Engineer's Finance

Generally we have a tendency to buy stuff that we are impressed with. We don’t really think much about the expenses that can incur due to our purchases. I never used to think much about the expenses that were burning a hole in my pocket. If I liked something I used to just buy it and then go on a spending spree buying the accessories for the stuff that I just bought. I have done like that for many such electronic gadgets. I never thought about the accessories when I used to buy the gadgets but in reality I have spent considerable amount on accessories.

Is it really worth spending so much for gadgets? I guess the answer depends on the individual. It is more of a choice. When we plan to buy a gadget consider the accessories as well since one day or the other I am sure we will land up in buying the same. So plan properly and think over whether the expenses incurred are really worth the penny that you are going to pour on it. Continue reading →

IOCL reported a loss of Rs. 7,047 crore for Q2 2008. Last year during the same quarter it reported a profit of Rs. 3,818 crore.

How does a company like IOCL lose so much money? I thought petroleum business is the safest and people always mint money. I think I have to reconsider my views. Petrol is always referred as black gold and investing in gold does not hamper your chances of hitting the bull’s eye. Continue reading →

RBI has again slashed the Cash Reserve Ratio and Statutory Liquidity Ratio by 1 percent and Repo Rate by 0.5%. RBI is taking measures in order to ensure that there is enough liquidity in the financial system. This move by RBI will add around Rs. 85,000 crore into the financial system.

RBI in the month of October has made several announcements to ensure there is much needed liquidity in the system. Around Rs. 270,000 crore has been pumped into the system. Most of the pundits feel that it is a good move but still they are not sure about this move. As you are aware that the global financial system is in mess and all the nations around the world are trying their level best to keep things afloat. None of them are certain about the outcome and all that they are doing is to ensure that the economy of their nation does not get into recession. Continue reading →

This is a mail forward. I really don’t know how far it is true. But I think it makes sense. So just putting up right here.

**************

Back in 1971, the USA printed and spent far more paper money than it could cover by gold.

Few years later, French demanded redemption of its paper-dollar holdings in gold. But the USA rejected as it actually didn’t had enough gold for the dollars it had already printed and spent all over the world, thus committing an act of bankruptcy. Continue reading →

I got this mail from my friend. A good one indeed.

*****

LATELY, I have been thinking a lot about the Lehman crisis . Spending money that they didn’t have and going beyond their means is one of the main reasons for their situation today. In fact that is the cause for the current economic crisis in the US .

When I see all this happening, I can only remember the good old days. Then, karz was bad. People looked down upon those who took loans. Parents would not give their daughter’s hand in marriage to a man with loans.

But of course, the times have changed now. Everyone I know has a loan. The buzz word is EMI (equated monthly installment) . Today, you can buy everything on EMI – a house, a television, an i-Pod. In fact I know of someone who just bought a fancy BMW 3 series on EMI, instead of buying a cheaper car outright with cash. I mostly prefer to take public transport, but then I am an old man with old thoughts! Continue reading →