Archive for August 16th, 2013

Why capitalism is awesome?

August 16, 2013

An interesting essay.

It mentions the benefits of capitalism centred around the innovation idea. Capitalism helps provide more incentives to innovate and quotes nice examples from Pizzas to Pork.

Each year the glossy business magazine FastCompany releases a list of what it considers to be the “World’s 50 Most Innovative Companies.” This list is populated much as you would expect. In 2012 the leader was Apple, followed by Facebook, Google, and Amazon.com. Spot a theme? In the top 10, there are only two companies that are not primarily digital companies. One, Life Technologies, works in genetic engineering. (The other — try not to laugh — is the Occupy Movement. FastCompany describes them as “Transparent. Tech savvy. Design savvy. Local and global. Nimble.”) Not only are most of them digital firms, but they’re all flashy and unique, and they’re almost all household names.

Everybody from Forbes to BusinessWeek hands out most innovative company awards. They’re all pretty similar and predictable. But these lists have a perverse effect. They suggest that the great success of capitalism and the market economy is inventing cutting edge technology and that if we want to observe capitalist progress, we should be looking for sleek design and popular fashion. Innovation, the media tells us, is inventing cures for cancer, solar panels, and social networking.

Though, it basically is a one-sided view of capitalism.

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Black Friday for Indian markets

August 16, 2013

Today is a Black Friday (or Red take your pick) for Indian markets. And who knows may be we have more of such days if the policy is so random.

As I said previously, the more India’s policymakers try the worse it gets. People feel there is some kind of panic brewing hence such random and quick measures.

Sensex is down by 770 pts, Nifty by 235 points, bond yields by nearly 30 bps (not yet markets closed; 10 yr at 8.80% compared to 8.50% closing on Wed) and the thing that started it all  – Rupee touched all time lows of Rs 62 per USD (currently around 62.10).

India’s suffering from its own Sub-prime/Greece moment. What next from RBI/FM?


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