Tag: Economy & Economics

“Until you realize how easy it is for your mind to be manipulated, you remain the puppet of someone else’s game.”

Opinion

Silicon Valley Bank | How Does a Bank Collapse in 48 Hours?

Silicon Valley Bank (SVB) was a well-capitalized institution seeking to raise some funds. Within 48 hours, a panic induced by the very venture capital community that SVB had served and nurtured ended the bank’s 40-year run. While relatively unknown outside of Silicon Valley, SVB was among the top 20 American commercial banks, with US$209 billion in total assets at the end of last year. Faced with higher interest rates, loss of IPOs, and a funding drought, SVB’s clients began pulling money out of the bank. Lenders somewhat similar to SVB are in an unfortunate situation. A failure to protect deposits over $250,000 could cause a loss of faith in other mid-sized banks. Analysts said SVB’s collapse is unlikely to set off the kind of domino effect that gripped the banking industry during the financial crisis. Continue reading Silicon Valley Bank | How Does a Bank Collapse in 48 Hours?

Indrajit RoyChoudhury10 Comments
Opinion

Are Greed & Stupidity Causes of Recession?

A recession is a business cycle contraction when there is a general decline in economic activity. We have seen just as the market can become overwhelmed with greed; it can also succumb to fear. Just as greed dominates the market during a boom, fear prevails following its bust.The recession is nothing but the greed of big businesses to be more profitable by reducing quality and using unfair practices and also of careless arrogant employees giving pathetic service as long as profits are coming. Continue reading Are Greed & Stupidity Causes of Recession?

Indrajit RoyChoudhury16 Comments
Opinion

Is India Heading Towards a Recession?

Ever since the COVID-19 crisis started all over the world, the risk of different economies falling into the grip of recession has increased. The fear of a recession once again in the world has deepened. The impact of a US recession on India will depend on the magnitude of the recession; how big the recession is. While the economy has shown resilience, it cannot remain immune to a slowdown in the global economy and a possible recession in advanced economies. Continue reading Is India Heading Towards a Recession?

Indrajit RoyChoudhury11 Comments
Opinion

Dollar-Rupee Heading 80 & May Hit 82

The Indian rupee has plunged more than 6 per cent against the US dollar this year and tumbled to record lows against the American currency in recent weeks, weighed down by broad strength in the greenback and as investors retreated from domestic share markets. This is in spite of the Indian central bank’s conviction and actions to stall a freefall. The Reserve Bank of India (RBI) has attempted to save the vulnerable rupee. The analysts say the dollar is likely going to remain strong for the next three months, possibly to the end of the year. The Fed wants to maintain a strong dollar so that the dollar can remain the world’s major reserve currency. Continue reading Dollar-Rupee Heading 80 & May Hit 82

Indrajit RoyChoudhury7 Comments
Opinion

Can the Chinese Renminbi Challenge the US Dollar?

China has pushed for greater Renminbi adoption across Africa, and its recent talks with Saudi Arabia for a Renminbi-based oil deal have signaled that nations are at least thinking about some alternative or counterweight to the US dollar. For China to continue pushing the Renminbi to take on a greater share of the global reserve currency, it would have to prove the Renminbi’s long-term stability to win the trust of other nations. Continue reading Can the Chinese Renminbi Challenge the US Dollar?

Indrajit RoyChoudhury10 Comments
Opinion

Digital Attacker Banks’ Time Has Come

Digital attacker banks have demonstrated that they can delight customers, scale up quickly and expand into new products, geographies and customer segments. Digital attackers are lower cost, faster to innovate and can transform their traditional parents. As an alternative to embarking on a multiyear, hugely expensive systems transformation, some incumbent banks have launched attackers with the aim of transforming the core business. Continue reading Digital Attacker Banks’ Time Has Come

Indrajit RoyChoudhury11 Comments
Opinion

The Veblen Effect

Veblen effect is an abnormal market behavior where consumers purchase the higher-priced goods whereas similar low-priced (but not identical) substitutes are available. It is caused either by the belief that higher price means higher quality, or by the desire for conspicuous consumption (to be seen as buying an expensive, prestige item). Named after its discoverer, the US social-critic Thorstein Bunde Veblen (1857-1929). Continue reading The Veblen Effect

Indrajit RoyChoudhury6 Comments
Opinion

Taking Banks to Next Level | Platformification

Platformification is not a new concept but is has never been applied to the banking industry before. In essence, a platform is a place where producers and consumers meet to conduct some form of exchange such as they did in the markets of yore. Platformification without digitally open platforms will not help. Open platforms help in the evolution of ecosystems, where business models are heading towards. It can create a path for relationship-building with API providers and constructs a space for those providers to access a wider customer base. Continue reading Taking Banks to Next Level | Platformification

Indrajit RoyChoudhury9 Comments
Opinion

Reverse Migration in India | COVID-19

Post COVID-19 lockdowns in India, thousands of daily wage labourers belonging to the unorganised sector have been leaving big cities in droves. They have no other alternative but to return to their villages though their future there is also bleak. Having no public means of transport, many have left on foot to remote places like UP, Bihar, and West Bengal from Delhi, Mumbai, Ahmedabad, etc. Some have taken rickshaws to reach their destinations. Continue reading Reverse Migration in India | COVID-19

Indrajit RoyChoudhury20 Comments
Opinion

Coronavirus is as economically contagious as it’s medically | COVID-19

Earlier this month, G7 finance ministers and central bank governors vowed to use “all appropriate policy tools” to contain the economic threat posed by the coronavirus. The question left unanswered is what is appropriate and what will work. The immediate response took the form of central bank rate cuts, with the US Federal Reserve fast off the mark. Though central banks can move quickly, however, it is … Continue reading Coronavirus is as economically contagious as it’s medically | COVID-19

Indrajit RoyChoudhury7 Comments