they have again talked the indices up.If still no delivery then we may see the 'mother of all crashes'.

[LDJ]

Interestingly I was reading this news about the smartest man on the planet who predicts complete collapse of the developed world!

The Smartest Man is a Firedancer

[download2live]

This has to be the most depressing thread after the "Accidents in India: PICS" thread.
I open this thread with dread.

Somehow it seems that in times of recession IT guys are in the front to face the music.

[selfdrive]

Originally Posted by download2live

Somehow it seems that in times of recession IT guys are in the front to face the music.

yes, especially at majdoor/ lower management levels.
IT companies profits are rising by 4% due to dollar rates. But I dont hear anyone giving extra holidays. I remember when the rupee was stronger, some asked us to come in and work for extra time.

And in all this hoopla, the average IT guy is the person who benefits least or average from this. As most of his/ her surplus is either taxed or spent on real estate. In which case, the support structure businesses and real estate are the main areas which have benefitted manifold.

[alpha1]

Originally Posted by LDJ

Interestingly I was reading this news about the smartest man on the planet who predicts complete collapse of the developed world!

The Smartest Man is a Firedancer

It is inevitable.
All the govt's are spending much more than they earn (or even hope to earn in future, because by that time, they would have spent even more - a never ending cycle).
The only way this is going unchecked is because they are govt and hence dictate the fiscal/monetary policies (and the currencies).

And the only way they defend this is by saying it is for the good on their countrymen, which is fully endorsed by the impatient consumerism led population (when they vote).

But they don't have control over the economy to that extent - and the result? We see it all around us pretty frequently.



The simple way to describe the modern govt is a shop owners who keeps taking ever increasing loan in the hope that he will get ever increasing returns from this loan. When the lenders have had enough, they will ask their money back - and the shop owner will be left with nothing + additional last debt.

[selfdrive]

Originally Posted by alpha1

The simple way to describe the modern govt is a shop owners who keeps taking ever increasing loan in the hope that he will get ever increasing returns from this loan. When the lenders have had enough, they will ask their money back - and the shop owner will be left with nothing + additional last debt.

Bang on. We are all grasshoppers singing in the summer. And winter is bound to be here soon. Unfortunately there are not enough ants around. At least in terms of austerity measures.

Everybody just wants to enjoy the present while not working for the future. In terms of the macro economy.

[lambuhere1]

Recd this webformation

Major banks say they are ready to go under

Source : Major banks say they are ready to go under — RT

Complex financial firms with more than $250 billion in nonbank assets including J.P. Morgan Chase, Bank of America, Citigroup Inc., Goldman Sachs Group Inc., Morgan Stanley, Barclays PLC, Deutsche Bank, Credit Suisse and UBS were the first to prepare the worst case scenarios by July 1. In total, about 125 banks are expected to submit plans to the regulators by the end of 2013

[srishiva]

Originally Posted by selfdrive

yes, especially at majdoor/ lower management levels.
IT companies profits are rising by 4% due to dollar rates. But I dont hear anyone giving extra holidays. I remember when the rupee was stronger, some asked us to come in and work for extra time.

And in all this hoopla, the average IT guy is the person who benefits least or average from this. As most of his/ her surplus is either taxed or spent on real estate. In which case, the support structure businesses and real estate are the main areas which have benefitted manifold.

Most firms in India hedge against the dollar and might not really be making profits on account of rupee depreciation.

[selfdrive]

Originally Posted by srishiva

Most firms in India hedge against the dollar and might not really be making profits on account of rupee depreciation.

Then how or why were they making losses on account of rupee appreciation?
If they claimed losses due to a reason then, they should be making profits if the reason is reversed now.

[ritz3645]

Originally Posted by selfdrive

Then how or why were they making losses on account of rupee appreciation?
If they claimed losses due to a reason then, they should be making profits if the reason is reversed now.

May I with examples,

1) With new projects or when old get renewed
2) Geting paid for ongoing projects as per billing cycle

Now Finance dept of companies got into hedging of receipts, big time, insisted by all nationalised/private banks in India.
Why as INR was almost touching 42 to $.
Hedging is basically a forward contract to sell/buy X $ at a predetermined price.

Now when INR appreciates new contract quotation gets effected as they have to quote more $.

With old contract, payments also gets effected when INR appreciates.

When INR depreciates businesses run to Philippines or other countries as they like stability, and contract are min 3-5 years .

[alpha1]

Originally Posted by srishiva

Most firms in India hedge against the dollar and might not really be making profits on account of rupee depreciation.

you might be talking about companies exporting service/products (software/BPO/handicrafts.
applicable only to exports ... what about imports?
the balance of payemts for india will reveal that we (indian economy) are more geared towards imports than exports.

The import business had really affected us all - crude oil being the foremost things. Now I deal with highly specialized control systems. - we have really faced the flak with USD getting more expensive every day.

Even with forwards covers we cannnot match the erosions since the business cycle range from 6 months to 12 months.

Fortunately, all out competitors are Euro based or Yen based - (yen behaves totally like dollars, Euro also to some extent)

Who pays for it?
The indian public - because the indian public's taxc money goes to publice sectors, and they pay us.

If you see what I talked about: "And the only way they defend this is by saying it is for the good on their countrymen, which is fully endorsed by the impatient consumerism led population (when they vote)."

Do you get the drift?
Who is getting screwed?
Indian public ...

[srishiva]

Originally Posted by alpha1

you might be talking about companies exporting service/products (software/BPO/handicrafts.
applicable only to exports ... what about imports?
the balance of payemts for india will reveal that we (indian economy) are more geared towards imports than exports.
...

I guess you quoted the wrong post. I was replying to selfdrive since he mentioned IT companies.

[lambuhere1]

Source : India's downgrade to 'junk' status unlikely: Standard Chartered - Economic Times

Global banking major Standard Chartered on Friday said the possibility of a sovereign rating downgrade to the junk status is unlikely given the recent revival in sentiment.
"We do not see a high probability of an immediate downgrade but rating agencies will closely monitor the appetite for corrective action," a report by the bank's economists said.

Interesting Analysis if you replace Standard Chartered with your manager and your name in place of country. And the discussion is about your "performance review "

Do you see what I see

Disclaimer : Just trying to think a bit contra, No offence meant to anyone